We need a green exit from the urea trap, Pg8

Key Highlights:

• India heavily relies on urea, with nearly 90% of its consumption being import-dependent.
• The urea subsidy has increased from less than Rs 500 crore in 1980-81 to Rs 1.65 lakh crore in 2022-23.
• Green urea, produced using renewable energy, is projected to be more cost-effective than grey urea by 2028.
• A Green Urea Mission is proposed to transition urea manufacturing to green hydrogen, optimize consumption, and rebalance the fertilizer mix.

Detailed Insights:

• India's dependence on imported natural gas for urea production poses a significant risk to food security due to geopolitical instability.
• Green urea production involves using hydrogen from electrolysis, carbon dioxide from carbon capture, and nitrogen from the atmosphere, powered by renewable energy.
• The National Green Hydrogen Mission and carbon capture initiatives should prioritize green urea production to reduce import dependence.
• Optimizing urea consumption and promoting non-chemical farming can mitigate environmental damage and improve nitrogen use efficiency.
• Phased decontrol of the urea sector is essential to foster market competition and incentivize innovation for sustainable practices.

Key Concepts Involved:

• Urea: A nitrogen-rich chemical compound used globally as a fertilizer in agriculture.
• Grey Urea: Urea produced using natural gas as a feedstock for hydrogen and carbon dioxide.
• Green Urea: Urea produced using hydrogen from electrolysis powered by renewable energy sources.
• Carbon Capture and Utilisation (CCU): Technologies used to capture CO2 emissions from industrial processes for reuse.