The Solar Energy Corporation of India Limited (SECI), a ‘Navratna’ Central Public Sector Undertaking under the Ministry of New and Renewable Energy (MNRE), has floated a landmark tender for the offtake of green ammonia. The initiative aims to decarbonize India’s fertilizer sector by introducing low-emission alternatives to conventional, fossil fuel-based ammonia production.
Issued on June 7, 2024, the tender calls for the production and supply of 724,000 tonnes of green ammonia annually, to be delivered across 13 fertilizer plants. The procurement will be carried out under Mode 2A, Tranche I of the Strategic Interventions for Green Hydrogen Transition (SIGHT) Scheme. Final bid submissions are due by June 26, 2025.
Ammonia, a key input for urea and other nitrogen-based fertilizers, is currently produced using energy-intensive methods that contribute significantly to greenhouse gas emissions. Through this tender, SECI seeks to facilitate a shift towards green ammonia produced from renewable energy-powered hydrogen—positioning it as a cleaner alternative in the fertilizer value chain.
To ensure market stability and attract investor interest, SECI will aggregate demand and enter into long-term offtake agreements with selected suppliers for a period of 10 years. This framework offers market certainty and encourages infrastructure investment in green hydrogen and ammonia production.
The initiative is backed by the National Green Hydrogen Mission, which includes financial incentives to bolster production. Suppliers will receive Production Linked Incentives (PLI) of ₹8.82/kg, ₹7.06/kg, and ₹5.30/kg for the first, second, and third years respectively, totaling government support of ₹1,533.4 crore.
Further de-risking the project, the Government of India has committed a robust Payment Security Mechanism (PSM) to mitigate delays in payments by fertilizer companies—offering suppliers greater assurance and financial stability. The bidding process will follow SECI’s e-reverse auction model to promote transparency and competitive price discovery.
The tender is expected to spur domestic green ammonia manufacturing, reduce reliance on imports during geopolitical uncertainties, and create employment opportunities across clean energy sectors.
