NTPC Green Energy Limited has agreed a partnership with Assago Industries to develop what the companies describe as India’s first large-scale green urea production ecosystem, to be located at the planned Green Hydrogen Hub in Pudimadaka on the Andhra Pradesh coast, POWERLINE writes.

The memorandum of understanding sets out a vertically integrated model in which NTPC’s renewable energy arm will supply key low-carbon inputs, including green ammonia, captured carbon dioxide, renewable electricity and associated utilities. These inputs will be used by Assago Industries to manufacture urea with a significantly lower carbon footprint than conventional fertiliser production, which relies heavily on fossil fuel-based feedstock.

The project is intended to support India’s long-standing goal of reducing its dependence on imported urea, a commodity that places a persistent burden on public finances through subsidies and exposure to volatile global prices. By anchoring production to domestically produced green hydrogen and ammonia, the partners aim to improve supply security while aligning fertiliser manufacturing with the country’s broader decarbonisation strategy.

For NTPC Green Energy, the agreement fits with a wider effort to build demand for green hydrogen derivatives and to turn planned hydrogen hubs into industrial clusters rather than standalone energy projects. For Assago Industries, the Pudimadaka development offers a route into a nascent but strategically important segment of the fertiliser market. While commercial viability will hinge on costs and policy support, the collaboration signals growing momentum behind low-carbon alternatives in one of India’s most emissions-intensive industries.

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