The Solar Energy Corporation of India Limited, or SECI, has issued a tender for the offtake of green ammonia, signaling a major push for sustainable fertilizer production and leveraging clean energy to achieve national climate goals.
The Navratna has taken a decisive step towards decarbonizing India’s fertilizer sector, signaling a major push for sustainable fertilizer production and leveraging clean energy to achieve national climate goals.
The tender calls for the annual production and supply of a substantial 724,000 tons of green ammonia across 13
fertilizer plants.
This initiative falls under the Strategic Interventions for Green Hydrogen Transition (SIGHT) Scheme – Mode 2A, Tranche I, which aims to foster a robust green hydrogen ecosystem in India.
Currently, ammonia, a vital component in urea and other nitrogen-based fertilizers, is predominantly produced using fossil fuels, resulting in significant greenhouse gas emissions.
The SECI tender directly addresses this by promoting the use of renewable energy to produce green hydrogen, which is then used to synthesize green ammonia, leading to a much lower carbon footprint.
Producing green hydrogen emits less than 2 kg of CO₂ per kilogram, a stark contrast to the up to 12 kg CO₂ generated by conventional grey hydrogen.
To ensure the financial viability and widespread adoption of this sustainable transition, the government is offering substantial support under the National Green Hydrogen Mission.
This includes Production Linked Incentives (PLI) of 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. Furthermore, a robust Payment Security Mechanism (PSM) committed by the Government of India aims to de-risk potential payment delays from fertilizer companies, providing crucial assurance and encouraging greater participation from suppliers and financiers.
It must be noted that India’s annual ammonia consumption ranges between 17-19 million tons, with over half of its hydrogen requirements met by imported natural gas. SECI’s proactive move is expected to drastically reduce this import dependence, mitigate exposure to volatile global gas prices, and consequently lower the nation’s trade deficit.
This tender represents a pivotal step towards India’s ambitious goal of achieving net-zero carbon emissions by 2070 and aligns seamlessly with the broader vision of Viksit Bharat – a developed, sustainable, and self-reliant India.
The tender issued on June 7, 2024, is approaching its final bid submission deadline of June 26, 2025.
SECI encourages bidders to submit their most competitive proposals, continuing its legacy of pioneering clean energy markets through innovation and transparency on a global scale.
