In a significant move towards decarbonizing the fertilizer sector, the Solar Energy Corporation of India (SECI) has issued a Request for Selection (RfS) under the Strategic Interventions for Green Hydrogen Transition (SIGHT) Scheme. This initiative aims to procure 724,000 tonnes of green ammonia annually, marking a pivotal step in India’s commitment to achieving net-zero carbon emissions by 2070.
Tender Details
The RfS, identified as SECI/C&P/MI/00/0002/2024-25, was published on June 7, 2024. The bid submission deadline has been extended to June 30, 2025, with the techno-commercial bid opening scheduled for July 3, 2025.
Procurement Objective
SECI plans to procure 724,000 tonnes of green ammonia annually for 13 fertilizer plants across India. This initiative is part of the SIGHT Programme under the National Green Hydrogen Mission (NGHM), which is spearheaded by the Ministry of New & Renewable Energy (MNRE).
Bidding Process
The selection of green ammonia producers will be conducted through cost-based competitive bidding under Mode 2A of the SIGHT Programme. The bidding process will include an e-reverse auction to ensure transparency and competitiveness.
Financial Incentives
To enhance financial viability, the government is extending Production Linked Incentives (PLIs) under the NGHM. These incentives are offered at ₹8.82/kg in the first year, ₹7.06/kg in the second, and ₹5.30/kg in the third year, totaling ₹1,533.4 crore in support.
Strategic Importance
India’s current ammonia consumption stands at approximately 17 to 19 million tonnes annually, with over half of its hydrogen demand coming from the fertilizer sector—most of it sourced from imported natural gas. The green ammonia tender is expected to reduce this dependency, cut exposure to global price volatility, and enhance energy security.
Implications for the Fertilizer Sector
Decarbonization: Transitioning to green ammonia will significantly reduce carbon emissions associated with ammonia production. Green hydrogen production emits less than 2 kg of CO₂ per kilogram, compared to up to 12 kg CO₂ per kilogram of grey hydrogen.
Energy Security & Economic Benefits
By sourcing green ammonia domestically, India aims to reduce its reliance on imported natural gas, thereby enhancing energy security and reducing exposure to global price fluctuations
The initiative is expected to stimulate investment in green hydrogen technologies and infrastructure, creating new economic opportunities and promoting sustainable industrial growth.
What to conclude?
SECI’s green ammonia tender represents a significant milestone in India’s journey towards a sustainable and self-reliant energy future. By integrating green hydrogen into the fertilizer sector, India is not only addressing environmental concerns but also paving the way for a resilient and diversified energy landscape.
Read More From: India Accelerates Green Hydrogen Push with SECI’s 724,000-Tonne Green Ammonia Tender to Transform Fertilizer Sector
