changeadminThe Solar Energy Corporation of India Limited (SECI), under the aegis of the Ministry of New and Renewable Energy (MNRE), has issued a landmark tender for the offtake of Green Ammonia, aimed at decarbonising India’s fertiliser sector.
With final bid submissions due shortly, the tender calls for the production and supply of 724,000 tonnes of green ammonia annually across 13 fertiliser plants, under the Strategic Interventions for Green Hydrogen Transition (SIGHT) Scheme – Mode 2A, Tranche I.
SECI will anchor demand aggregation and sign long-term offtake agreements, providing producers with market certainty over a 10-year contract period.
Ammonia, an essential component in urea and other nitrogen-based fertilisers, 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 fertiliser production.
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 government to de-risk potential payment delays from fertiliser companies. This assures suppliers of steady cash flows, encouraging greater participation and financing.
The bidding process will follow SECI’s e-reverse auction model, ensuring competitive and transparent price discovery.
India consumes approximately 17-19 million tonnes of ammonia annually, with more than 50% of its hydrogen requirement used in fertiliser production. However, most of this is derived from imported natural gas.
SECI’s initiative is expected to drastically cut import 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.
Domestic green ammonia production is expected to enhance resilience during geopolitical disruptions and generate new employment opportunities.
SECI’s green ammonia tender addresses the “chicken-and-egg” challenge facing the hydrogen economy by simultaneously stimulating demand and supply.
It creates an immediate demand pull that encourages investment in green hydrogen production, electrolyser manufacturing, and allied clean energy sectors.
This initiative is a pivotal move toward India’s goal of achieving net-zero carbon emissions by 2070 and supports the broader vision of Viksit Bharat – a developed, sustainable, and self-reliant India.
Bidders are encouraged to bring forward their most competitive proposals, continuing SECI’s legacy of pioneering clean energy markets with innovation, transparency, and global impact.
The tender was issued on the 7th June 2025, and the last date for bid submission is the 26th June 2025.
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