New Delhi: In a significant stride towards a sustainable and self-reliant future, the Solar Energy Corporation of India Limited (SECI), a ‘Navratna’ Central Public Sector Undertaking under the Ministry of New and Renewable Energy (MNRE), has issued a groundbreaking tender for the offtake of Green Ammonia.
After Shri Santosh Kumar Sarangi joined as Chairman & Managing Director of SECI, this landmark initiative was taken up, which aims to decarbonize India’s critical fertilizer sector and propel the nation towards its net-zero carbon emissions target by 2070.
The tender, which has its final bid submissions due shortly on June 26, 2025, calls for the annual production and supply of a substantial 724,000 tonnes of green ammonia across 13 fertilizer plants. This ambitious project falls under the Strategic Interventions for Green Hydrogen Transition (SIGHT) Scheme – Mode 2A, Tranche I, showcasing India’s commitment to fostering a green hydrogen economy.
SECI will play a pivotal role in this transition by anchoring demand aggregation and signing long-term offtake agreements with producers. These 10-year contracts will provide crucial market certainty, de-risking investments and encouraging widespread participation.
Currently, ammonia, a vital component in urea and other nitrogen-based fertilizers, is predominantly produced using fossil fuels, leading to significant greenhouse gas emissions. SECI’s tender directly addresses this challenge by leveraging renewable energy for green hydrogen and ammonia production, thereby promoting low-emission, domestically produced fertilizers. This move is particularly impactful as India consumes approximately 17-19 million tonnes of ammonia annually, with over 50% of its hydrogen requirement currently derived from imported natural gas.
The shift to green ammonia is projected to drastically cut India’s dependence on imported natural gas, reducing exposure to volatile global gas prices and lowering the trade deficit. Furthermore, the environmental benefits are substantial: producing green hydrogen emits less than 2 kg of CO₂ per kilogram, a stark contrast to the up to 12 kg CO₂ from conventional grey hydrogen.
To ensure the financial viability and attractiveness of this initiative, the government is providing substantial support under the National Green Hydrogen Mission. Producers will benefit from Production Linked Incentives (PLI) of ₹8.82/kg, ₹7.06/kg, and ₹5.30/kg for the first three years, amounting to a total support of ₹1,533.4 crore.
Critically, the Government of India has also committed to a robust Payment Security Mechanism (PSM). This mechanism will de-risk potential payment delays from fertilizer companies, assuring suppliers of steady cash flows and fostering greater participation and easier financing for these projects. The bidding process itself will utilize SECI’s e-reverse auction model, guaranteeing a competitive and transparent price discovery.
Beyond environmental benefits, domestic green ammonia production is anticipated to enhance India’s resilience during geopolitical disruptions and generate new employment opportunities across the green energy value chain.
SECI’s green ammonia tender adeptly tackles the “chicken-and-egg” challenge often faced by the nascent hydrogen economy. By simultaneously stimulating both demand and supply, it creates an immediate market pull, encouraging much-needed investment in green hydrogen production, electrolyzer manufacturing, and allied clean energy sectors.
This initiative is a pivotal move toward India’s goal of achieving net-zero carbon emissions by 2070 and strongly supports the broader vision of Viksit Bharat – a developed, sustainable, and self-reliant India. Bidders are encouraged to submit their most competitive proposals, contributing to SECI’s established legacy of pioneering clean energy markets with innovation, transparency, and global impact.