The Solar Energy Corporation of India (SECI), a Navratna Central Public Sector Undertaking under the Ministry of New and Renewable Energy, has floated a landmark tender for the offtake of green ammonia. The move marks a significant step towards decarbonizing the fertilizer sector, which is currently dependent on fossil fuel-based hydrogen for ammonia production.
The tender, issued on June 7, 2024, invites bids for the supply of 7.24 lakh tonnes of green ammonia annually. It covers 13 fertilizer plants across the country and falls under Tranche I of Mode 2A of the Strategic Interventions for Green Hydrogen Transition (SIGHT) Scheme. The last date for bid submissions is June 26, 2025.
Ammonia is a key input in the production of urea and other nitrogen-based fertilizers. At present, it is largely produced using hydrogen derived from imported natural gas, leading to considerable carbon emissions. SECI’s new tender seeks to change this by using renewable energy to produce green hydrogen and, consequently, green ammonia. The aim is to enable low-emission, domestically sourced fertilizer production.
To make the transition financially viable, the government is offering production-linked incentives under the National Green Hydrogen Mission. These include subsidies of ₹8.82 per kilogram in the first year, ₹7.06 in the second, and ₹5.30 in the third—amounting to a total support of ₹1,533.4 crore. A robust Payment Security Mechanism has also been put in place to safeguard suppliers from delays in payments by fertilizer companies.
The tender process will follow SECI’s e-reverse auction model to ensure transparency and competitive price discovery. The contracts will run for a 10-year period, providing market certainty and encouraging long-term investment.
India consumes approximately 17-19 million tonnes of ammonia annually, with more than 50% of its hydrogen requirement used in fertilizer production. However, most of this is derived from imported natural gas. SECI’s initiative is expected to drastically cut this dependence, reduce exposure to global gas price fluctuations, and lower the trade deficit. Producing green hydrogen emits less than 2 kg of CO₂ per kilogram, compared to up to 12 kg CO₂ from conventional grey hydrogen.
The tender is seen as a solution to the “chicken-and-egg” problem that has stalled progress in the hydrogen sector. By aggregating demand and securing long-term offtake agreements, SECI is aiming to provide the necessary momentum to build a strong domestic green hydrogen and ammonia ecosystem. It is also expected to support investment in electrolyser manufacturing and other clean energy segments.
