Experts suggest that the government lacks clarity regarding subsidy amounts and the complexities associated with this nascent industry, which has no precedent for price discovery.The green ammonia manufacturing strategy is part of the Strategic Interventions for Green Hydrogen Transition (SIGHT) program under the National Green Hydrogen Mission (NGHM).Manufacturing green ammonia using renewable energy offers a sustainable alternative to traditional ammonia production. One of the major applications of green ammonia is fertilizer production, which is essential for modern agriculture. Other uses include energy storage, fuel for various sectors, and manufacturing plastics, explosives, and synthetic fibers.According to a market expert, the cost of producing synthetic (gray) ammonia is approximately Rs 40 per kilogram, while the cost for green ammonia is estimated at around Rs 80 per kilogram. However, the government has proposed a subsidy of Rs 7-8, which manufacturers feel is insufficient to cover the cost. Industry want the government shall take care of difference of cost and also payment in US dollars to cover the dollars fluctuation cost.Meanwhile, a new South Korean technology has emerged with an estimated production cost of around Rs 64 per kilogram. “Even the current rate of subsidy cannot cover the costs of the new Korean technology, so the industry is unable to move forward,” stated a senior officer at SECI, speaking on the condition of anonymity.
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