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Overview of Green Ammonia Plant

Green ammonia is an eco-friendly alternative to traditional ammonia production, typically produced from natural gas. The conventional method of production generates greenhouse gas emissions that contribute to global warming. In India, the demand for green ammonia is growing as the country aims to reduce its carbon footprint and meet its commitments under the Paris Agreement.

The key components of a green ammonia plant include a renewable energy source, an electrolyser for hydrogen production, a synthesis unit for producing ammonia, and storage and handling facilities for the final product. The cost of setting up a green ammonia plant in India varies depending on the scale and location.In terms of funding, government incentives and subsidies play a crucial role in promoting green ammonia business setup in the country. The government has announced various plans to increase the size of renewables in the country's energy mix and has set ambitious targets for reducing greenhouse gas emissions. This creates an opportunity for private investors and companies to take advantage of the growing demand for green ammonia in India.

Benefits of Green Ammonia

Green ammonia is an essential source of energy and has the following benefits:

Easy Storage: Ammonia as a component can be easily stored if the pressure of the containers can be maintained between 10-15 or if the temperature can be lowered to -33℃. This characteristic makes ammonia easy to store. Most of the counties have existing networks and infrastructure to transport them.

Reduction in Carbon fuel: Ammonia can be used in different engines and can also be used to produce electricity. The only residues of ammonia in such processes are water and nitrogen. So, once the industries adopt ammonia, carbon fuel emissions will reduce significantly.

Hydrogen carrier: It is challenging to store and transport hydrogen. However, it is an essential gas that is required by multiple industries. Ammonia can be used to deal with this issue as it is easy to carry and transport and can be cracked and purified to form hydrogen gas when required.

Permits and Licenses

The Green ammonia plant setup in India requires various permits and licenses, such as:

Environmental clearances and Regulatory clearances: The applicant must obtain environmental clearances such as Pollution (NOC), waste management certificates, permits for usage of ground water etc., from the Ministry of Environment, Forest and Climate change.

Industrial licenses: The company needs to apply for the appropriate industrial licenses as the plant will utilise hazardous chemicals. These licenses shall be granted by the Department for Promotion of Industry and Internal Trade G2B.

Land use Permits: One must also have proof of ownership of land. The applicant can produce either the rent agreement or the lease agreement for the same. However, an applicant must obtain permission to set up the plant from the concerned authorities.

Building permits: The plant must also receive structural and fire safety certificates from the municipal authorities before the beginning of the operations. Failure to obtain this may result in the immediate shutting down of the plant.

Electricity permits: The applicant must ensure that they have a proper electricity connection to carry out the plant operations. The license from the electricity board shall vary from state to state. This licence will be essential to avail of the electricity benefits the central government offers.

Pollution Board permits: The company has to obtain clearances from the central and state pollution control board before discharging emissions into the surrounding water or air.

Tax Registrations: The company also must obtain all the tax permits, including the GST registration, TDS registration and PAN card for the business.

Government Incentives

The government has introduced multiple incentives for Green Ammonia manufacturers to facilitate the National Green Hydrogen mission and reach its climate targets by 2030. These are:

  • Manufacturers are permitted to purchase renewable power from anyone anywhere.
  • The manufacturer shall be granted open access within 15 days from the receipt of the application.
  • The Manufacturers of Green Ammonia can store their renewable power for up to 30 days with the distribution company and utilise it whenever required.
  • The Distribution licenses will also enable the manufacturers to procure or supply renewable energies throughout the country. The manufacturer only needs to pay the cost of procurement, wheeling charge and a minimal margin as required by the state governments.
  • The transmit charges for Green ammonia between the states shall be waived off by the government for the initial 25 years for all the projects commissioned before 30th June 2025.
  • Green ammonia plants shall be given connection to the grid on a priority basis to minimise procedural delays.
  • Green ammonia manufacturers shall benefit from the government's Renewable Purchase obligation.
  • The Ministry of New and Renewable Energy shall develop a portal for manufacturers to obtain statutory clearances for their projects.
  • The manufacturers of the Green Ammonia shall be allowed to create bunkers near the ports to ease the process of export of ammonia through shipping. This land shall be allotted to the company by the port authorities.

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How will Corpbiz help you in setting Green Ammonia Plant?

  • Fill in the Consultation form to obtain our Green Ammonia Plant services. Our Experts will contact you to schedule a meeting.
  • In the meeting, we will understand your requirements and provide you with an apt advisory to set up your Green Ammonia Plant Service.
  • We will help you get all the permits and licenses required to operate a Green Ammonia Plant in India.
  • Then, we shall help you file an error-free application for your plant with the Ministry of New and Renewable Energy.
  • We shall perform periodic follow-ups with the authorities and constantly update you about your application's status until delivery.

Frequently Asked Questions

Ammonia is a chemical compound formed with nitrogen and hydrogen. Green ammonia is a type of ammonia that is renewable and carbon-free.

The manufacturers of green ammonia shall be permitted connectivity to the Inter-State Transmission system on a priority basis free of cost for the first 25 years if they begin their operations before June 2025.

The government plans to achieve its target of producing 1 million to 5 million metric tonnes of green hydrogen by the year 2030 as per the National Hydrogen mission.

Green ammonia has a lot of benefits, such as; it is a clean fuel, it will reduce the consumption of fossil fuels in the future, It will help the country adhere to its commitments in the international forum, and lastly, it will promote the use of clean fuel.

RPO refers to the Renewable Purchase obligation, which is enforced on certain entities to ensure that they purchase a specific amount of electricity from renewable sources. This incentive shall be extended to manufacturers as they shall be provided with a distribution license.

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