Green Ammonia Tender: Decarbonising India's Fertiliser Sector
Key Ideas
  • SECI launches tender for 724,000 tonnes of green ammonia annually across 13 fertiliser plants to decarbonise India's vital sector.
  • Government offers Production Linked Incentives and Payment Security Mechanism to boost financial viability and assure steady cash flows.
  • Initiative aims to reduce reliance on imported natural gas, hedge against global price fluctuations, and minimize CO2 emissions compared to grey hydrogen.
  • Green hydrogen production through green ammonia offers significant environmental benefits and aligns with India's climate goals.
The Solar Energy Corporation of India Limited (SECI) has initiated a tender for the production and supply of 724,000 tonnes of green ammonia per year across 13 fertiliser plants in India. This move is a significant step towards decarbonising the country's vital fertiliser sector and aligning with ambitious climate goals. The tender falls under the Strategic Interventions for Green Hydrogen Transition (SIGHT) Scheme, a crucial aspect of India's broader green hydrogen mission. The government is supporting the initiative by providing substantial Production Linked Incentives (PLI) under the National Green Hydrogen Mission, amounting to a total of ₹1,533.4 crore over three years. To ensure financial viability for producers, a Payment Security Mechanism (PSM) has been established to prevent payment delays and offer steady cash flows. The shift to green ammonia aims to reduce India's reliance on imported natural gas for ammonia production, providing a hedge against global price fluctuations. Additionally, green hydrogen production emits significantly less CO2 compared to conventional grey hydrogen, aligning with efforts to minimize carbon emissions. The overall goal of this initiative is to encourage wider participation in green hydrogen projects, promote environmental sustainability, and contribute to India's efforts in reducing carbon emissions in the fertiliser sector.
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