SECI Invites Bids for Green Ammonia Supply to Fertilizer Plants in India
Key Ideas
- Solar Energy Corporation of India (SECI) opens bids for supply of 724,000 MT of green ammonia annually to 13 Indian fertilizer plants under the SIGHT program.
- Producers must establish production facilities, secure approvals, and ensure production, storage, and delivery, with incentives provided for the first three years.
- SECI charges trading margin, requires financial commitments, and sets incentives totaling ₹15.3 billion for the green ammonia supply over ten years.
- This initiative is part of the National Green Hydrogen Mission in India, which aims to promote green hydrogen production with a significant budget allocation.
The Solar Energy Corporation of India (SECI) has initiated a bidding process for the supply of 724,000 metric tons (MT) of green ammonia annually to 13 Indian fertilizer plants under the Strategic Interventions for Green Hydrogen Transition (SIGHT) program. Producers participating in the bid process are required to establish production facilities, secure all necessary approvals, and manage the entire production, storage, and delivery process. The green ammonia supplied must be directly produced by the awarded producers, with limited third-party sourcing allowed. The production of green ammonia is encouraged to be powered by renewable energy sources.
The bidding process involves financial commitments from the producers, including document fees, bid processing fees, and performance bank guarantees. Incentives are provided by SECI, amounting to ₹15.3 billion over ten years, with the producers receiving an incentive for the first three years of the supply. The National Green Hydrogen Mission in India, with a significant budget allocation, including for the SIGHT program, aims to boost green hydrogen production and adoption in the country. This initiative signifies a positive step towards achieving cleaner energy production and reducing the carbon footprint in the fertilizer industry.