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SECI floats green ammonia tender to decarbonise fertiliser production
SECI floats green ammonia tender to decarbonise fertiliser production

Business Standard

time9 hours ago

  • Business
  • Business Standard

SECI floats green ammonia tender to decarbonise fertiliser production

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.

SECI launches tender for the offtake of green ammonia
SECI launches tender for the offtake of green ammonia

Time of India

time10 hours ago

  • Business
  • Time of India

SECI launches tender for the offtake of green ammonia

The Solar Energy Corporation of India Limited (SECI), a 'Navratna' Central Public Sector Undertaking under the Ministry of New and Renewable Energy (MNRE), has launched a tender for the offtake of green ammonia , a crucial step towards decarbonising India's vital fertiliser sector and aligns with the nation's ambitious climate goals. According to an official press release, the tender, issued on June 7, 2024, seeks the annual production and supply of 724,000 tonnes of green ammonia across 13 fertiliser plants. This ambitious target falls under the Strategic Interventions for Green Hydrogen Transition (SIGHT) Scheme, a key component of the broader national green hydrogen mission . The final bid submissions are due shortly, on June 26, 2025. SECI will play a pivotal role by aggregating demand and signing long-term offtake agreements with producers, offering them market certainty over a 10-year contract period. To further bolster financial viability for producers, the government is providing substantial Production Linked Incentives (PLI) under the National Green Hydrogen Mission. These incentives amount to ₹8.82/kg, ₹7.06/kg, and ₹5.30/kg for the first three years respectively, totaling a support of ₹1,533.4 crore. A robust Payment Security Mechanism (PSM) has also been committed by the government of India to mitigate potential payment delays from fertiliser companies. This crucial measure aims to assure suppliers of steady cash flows, thereby encouraging wider participation and facilitating necessary financing for these projects. The bidding process will utilise SECI's transparent e-reverse auction model, ensuring competitive price discovery. India's fertiliser sector is a major consumer of ammonia, with an annual demand of approximately 17-19 million tonnes. More than 50 per cent of the hydrogen required for this production is currently derived from imported natural gas. The release noted that SECI's green ammonia initiative also offers a significant hedge against global gas price fluctuations, contributing to a lower trade deficit. The shift to green hydrogen, from which green ammonia is produced, offers substantial environmental benefits. Green hydrogen production emits less than 2 kg of CO₂ per kilogram, a stark contrast to the up to 12 kg of CO₂ emitted from conventional grey hydrogen, which relies on fossil fuels.

MoS Naik urges industry, global firms to invest in Green Hydrogen sector
MoS Naik urges industry, global firms to invest in Green Hydrogen sector

Business Standard

time4 days ago

  • Business
  • Business Standard

MoS Naik urges industry, global firms to invest in Green Hydrogen sector

Minister of State for New & Renewable Energy Shripad Yesso Naik on Thursday said that Green Hydrogen has the power to ensure energy security and called upon industry leaders to invest in research and development and to build infrastructure in this field. Addressing the inaugural 'CII International Business Conclave on Green Hydrogen' the minister highlighted that Green Hydrogen has the power to reduce dependency on fossil fuels and enhance industrial competitiveness across sectors. "I invite global companies, governments, and financing institutions to partner with us in green hydrogen research, innovation, and trade," the minister said and called upon "India's industry to invest in R&D, scale manufacturing, build infrastructure, and develop human capital." The minister said Green Hydrogen is not just a fuel, it is a commitment to the planet, to future generations, and to sustainable prosperity. For India, with its strong Micro, Small and Medium Enterprise (MSME) base and varied industrial clusters, distributed models can unlock local demand and drive bottom-up growth, he said. These models will not only strengthen domestic hydrogen consumption but also make the green fuel more accessible and regionally balanced. "In tandem, we are encouraging the development of Green Hydrogen corridors across the country," he said. Under the SIGHT programme, tenders have already been issued for 42,000 metric tonnes of Green Hydrogen per annum for refineries and over 7.2 lakh metric tonnes of Green Ammonia for fertilizers, he noted. Our strategy to position India as a global Green Hydrogen hub also depends on robust international partnerships, he opined. India is working with key partners -- including the EU, Japan, Singapore, Germany, and the Netherlands -- to establish offtake agreements, certification frameworks, and shared infrastructure for storage, transport, and trade, he noted. New & Renewable Energy Secretary Santosh Kumar Sarangi said that Green Hydrogen has a great future. He said the government is already working on four elements related to fuel and those are regulation, incentives, standards and collaborations with stakeholders. He also stated that the ministry is working with industry on the definition of Green Hydrogen. Chairman ReNew, Sumant Sinha opined that Green Hydrogen is essential for energy transition. According to Sinha India needs 40 million tonnes of Green Hydrogen (annually) to achieve the goal of net zero by 2070. He suggested that India needs to replace the use of 6 million tonnes of Grey Hydrogen by Green Hydrogen. He pointed that high cost of Green Hydrogen which is USD 4.5 per kg, while Grey Hydrogen is available for half a USD. He suggested subsidies for boosting Green Hydrogen production in the country. He was of the view that India needs to deal with issues of high cost, GST, long term contracts and demand creation to boost Green Hydrogen in the country.

Shripad Yesso Naik urges industry, global firms to invest in Green Hydrogen sector
Shripad Yesso Naik urges industry, global firms to invest in Green Hydrogen sector

Time of India

time4 days ago

  • Business
  • Time of India

Shripad Yesso Naik urges industry, global firms to invest in Green Hydrogen sector

Minister of State for New & Renewable Energy Shripad Yesso Naik on Thursday said that Green Hydrogen has the power to ensure energy security and called upon industry leaders to invest in research and development and to build infrastructure in this field. Addressing the inaugural 'CII International Business Conclave on Green Hydrogen' the minister highlighted that Green Hydrogen has the power to reduce dependency on fossil fuels and enhance industrial competitiveness across sectors. "I invite global companies, governments, and financing institutions to partner with us in green hydrogen research, innovation, and trade," the minister said and called upon "India's industry to invest in R&D, scale manufacturing, build infrastructure, and develop human capital." The minister said Green Hydrogen is not just a fuel, it is a commitment to the planet, to future generations, and to sustainable prosperity. For India, with its strong Micro, Small and Medium Enterprise (MSME) base and varied industrial clusters, distributed models can unlock local demand and drive bottom-up growth, he said. These models will not only strengthen domestic hydrogen consumption but also make the green fuel more accessible and regionally balanced. "In tandem, we are encouraging the development of Green Hydrogen corridors across the country," he said. Under the SIGHT programme, tenders have already been issued for 42,000 metric tonnes of Green Hydrogen per annum for refineries and over 7.2 lakh metric tonnes of Green Ammonia for fertilizers, he noted. Our strategy to position India as a global Green Hydrogen hub also depends on robust international partnerships, he opined. India is working with key partners -- including the EU, Japan, Singapore, Germany, and the Netherlands -- to establish offtake agreements, certification frameworks, and shared infrastructure for storage, transport, and trade, he noted. New & Renewable Energy Secretary Santosh Kumar Sarangi said that Green Hydrogen has a great future. He said the government is already working on four elements related to fuel and those are regulation, incentives, standards and collaborations with stakeholders. He also stated that the ministry is working with industry on the definition of Green Hydrogen. Chairman ReNew, Sumant Sinha opined that Green Hydrogen is essential for energy transition. According to Sinha India needs 40 million tonnes of Green Hydrogen (annually) to achieve the goal of net zero by 2070. He suggested that India needs to replace the use of 6 million tonnes of Grey Hydrogen by Green Hydrogen. He pointed that high cost of Green Hydrogen which is USD 4.5 per kg, while Grey Hydrogen is available for half a USD. He suggested subsidies for boosting Green Hydrogen production in the country. He was of the view that India needs to deal with issues of high cost, GST, long term contracts and demand creation to boost Green Hydrogen in the country.

Shripad Yesso Naik urges industry, global firms to invest in Green Hydrogen sector
Shripad Yesso Naik urges industry, global firms to invest in Green Hydrogen sector

Time of India

time5 days ago

  • Business
  • Time of India

Shripad Yesso Naik urges industry, global firms to invest in Green Hydrogen sector

Minister of State for New & Renewable Energy Shripad Yesso Naik on Thursday said that Green Hydrogen has the power to ensure energy security and called upon industry leaders to invest in research and development and to build infrastructure in this field. Addressing the inaugural 'CII International Business Conclave on Green Hydrogen' the minister highlighted that Green Hydrogen has the power to reduce dependency on fossil fuels and enhance industrial competitiveness across sectors. "I invite global companies, governments, and financing institutions to partner with us in green hydrogen research, innovation, and trade," the minister said and called upon "India's industry to invest in R&D, scale manufacturing, build infrastructure, and develop human capital." The minister said Green Hydrogen is not just a fuel, it is a commitment to the planet, to future generations, and to sustainable prosperity. For India, with its strong Micro, Small and Medium Enterprise (MSME) base and varied industrial clusters, distributed models can unlock local demand and drive bottom-up growth, he said. Live Events These models will not only strengthen domestic hydrogen consumption but also make the green fuel more accessible and regionally balanced. "In tandem, we are encouraging the development of Green Hydrogen corridors across the country," he said. Under the SIGHT programme, tenders have already been issued for 42,000 metric tonnes of Green Hydrogen per annum for refineries and over 7.2 lakh metric tonnes of Green Ammonia for fertilizers, he noted. Our strategy to position India as a global Green Hydrogen hub also depends on robust international partnerships, he opined. India is working with key partners -- including the EU, Japan, Singapore, Germany, and the Netherlands -- to establish offtake agreements, certification frameworks, and shared infrastructure for storage, transport, and trade, he noted. New & Renewable Energy Secretary Santosh Kumar Sarangi said that Green Hydrogen has a great future. He said the government is already working on four elements related to fuel and those are regulation, incentives, standards and collaborations with stakeholders. He also stated that the ministry is working with industry on the definition of Green Hydrogen. Chairman ReNew, Sumant Sinha opined that Green Hydrogen is essential for energy transition. According to Sinha India needs 40 million tonnes of Green Hydrogen (annually) to achieve the goal of net zero by 2070. He suggested that India needs to replace the use of 6 million tonnes of Grey Hydrogen by Green Hydrogen. He pointed that high cost of Green Hydrogen which is USD 4.5 per kg, while Grey Hydrogen is available for half a USD. He suggested subsidies for boosting Green Hydrogen production in the country. He was of the view that India needs to deal with issues of high cost, GST, long term contracts and demand creation to boost Green Hydrogen in the country.

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