New Delhi: The Solar Energy Corporation of India Limited (SECI), a ‘Navratna’ Central Public Sector Undertaking under the Ministry of New and Renewable Energy (MNRE), has issued a tender for the offtake of 724,000 tonnes of green ammonia annually to decarbonise India’s fertiliser sector. With bid submissions due by June 26, 2025, the tender, issued on June 07, 2024, targets 13 fertiliser plants under the Strategic Interventions for Green Hydrogen Transition (SIGHT) Scheme – Mode 2A, Tranche I.
SECI will aggregate demand and sign 10-year offtake agreements to provide producers with market certainty. The initiative utilises renewable energy to produce green hydrogen and ammonia, enabling low-emission, domestic fertiliser production. India consumes 17-19 million tonnes of ammonia annually, with over 50% of its hydrogen requirement used in fertiliser production, mostly from imported natural gas. Producing green hydrogen emits less than 2 kg of CO₂ per kilogram, compared to up to 12 kg CO₂ from grey hydrogen.
To support financial viability, the government offers Production Linked Incentives (PLI) of ₹8.82/kg, ₹7.06/kg, and ₹5.30/kg for the first three years, totalling ₹1,533.4 crore under the National Green Hydrogen Mission. A Payment Security Mechanism (PSM) provided by the Government of India mitigates risks of payment delays from fertiliser companies, ensuring consistent cash flows for suppliers. The bidding process will use SECI’s e-reverse auction model for competitive and transparent price discovery.
The tender addresses the “chicken-and-egg” challenge of the hydrogen economy by fostering both demand and supply. It generates immediate demand to attract investment in green hydrogen production, electrolyser manufacturing, and related clean energy sectors. Domestic green ammonia production is expected to reduce reliance on imported natural gas, minimise exposure to global gas price volatility, decrease the trade deficit, strengthen resilience during geopolitical disruptions, and create new employment opportunities.
Ammonia, a key component in urea and other nitrogen-based fertilisers, is currently produced using fossil fuels, resulting in significant greenhouse gas emissions. SECI’s initiative supports India’s goal of achieving net-zero carbon emissions by 2070 and aligns with the vision of Viksit Bharat – a developed, sustainable, and self-reliant India. Bidders are invited to submit competitive proposals, building on SECI’s legacy of advancing clean energy markets with innovation, transparency, and global impact.
– global bihari bureau
