SECI floats green ammonia tender to decarbonise fertiliser production

Business Standard

4 hours ago

The Solar Energy Corporation of India (SECI) has invited bids for the supply of 724,000 tonnes of green ammonia annually to 13 fertiliser plants in a move aimed at decarbonising India's heavily polluting fertiliser sector. Issued under the Strategic Interventions for Green Hydrogen Transition (SIGHT) scheme, the tender marks a major push towards integrating green hydrogen into industrial use.
A Central Public Sector Enterprise with Navratna status under the Ministry of New and Renewable Energy (MNRE), SECI will aggregate demand and enter into agreements with selected producers for 10 years, MNRE said in a statement. The final date for submitting bids is June 26, 2025.
The initiative targets ammonia, an essential component in urea and other nitrogen-based fertilisers, which is currently produced using fossil fuels, leading to high greenhouse gas emissions. SECI's tender will leverage renewable energy to produce green hydrogen and ammonia, promoting low-emission and domestic fertiliser production.
To support the shift, the government is offering financial incentives under the National Green Hydrogen Mission, with production-linked incentives of Rs 8.82/kg, Rs 7.06/kg, and Rs 5.30/kg for the first three years, respectively, amounting to total support of Rs 1,533.4 crore. A payment security mechanism has also been put in place to mitigate the risks of payment delays from fertiliser companies. This will assure suppliers of steady cash flows.
India consumes approximately 17–19 million tonnes of ammonia annually. The fertiliser industry consumes over half of the country's hydrogen demand, much of which is derived from imported natural gas.
SECI's initiative is expected to cut this dependence, reduce exposure to global gas price fluctuations, and lower the trade deficit. Domestic green ammonia production is expected to enhance resilience during geopolitical disruptions and generate new employment opportunities, said the statement.
SECI's green ammonia tender addresses the 'chicken-and-egg' challenge facing the hydrogen economy by simultaneously stimulating demand and supply. This initiative is a step towards India's goal of achieving net-zero carbon emissions by 2070.