SECI's Green Ammonia Tender to Revolutionize India's Fertiliser Sector
Key Ideas
- SECI launches tender for 724,000 tonnes of green ammonia annually to 13 fertiliser plants in India, as part of the SIGHT Scheme to transition to green hydrogen.
- The tender aims to reduce industrial CO₂ emissions, stabilize domestic fertiliser production costs, and decrease dependence on imported natural gas for hydrogen needs.
- Government offers Production Linked Incentives for the first three years totaling INR 1,533.4 crore to boost financial feasibility and conducts e-reverse auction for competitive pricing.
- SECI's initiative aligns with India's climate goals for net-zero emissions by 2070, promotes self-reliance, and stimulates investment in green hydrogen and clean energy sectors.
The Solar Energy Corporation of India (SECI) has initiated a groundbreaking tender to procure 724,000 tonnes of green ammonia annually for 13 fertiliser plants in India, aiming to revolutionize the country's fertiliser sector. This move, under the Ministry of New and Renewable Energy's Strategic Interventions for Green Hydrogen Transition (SIGHT) Scheme, marks a significant step towards decarbonisation and renewable hydrogen adoption. Green ammonia, produced through renewable energy-driven electrolysis, offers a low-emission alternative to conventional ammonia, thereby contributing to reducing industrial CO₂ emissions.
SECI's tender is structured around a 10-year offtake model to ensure market stability by serving as the demand aggregator and providing long-term contracts with green ammonia producers. The initiative not only aims to stabilize domestic fertiliser production costs but also lessen India's reliance on imported natural gas for hydrogen production. To make the project financially viable, the government is offering attractive Production Linked Incentives (PLI) for the initial three years, totaling INR 1,533.4 crore, and will conduct an e-reverse auction for competitive price determination.
This initiative is aligned with India's climate objectives, including the target of achieving net-zero emissions by 2070, and supports the vision of a self-reliant and developed India. By addressing the 'chicken-and-egg' challenge of the hydrogen economy, SECI's tender stimulates both demand and supply, encouraging investments in green hydrogen production, electrolyser manufacturing, and other clean energy sectors. This move not only signifies a significant leap in India's energy transition but also cements its position as a leader in clean energy innovation globally.
Topics
Asia
Renewable Energy
Carbon Emissions
Energy Transition
Climate Goals
Government Incentives
Fertiliser Industry
Clean Energy Innovation
Auction Model
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