SECI Issues Rs 1,500 Cr Green Ammonia Tender To Decarbonise Fertiliser Sector

(MENAFN- KNN India) New Delhi, Jun 23 (KNN) The Solar Energy Corporation of India Limited (SECI) has floated a tender for the annual offtake of 724,000 tonnes of green ammonia.

Targeted at 13 fertiliser plants across the country, the initiative is part of the Strategic Interventions for Green Hydrogen Transition (SIGHT) Scheme – Mode 2A, Tranche I.

Launched on June 7, 2024, with bid submissions due by June 26, 2025, the tender seeks to accelerate the decarbonisation of India's fertiliser industry, which heavily relies on fossil-fuel-based ammonia.

SECI will aggregate demand and enter into long-term offtake agreements, offering market certainty through 10-year contracts.

The initiative is expected to catalyse green hydrogen adoption by creating immediate demand for its downstream application in fertiliser production.

Currently, ammonia production, a key input in urea and other nitrogenous fertilisers, is a major source of industrial carbon emissions.

The proposed green ammonia will be derived from renewable energy-based hydrogen, drastically lowering the carbon footprint of domestic fertiliser manufacturing.

To bolster financial viability, the government is extending production-linked incentives under the National Green Hydrogen Mission-Rs 8.82/kg, Rs 7.06/kg, and Rs 5.30/kg for the first three years respectively-amounting to a total support of Rs 1,533.4 crore.

The bidding process will follow SECI's established e-reverse auction model to enable transparent and competitive price discovery.

India currently consumes 17–19 million tonnes of ammonia annually, with over half of its hydrogen needs directed toward fertiliser production-mostly derived from imported natural gas.

The green ammonia initiative aims to reduce this dependence, insulate the sector from global gas price volatility, and support macroeconomic stability by lowering the trade deficit.

(KNN Bureau)

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