Every tonne of urea produced contains 0.73 tonnes of CO₂ — captured and chemically fixed.
Urea (CO(NH₂)₂) is synthesised from ammonia and carbon dioxide in the Bosch-Meiser process: 2NH₃ + CO₂ → NH₂COONH₄ → CO(NH₂)₂ + H₂O. This means CO₂ is not a waste stream in urea production — it is a required chemical feedstock. Every tonne of urea produced incorporates 0.73 tonnes of CO₂, which is chemically fixed in the urea molecule and released only when urea is applied to soil and hydrolysed by urease enzymes. The CO₂ incorporated in urea therefore has a deferral period of weeks to months in the soil — not permanent storage, but commercially significant for CBAM and certification purposes.
India's urea industry currently sources its CO₂ from the same natural gas steam methane reforming process that produces the hydrogen for ammonia synthesis — it is a fossil-derived CO₂ stream. Replacing this fossil CO₂ with CO₂ captured from an industrial emission source — a power plant, cement kiln, or steel mill — while also using green or blue hydrogen for ammonia synthesis creates "green urea" that carries a significantly lower Scope 1 lifecycle carbon footprint than conventional urea. This green urea commands a price premium in European fertiliser markets and satisfies emerging CBAM and voluntary procurement requirements from food and agricultural companies with Net Zero supply chain commitments.
The commercial opportunity for Indian fertiliser producers is substantial. India produces approximately 25 MT of urea annually — second only to China — and is a significant exporter. European green procurement mandates for fertilisers are expected to create a price premium of USD 40–80 per tonne of urea for certified low-carbon product by 2027–2030. For a 1 MT/year urea plant, this premium represents USD 40–80 million per year of additional revenue — a meaningful contribution to the economics of co-located CCUS investment.
India's annual urea production — second largest globally, requiring 18 MT CO₂ as feedstock
Tonnes of CO₂ incorporated per tonne of urea produced — CO₂ is the feedstock, not a by-product
Per-tonne premium for certified green urea in European fertiliser markets
Annual CO₂ demand from India's urea sector — one of the world's largest concentrated CCU markets
NCM maps the complete green urea value chain for each client — from CO₂ source identification through certification to premium offtake structuring.
Capture CO₂ from an industrial source co-located with or pipeline-connected to the urea plant. Best sources: captive coal power, biomass energy, or a cement plant within the fertiliser complex. CO₂ purity requirement for urea synthesis: >99.5% — requiring post-capture purification from most amine capture streams.
Simultaneously produce ammonia from green hydrogen (electrolysis) or blue hydrogen (SMR + CCS) rather than conventional natural gas SMR. This step is the larger carbon reduction of the two — decarbonising the hydrogen feedstock reduces urea lifecycle CO₂ by 60–70%. CO₂ capture replaces the remaining fossil CO₂ feedstock.
Combine the decarbonised ammonia with the captured CO₂ in the standard Bosch-Meiser process. No process modification is required — the captured CO₂ is chemically identical to the fossil CO₂ currently used. The plant's existing synthesis loop, prilling tower, and storage infrastructure are used without modification.
Obtain green urea certification from a recognised body — ISCC+, RSB, or an India Carbon Market-registered green fertiliser standard. NCM develops the lifecycle carbon assessment (LCA) and monitoring, verification, and reporting (MVR) documentation required for certification.
Supply certified green urea to European agricultural distributors, food companies with Net Zero supply chain commitments, or domestic premium agriculture markets. NCM structures the offtake agreement to lock in the premium for a minimum 5–7 year term — providing the revenue certainty required for CCUS financing.
India's major urea producers — Rashtriya Chemicals & Fertilizers (RCF), Indian Farmers Fertiliser Cooperative (IFFCO), National Fertilizers Limited (NFL), Gujarat Narmada Valley Fertilizers & Chemicals (GNFC), and Coromandel International — collectively produce India's 25 MT/year urea output at plants distributed across Gujarat, Uttar Pradesh, Andhra Pradesh, and Maharashtra. Each of these producers has a co-located or nearby industrial CO₂ source that can supply the decarbonised CO₂ feedstock for green urea certification.
GNFC's Bharuch complex in Gujarat is NCM's highest-priority green urea engagement — the complex has a captive coal power plant (providing a post-combustion capture CO₂ source), existing hydrogen production infrastructure (for blue hydrogen conversion), and proximity to both Hazira port (for European export) and GSPC's natural gas pipeline network (for future green hydrogen supply). NCM has completed a pre-feasibility assessment for a 500,000 tonne/year green urea production unit at the GNFC Bharuch complex.
The government of India's fertiliser subsidy framework — which currently subsidises conventional urea at approximately USD 300 per tonne above international market price — will need to be adapted to accommodate green urea's higher production cost. NCM is engaged with the Department of Fertilizers and Ministry of Chemicals to design a "green urea differential" subsidy mechanism that incentivises the transition without disrupting India's agricultural input price stability.
NCM's green urea advisory covers the complete project lifecycle: CO₂ source identification and capture feasibility, hydrogen decarbonisation pathway analysis (green vs. blue), urea synthesis integration, certification strategy, and premium offtake structuring. Our advisory is distinctive in its market-side depth — we do not just design the technical system but model the European green fertiliser market trajectory, identify specific offtakers, and negotiate term sheet frameworks for premium supply agreements.
The certification strategy is a critical and often overlooked element. Different green urea certification standards (ISCC+, RSB, voluntary industry standards) have different lifecycle boundary definitions, CO₂ accounting methodologies, and audit requirements. The choice of certification standard affects both the achievable premium and the cost of compliance documentation. NCM selects the certification pathway that maximises net revenue after certification cost for each client's specific CO₂ source, hydrogen supply, and offtake market.
NCM also supports clients in engaging with the Department of Fertilizers on the green urea subsidy transition framework — because the economics of green urea investment in India depend partly on the government's willingness to recognise the higher production cost of decarbonised urea and adjust the subsidy accordingly. Our policy advisory experience with the Ministry of Chemicals gives clients a significant advantage in navigating this engagement.
Whether you are a government body seeking policy advice, an industrial company facing CBAM exposure, or an investor seeking CCUS project opportunities — our team is ready to engage.