SECI has issued a landmark green ammonia tender to supply 724,000 tonnes annually to 13 fertilizer plants, promoting decarbonization under India’s green hydrogen mission. With long-term contracts, government incentives, and payment security, the initiative fosters investment, reduces import reliance, and supports India’s net-zero goal and the vision of Viksit Bharat.
The Solar Energy Corporation of India Limited (SECI), a 'Navratna' Central Public Sector Enterprise operating under the Ministry of New and Renewable Energy (MNRE), has launched a milestone green ammonia tender aimed at transforming India’s fertilizer industry. Issued on June 7, 2024, this tender invites bids for the supply of 724,000 tonnes of green ammonia annually to 13 fertilizer plants, under the Strategic Interventions for Green Hydrogen Transition (SIGHT) Scheme – Mode 2A, Tranche I. The submission deadline is set for June 26, 2025.
This initiative marks a significant step in decarbonizing the fertilizer sector, which traditionally relies on fossil fuels for ammonia production, resulting in substantial greenhouse gas emissions. By leveraging renewable energy to produce green hydrogen — the precursor to green ammonia — this project aims to establish a low-emission and self-reliant fertilizer production model. SECI will facilitate demand aggregation and sign long-term offtake agreements with producers, ensuring a secure market over a 10-year contract duration and fostering confidence in project investments.
To enhance financial viability, the government is providing generous incentives under the National Green Hydrogen Mission. Production Linked Incentives (PLIs) will be offered at Rs. 8.82/kg, Rs. 7.06/kg, and Rs. 5.30/kg for the first, second, and third years respectively, totalling financial support of Rs. 1,533.4 crore. In addition, a Payment Security Mechanism (PSM) is being implemented by the Government of India to safeguard suppliers against payment delays, thereby attracting broader participation and facilitating easier financing.
The tender process will adopt SECI’s e-reverse auction model, known for enabling transparent and competitive price discovery. India currently consumes between 17 and 19 million tonnes of ammonia annually, with over 50% of hydrogen usage dedicated to fertilizer production — most of which is derived from imported natural gas. Transitioning to domestic green ammonia production will significantly reduce dependency on imports, shield the sector from global price volatility, and improve the trade balance.
Green hydrogen, with emissions as low as 2 kg of CO2 per kg, presents a stark contrast to conventional grey hydrogen, which emits up to 12 kg of CO2 per kg. Beyond environmental benefits, this green ammonia initiative is expected to enhance energy security, provide employment opportunities, and offer greater resilience in times of geopolitical uncertainty.
SECI’s tender strategically addresses the hydrogen sector’s “chicken-and-egg” dilemma by simultaneously driving both supply and demand. It sets the stage for large-scale investments in electrolyser manufacturing and clean hydrogen ecosystems. The initiative aligns with India's ambition to reach net-zero emissions by 2070 and contributes to the broader goal of Viksit Bharat — a self-reliant and sustainable developed nation. SECI continues to champion innovation, transparency, and leadership in the global clean energy space.
