India's chemicals and fertilisers sector encompasses urea and ammonia production (IFFCO, RCF, NFL, GNFC, Coromandel), petrochemicals (Reliance, ONGC Petro Additions, GAIL), industrial gases, and speciality chemicals. The sector is both a significant CO₂ emitter — from natural gas SMR, coal gasification, and process heating — and the sector with the greatest CO₂ utilisation revenue potential, given that urea synthesis requires CO₂ as a direct chemical feedstock and methanol production from CO₂ + hydrogen is commercially mature.
India produces approximately 25 MT of urea annually — second only to China — consuming 18 MT of CO₂ per year as a chemical feedstock. This CO₂ is currently sourced from the same fossil SMR process that produces the hydrogen for ammonia synthesis. Replacing fossil CO₂ with captured industrial CO₂ and simultaneously decarbonising the hydrogen supply creates certified "green urea" that commands a USD 40–80/tonne premium in European markets — the strongest utilisation revenue case NCM has identified in any Indian sector.
India's annual urea production — 2nd largest globally, consuming 18 MT CO₂/yr as feedstock
Per-tonne green urea premium in European markets — strongest CCU revenue case in Indian industry
India's methanol demand implied by 15% petrol blending target — CO₂-derived methanol opportunity
Annual H₂ demand from fertiliser sector — all from unabated SMR, decarbonisable with CCS
Fertiliser plant SMR + CCS is the most commercially mature CCUS pathway in this sector. Natural gas steam methane reforming — the source of both the hydrogen for ammonia and the CO₂ for urea — can be retrofitted with post-combustion or pre-combustion CCS. The captured CO₂ either replaces the fossil CO₂ in urea synthesis (creating green urea) or is stored geologically. NCM has identified GNFC Bharuch, IFFCO Kandla, RCF Trombay, and NFL Panipat as priority green urea feasibility study candidates.
Coal gasification + CCS is the second pathway — applicable to fertiliser plants currently using coal-based ammonia synthesis (via coal gasification to syngas). Pre-combustion CCS on the gasification process produces a concentrated CO₂ stream at high pressure — lower energy penalty than post-combustion PCC. GNFC's naphtha-to-coal conversion history makes Bharuch a candidate for gasification + CCS + green urea integration.
GNFC's Bharuch complex is NCM's highest-priority green urea engagement in India. The complex has a captive coal power plant (providing a PCC CO₂ source), existing hydrogen production infrastructure (for blue hydrogen conversion), port proximity for EU export via Hazira, and ownership by the Government of Gujarat — which has expressed strong interest in green urea as a flagship climate and export competitiveness initiative. NCM has completed a pre-feasibility assessment targeting 500,000 tonnes/year of green urea production at Bharuch by 2028.
IFFCO — India's largest fertiliser cooperative and one of the world's largest fertiliser producers — has the network scale and cooperative structure that makes a multi-plant green urea programme commercially viable. IFFCO's Kandla and Aonla plants are NCM's second and third priority green urea sites, offering port access and proximity to premium agricultural markets respectively.
NCM's chemicals and fertilisers advisory covers the complete green urea and CO₂ utilisation value chain: CO₂ source identification, capture feasibility, green/blue hydrogen transition pathway, urea synthesis integration, certification strategy (ISCC+, RSB), and premium offtake agreement structuring. Our advisory is distinctive in its European market-side depth — we identify specific EU fertiliser distributor and food company offtakers and negotiate term sheet frameworks for premium green urea supply agreements.
For the methanol economy pathway, NCM evaluates coal gasification + CCS + methanol, green methanol (CO₂ + solar H₂), and blended approaches against India-specific methanol demand projections and coal/gas availability. The optimal route varies significantly by location — coal-rich AP and Jharkhand favour gasification + CCS; solar-rich Rajasthan and Gujarat favour green methanol from CO₂ + renewable H₂.
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.