Has SECI Extended the Deadline for Green Ammonia Tender Bids?

New Delhi, June 25 (NationPress) The Solar Energy Corporation of India Limited (SECI) has officially announced an extension for bid submissions in its current tender focused on the production and supply of green ammonia, now set for June 30, 2025. This extension was revealed on Wednesday.

The tender, which was first issued on June 7, had originally set the bid submission deadline for June 26.

This initiative seeks the production and supply of 724,000 tonnes of green ammonia each year across 13 fertiliser plants, all under the Strategic Interventions for Green Hydrogen Transition (SIGHT) scheme. The procurement of green ammonia aims to significantly lower the country’s carbon footprint in fertiliser production.

SECI, a Navratna Central Public Sector Undertaking governed by the Ministry of New and Renewable Energy (MNRE), will lead the demand aggregation and establish long-term offtake agreements, providing producers with market assurance over a decade-long contract.

Currently, ammonia, a vital ingredient in urea and other nitrogen-based fertilizers, is produced using fossil fuels, resulting in considerable greenhouse gas emissions. SECI’s tender promotes the use of renewable energy to generate green hydrogen and ammonia, facilitating low-emission domestic fertilizer production.

To support financial feasibility, the government is implementing financial incentives through the National Green Hydrogen Mission, offering Production Linked Incentives (PLI) of Rs 8.82/kg, Rs 7.06/kg, and Rs 5.30/kg for the initial three years, totaling a support of Rs 1,533.4 crore.

Furthermore, the government is dedicated to a comprehensive payment security framework to mitigate potential payment delays from fertilizer companies. This assurance promotes steady cash flow for suppliers, thereby encouraging increased participation and financing. The bidding process will adopt SECI’s e-reverse auction model for competitive and transparent price discovery.

India’s annual ammonia consumption is approximately 17-19 million tonnes, with over 50% of its hydrogen needs utilized in fertilizer production, primarily sourced from imported natural gas. SECI’s initiative is projected to significantly reduce this reliance, lessen exposure to global gas price fluctuations, and improve the trade deficit. Producing green hydrogen emits less than 2 kg of carbon dioxide per kilogram, compared to up to 12 kg from conventional grey hydrogen.

The domestic production of green ammonia is anticipated to bolster resilience during geopolitical disruptions and create new employment prospects.

“SECI’s green ammonia tender tackles the 'chicken-and-egg' dilemma in the hydrogen economy by fostering simultaneous demand and supply. It generates an immediate demand that promotes investment in green hydrogen production, electrolyser manufacturing, and related clean energy sectors,” an official statement remarked.

This initiative represents a crucial step towards India’s objective of achieving net-zero carbon emissions by 2070, according to the statement.