The Solar Energy Corporation of India Limited (SECI), a leading public sector enterprise under the Ministry of New and Renewable Energy (MNRE), has issued a transformative tender aimed at decarbonizing India’s fertilizer sector. The tender, part of the Strategic Interventions for Green Hydrogen Transition (SIGHT) Scheme – Mode 2A, Tranche I, calls for the production and supply of 724,000 tonnes of green ammonia annually to be distributed across 13 fertilizer plants.
The tender, which was issued on June 7, 2024, sets the stage for final bid submissions by June 26, 2025. SECI will aggregate demand and secure long-term offtake agreements, offering producers a 10-year contract and providing market certainty. This initiative is a significant step in India’s efforts to reduce its carbon footprint in the fertilizer industry.
Currently, ammonia, a key ingredient in urea and nitrogen-based fertilizers, is produced using fossil fuels, resulting in substantial greenhouse gas emissions. SECI’s initiative seeks to address this by using renewable energy to produce green hydrogen and green ammonia, significantly lowering emissions in domestic fertilizer production.
The Indian government is supporting the project with financial incentives under the National Green Hydrogen Mission. These incentives include Production Linked Incentives (PLI) of ₹8.82/kg, ₹7.06/kg, and ₹5.30/kg for the first three years, with a total support package of ₹1,533.4 crore. A Payment Security Mechanism (PSM) is also in place to ensure steady cash flow and mitigate the risk of payment delays from fertilizer companies.
India consumes between 17-19 million tonnes of ammonia each year, with over 50% of its hydrogen used in fertilizer production being sourced from imported natural gas. SECI’s green ammonia project is expected to drastically cut this reliance, reducing exposure to global gas price volatility and helping to lower the country’s trade deficit. Green hydrogen production emits less than 2 kg of CO₂ per kilogram, compared to up to 12 kg CO₂ from traditional grey hydrogen.
This domestic green ammonia initiative will not only reduce India’s carbon footprint but also build resilience against global supply chain disruptions and create new job opportunities in the clean energy sector. By addressing the “chicken-and-egg” challenge of the hydrogen economy, SECI’s tender stimulates both demand and supply of green hydrogen. This move will encourage investment in green hydrogen production, electrolyser manufacturing, and other clean energy sectors, providing a crucial foundation for future growth.
This landmark initiative supports India’s long-term vision of achieving net-zero carbon emissions by 2070. It is also aligned with the nation’s broader vision of Viksit Bharat—a developed, sustainable, and self-reliant India. SECI invites competitive proposals from bidders, encouraging the creation of innovative, transparent, and impactful clean energy solutions with global potential.
