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First-of-its-kind tender targets 724,000 tonnes annual green ammonia supply, leveraging renewable energy to cut emissions and import dependence in fertilizer production.
The Solar Energy Corporation of India Limited (SECI), under the Ministry of New and Renewable Energy, has issued a landmark tender for the supply of 724,000 tonnes of green ammonia annually to 13 fertilizer plants, aiming to decarbonize India’s fertilizer sector under the Strategic Interventions for Green Hydrogen Transition (SIGHT) Scheme. The bid deadline, recently extended to June 30, 2025, provides producers with market certainty through long-term offtake agreements spanning 10 years.
Ammonia, critical for urea and other fertilizers, is currently produced from fossil fuels, resulting in significant greenhouse gas emissions. SECI’s initiative will use renewable energy to generate green hydrogen and ammonia, reducing emissions and dependence on imported natural gas. To support financial viability, the government is offering Production Linked Incentives (PLI) of ₹8.82/kg, ₹7.06/kg, and ₹5.30/kg for the first three years, with a robust payment security mechanism to ensure timely payments to suppliers.
India’s annual ammonia demand stands at 17–19 million tonnes, with over half of hydrogen needs met by imported gas. SECI’s tender is expected to lower import reliance, shield the sector from global gas price volatility, and support India’s net-zero goals by 2070. The move also stimulates investment in green hydrogen and allied sectors, supporting the vision of a sustainable and self-reliant India.
