Tuesday, 24 June 2025
In a major push towards decarbonising fertilizer production, the Solar Energy Corporation of India (SECI) is set to finalise its landmark tender for the production and supply of 7.24 lakh tonnes of green ammonia annually across 13 fertilizer plants. The initiative falls under the Government of India’s Strategic Interventions for Green Hydrogen Transition (SIGHT) scheme, part of the National Green Hydrogen Mission.
Ammonia, a critical input in urea and other nitrogen-based fertilizers, is currently produced using fossil fuels, making it a significant source of greenhouse gas emissions. SECI’s green ammonia tender marks a strategic shift to renewable energy-powered hydrogen and ammonia production, aimed at lowering emissions and fostering self-reliance in domestic fertilizer manufacturing.
Issued on June 7, 2024, the tender invites bids for long-term supply contracts and is open for submission until June 26, 2025. SECI will act as the demand aggregator, entering into 10-year offtake agreements with producers—ensuring market stability and predictability for private players.
To ensure commercial viability, the central government has announced Production Linked Incentives (PLI) of Rs 8.82/kg, Rs 7.06/kg, and Rs 5.30/kg for the first three years of production, respectively. This support totals Rs 1,533.4 crore, and is complemented by a robust Payment Security Mechanism (PSM) to insulate suppliers from delays in payments by fertilizer companies.
India’s ammonia demand currently stands at 17–19 million tonnes per year, with over 50 per cent of hydrogen use attributed to fertilizer production. Most of this hydrogen is derived from imported natural gas. The green ammonia push is expected to reduce import dependence, mitigate exposure to volatile gas prices, and help cut the trade deficit.
Significantly, green hydrogen production emits under 2 kg of CO₂ per kg, compared to up to 12 kg CO₂ from conventional grey hydrogen, offering substantial emissions reduction potential.
