Madhya Bharat Agro Products Limited (MBAPL) has achieved a significant milestone by securing long-term green ammonia supply for its fertilizer manufacturing plants in Madhya Pradesh and Maharashtra. This development comes through the latest auction held by the Solar Energy Corporation of India Limited (SECI) under its Green Ammonia initiative, marking a strong step towards sustainable and renewable-based industrial operations in India.

The SECI Green Ammonia Auction Wins

In the competitive SECI green ammonia auction, Oriana Power Limited emerged successful by winning a bid at ₹52.25 per kg to supply 60,000 metric tonnes per annum of ammonia to MBAPL’s upcoming Sagar, Madhya Pradesh plant. This supply agreement ensures that MBAPL secures a critical raw material — ammonia — for its NPK fertilizer production, thereby stabilising production costs and ensuring long-term operational reliability.

In parallel, a consortium of SCC Infrastructure Pvt. Ltd. and InSolare Energy Limited secured a bid at ₹53.05 per kg to supply 70,000 metric tonnes per annum of ammonia to MBAPL’s Dhule, Maharashtra plant. Together, these two supply agreements amount to 1,30,000 metric tonnes of ammonia annually, reinforcing MBAPL’s strategic sourcing capabilities for essential fertilizer inputs.

Government Support and Policy Push

This landmark achievement is credited to proactive measures and policy frameworks from the Ministry of New and Renewable Energy (MNRE), along with the Department of Fertilizers (DoF). Both ministries have been instrumental in creating an enabling environment for green energy adoption in the industrial sector.

The MNRE’s push for renewable energy-based hydrogen and ammonia production aims to reduce India’s dependency on imported fossil fuels while simultaneously cutting carbon emissions. The DoF’s support in aligning fertilizer manufacturing policies with sustainable sourcing further amplifies this mission.

Significance for MBAPL’s Operations

Ammonia is a critical raw material for producing NPK fertilizers, which are essential for enhancing agricultural productivity. Traditionally, ammonia production has been heavily reliant on fossil fuels, making it a major contributor to industrial greenhouse gas emissions. By securing green ammonia — ammonia produced using renewable energy — MBAPL is not only ensuring raw material availability but also reducing its carbon footprint.

This shift to green ammonia will have several operational benefits:

• Cost stability: Long-term contracts at pre-determined prices will reduce exposure to volatile ammonia markets.

• Sustainability credentials: Enhancing MBAPL’s image as a green energy-driven fertilizer manufacturer.

• Policy alignment: Matching the Government of India’s targets for net-zero emissions in industrial sectors.

The Role of Project Partners

The success of these bids also highlights the role of Oriana Power, SCC Infrastructure, and InSolare Energy in India’s green energy landscape.

• Oriana Power is known for its renewable energy solutions, particularly in solar and hybrid energy projects. Its participation ensures that the ammonia supplied to MBAPL’s MP plant will be rooted in clean energy processes.

• SCC Infrastructure and InSolare Energy bring engineering, procurement, and renewable integration expertise, ensuring that MBAPL’s Maharashtra operations receive consistent and high-quality ammonia supply.

Broader Implications for India’s Green Energy and Fertilizer Sectors

This development represents a transformative shift for India’s fertilizer manufacturing industry. The integration of green ammonia into mainstream production processes could pave the way for:

• Lower emissions in agriculture-linked industries.

• Reduced reliance on imported ammonia and fossil fuel-based feedstocks.

• Increased adoption of renewable hydrogen technology, as green ammonia is derived from green hydrogen.

The Indian government has set ambitious targets for green hydrogen and ammonia production under the National Green Hydrogen Mission, aiming to make India a global hub for production and export. Initiatives like MBAPL’s partnership with Oriana Power and SCC-InSolare not only contribute to this national vision but also strengthen India’s position in global sustainability rankings.

Commitment to Shareholders and Future Outlook

MBAPL has reiterated its commitment to keeping shareholders informed about significant business developments. The company believes these long-term contracts will boost profitability, operational stability, and sustainability credentials, positioning it as a leader in the green fertilizer manufacturing sector.

Looking ahead, MBAPL is expected to explore further renewable integration into its manufacturing processes, possibly expanding into other forms of green energy adoption, such as bio-based inputs and waste-to-energy solutions.

In conclusion, the successful SECI green ammonia bids secured by Oriana Power and the SCC-InSolare consortium for MBAPL mark a major step towards sustainable industrial practices in India. This achievement not only strengthens MBAPL’s fertilizer manufacturing capabilities but also contributes significantly to the country’s renewable energy and climate goals.

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