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

Business Standard

time5 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

time6 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.

SECI set to finalise tender for 7,24,000 tonne green ammonia production annually
SECI set to finalise tender for 7,24,000 tonne green ammonia production annually

Economic Times

time8 hours ago

  • Business
  • Economic Times

SECI set to finalise tender for 7,24,000 tonne green ammonia production annually

Agencies Green hydrogen (Representational Image) State-owned Solar Energy Corporation of India (SECI) is set to finalise a tender for production and supply of 7,24,000 tonne of green ammonia annually across 13 fertilizer plants under Strategic Interventions for Green Hydrogen Transition scheme. Ammonia, an essential component in urea and other nitrogen-based fertilizers, is currently produced using fossil fuels, leading to high greenhouse gas emissions. SECI's tender leverages renewable energy to produce green hydrogen and ammonia, promoting low-emission, domestic fertilizer production. SECI will anchor demand aggregation and sign long-term offtake agreements, providing producers with market certainty over a 10-year contract period. The tender was issued on June 7, 2024 and the last date for bid submission is June 26, 2025. To ensure financial viability, the government is offering financial incentives under the National Green Hydrogen Mission, with 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. A robust Payment Security Mechanism (PSM) is also committed by the Centre to de-risk potential payment delays from fertilizer companies. India consumes approximately 17-19 million tonnes of ammonia annually, with more than 50 per cent of its hydrogen requirement used in fertilizer production. However, most of this is derived from imported natural gas. SECI's initiative is expected to drastically cut this dependence, reduce exposure to global gas price fluctuations, and lower the trade deficit. Producing green hydrogen emits less than 2 kg of CO₂ per kilogram, compared to up to 12 kg CO₂ from conventional grey hydrogen.

SECI set to finalise tender for 7,24,000 tonne green ammonia production annually
SECI set to finalise tender for 7,24,000 tonne green ammonia production annually

Time of India

time8 hours ago

  • Business
  • Time of India

SECI set to finalise tender for 7,24,000 tonne green ammonia production annually

State-owned Solar Energy Corporation of India ( SECI ) is set to finalise a tender for production and supply of 7,24,000 tonne of green ammonia annually across 13 fertilizer plants under Strategic Interventions for Green Hydrogen Transition scheme. Ammonia, an essential component in urea and other nitrogen-based fertilizers, is currently produced using fossil fuels, leading to high greenhouse gas emissions. SECI's tender leverages renewable energy to produce green hydrogen and ammonia, promoting low-emission, domestic fertilizer production. SECI will anchor demand aggregation and sign long-term offtake agreements, providing producers with market certainty over a 10-year contract period. The tender was issued on June 7, 2024 and the last date for bid submission is June 26, 2025. Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like Elegant New Scooters For Seniors In 2024: The Prices May Surprise You Mobility Scooter | Search Ads Learn More Undo by Taboola by Taboola To ensure financial viability, the government is offering financial incentives under the National Green Hydrogen Mission , with 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. A robust Payment Security Mechanism (PSM) is also committed by the Centre to de-risk potential payment delays from fertilizer companies. Live Events India consumes approximately 17-19 million tonnes of ammonia annually, with more than 50 per cent of its hydrogen requirement used in fertilizer production. However, most of this is derived from imported natural gas. SECI's initiative is expected to drastically cut this dependence, reduce exposure to global gas price fluctuations, and lower the trade deficit. Producing green hydrogen emits less than 2 kg of CO₂ per kilogram, compared to up to 12 kg CO₂ from conventional grey hydrogen.

SECI set to finalise tender for 7,24,000 tonne green ammonia production annually
SECI set to finalise tender for 7,24,000 tonne green ammonia production annually

Mint

time8 hours ago

  • Business
  • Mint

SECI set to finalise tender for 7,24,000 tonne green ammonia production annually

PTI Published 23 Jun 2025, 01:28 PM IST New Delhi, Jun 23 (PTI) State-owned Solar Energy Corporation of India (SECI) is set to finalise a tender for production and supply of 7,24,000 tonne of green ammonia annually across 13 fertilizer plants under Strategic Interventions for Green Hydrogen Transition scheme. Ammonia, an essential component in urea and other nitrogen-based fertilizers, is currently produced using fossil fuels, leading to high greenhouse gas emissions. SECI's tender leverages renewable energy to produce green hydrogen and ammonia, promoting low-emission, domestic fertilizer production. SECI will anchor demand aggregation and sign long-term offtake agreements, providing producers with market certainty over a 10-year contract period. The tender was issued on June 7, 2024 and the last date for bid submission is June 26, 2025. To ensure financial viability, the government is offering financial incentives under the National Green Hydrogen Mission, with Production Linked Incentives (PLI) of ₹ 8.82/kg, ₹ 7.06/kg, and ₹ 5.30/kg for the first three years respectively- amounting to a total support of ₹ 1,533.4 crore. A robust Payment Security Mechanism (PSM) is also committed by the Centre to de-risk potential payment delays from fertilizer companies. India consumes approximately 17-19 million tonne of ammonia annually, with more than 50 per cent of its hydrogen requirement used in fertilizer production. However, most of this is derived from imported natural gas. SECI's initiative is expected to drastically cut this dependence, reduce exposure to global gas price fluctuations, and lower the trade deficit. Producing green hydrogen emits less than 2 kg of CO₂ per kilogram, compared to up to 12 kg CO₂ from conventional grey hydrogen.

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