India's Groundbreaking Green Ammonia Tender: Revolutionizing Fertiliser Production
Key Ideas
- SECI's landmark tender aims to decarbonize India's fertiliser sector by offtaking 724,000 tonnes of green ammonia annually across 13 plants under the SIGHT Scheme.
- Financial incentives under the National Green Hydrogen Mission, including Production Linked Incentives and a Payment Security Mechanism, ensure market certainty and participation.
- The initiative reduces India's dependence on imported natural gas for ammonia production, lowering carbon emissions and contributing to the goal of achieving net-zero by 2070.
- SECI's transparent e-reverse auction model for the bidding process promotes competitiveness, innovation, and sustainable practices in the production of green hydrogen and ammonia.
The Solar Energy Corporation of India Limited (SECI) is on the brink of finalizing a significant tender focused on the procurement of green ammonia to revolutionize the fertiliser sector in India. This tender, part of the Strategic Interventions for Green Hydrogen Transition (SIGHT) Scheme, will see the production and supply of 724,000 tonnes of green ammonia annually across 13 fertiliser plants. SECI, a 'Navratna' Central Public Sector Undertaking under the Ministry of New and Renewable Energy (MNRE), will facilitate demand aggregation and long-term offtake agreements to provide producers with market stability over a decade-long contract period. The tender, issued in June 2024, aims to promote low-emission fertiliser production by utilizing renewable energy sources like green hydrogen. To ensure financial viability, the government is offering substantial incentives through the National Green Hydrogen Mission, totaling ₹1,533.4 crore, including Production Linked Incentives and a Payment Security Mechanism to safeguard against payment delays. By reducing India's reliance on imported natural gas for ammonia production, this initiative will significantly cut carbon emissions and decrease exposure to global gas price fluctuations, ultimately aiding in the country's goal of achieving net-zero carbon emissions by 2070. The bidding process, conducted through SECI's e-reverse auction model, emphasizes transparency and competitiveness, encouraging innovative solutions in the transition to green ammonia production. This initiative not only aligns with India's sustainability goals but also showcases the country's commitment to pioneering clean energy markets with a focus on innovation and sustainable practices.
Topics
India
Renewable Energy
Innovation
Sustainability
Carbon Emissions
Government Incentives
Net-zero Goal
Fertiliser Sector
Clean Energy Markets
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