India's SECI Initiative: Revolutionizing Fertilizer Production with Green Ammonia
Key Ideas
  • SECI's tender aims to produce 7,24,000 tonnes of green ammonia annually for 13 fertilizer plants, reducing greenhouse gas emissions.
  • The initiative leverages renewable energy for low-emission domestic fertilizer production, anchoring demand aggregation for a 10-year contract period.
  • Government incentives include Production Linked Incentives of up to ₹8.82/kg for green ammonia production, ensuring financial viability and de-risking payment delays.
  • India's shift to green hydrogen and ammonia production is expected to reduce dependence on imported natural gas, lower trade deficit, and significantly cut carbon emissions.
The Solar Energy Corporation of India (SECI) is finalizing a tender to produce and supply 7,24,000 tonnes of green ammonia annually to 13 fertilizer plants under the Green Hydrogen Transition scheme. Ammonia, crucial for urea production, is currently made with fossil fuels, causing high greenhouse gas emissions. SECI's initiative aims to use renewable energy for green hydrogen and ammonia production, facilitating low-emission domestic fertilizer manufacturing. By anchoring demand aggregation with long-term offtake agreements, SECI provides market certainty for producers over a decade. The government supports this with financial incentives, offering Production Linked Incentives (PLI) totaling ₹1,533.4 crore over three years. Additionally, a Payment Security Mechanism is in place to reduce payment risks for producers. India, a major ammonia consumer, predominantly relies on imported natural gas. SECI's project is set to reduce this dependency, decrease exposure to global gas price fluctuations, and mitigate the trade deficit. Notably, producing green hydrogen emits less CO₂ compared to conventional grey hydrogen, contributing to a greener future for India's fertilizer industry.
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