India Achieves Green Ammonia Price Breakthrough

In a landmark development under the National Green Hydrogen Mission, the first-ever auction conducted by SECI for the procurement of Green Ammonia under the SIGHT Scheme (Mode-2A) has achieved a record low price discovery of Rs 55.75/kg.

The Solar Energy Corporation of India Limited (SECI) is a public sector company of the Ministry of New and Renewable Energy, dedicated to the growth and development of green energy capacity in India. 

This pioneering auction covers the supply of 75,000 metric tonnes per annum of Green Ammonia to Paradeep Phosphates Limited in Odisha. It is the first in a planned series of 13 auctions over the coming month, under a tender aggregating a cumulative procurement capacity of 7.24 lakh MT/year.

The discovered price translates to approximately US$641/MT, a substantial drop from the previously discovered price of US$1,153/MT (Rs 100.28/kg) in the H2Global auction in 2024.

With Grey Ammonia prices reaching US$515/MT (as of March 2025), this 10-year fixed-price bid provides a strong economic rationale for offtakers to initiate their clean energy transition journey.

Ammonia, an essential component in urea and other nitrogen-based fertilisers, is currently produced using fossil fuels, leading to high greenhouse gas emissions (grey ammonia). Green ammonia leverages renewable energy, promoting low-emission domestic fertiliser production.

SECI, acting as the intermediary procurer, has successfully anchored the auction under the guidance of the Ministry of New & Renewable Energy (MNRE), with steadfast support from the Department of Fertilisers and the participation of offtakers.

The tender was issued in June 2025 and followed the e-reverse auction model, ensuring competitive and transparent price discovery. The auction witnessed intense competition, reflecting the strong investor and developer confidence in India’s green energy transition framework.

This price discovery marks a watershed moment in India’s Green Hydrogen journey and reinforces the country’s vision of becoming a global hub for Green Hydrogen production. 

As per a NITI Aayog report, India’s green ammonia production costs could be approximately 29 per cent lower than China’s and 43 per cent lower than Australia’s by 2030. One of the major drivers for lowering green energy prices is the increasing domestic solar module manufacturing capabilities spurred by the Government’s initiatives.

With robust payment security mechanisms in place, the scheme unlocks confidence across the value chain and enables large-scale adoption of Green Ammonia in India.