Is the Indian Government Ready to Transform Fertilizer Production with Green Ammonia?
Click to start listening
Synopsis
India's SECI launches a historic tender for green ammonia to revolutionize fertilizer production, aiming to cut carbon emissions and foster a sustainable hydrogen economy. This initiative sets the stage for a greener future in agriculture, aligning with the nation's net-zero goals by 2070.
Key Takeaways
- SECI's tender aims for 724,000 tonnes of green ammonia annually.
- Financial incentives are provided to ensure viability.
- Production of green ammonia could drastically reduce carbon emissions.
- Domestic production enhances resilience and job creation.
- This initiative aligns with India's net-zero carbon emissions goal by 2070.
New Delhi, June 23 (NationPress) The Solar Energy Corporation of India Limited (SECI) has initiated a groundbreaking tender for the provision of green ammonia, targeting the decarbonization of India’s fertilizer industry.
With bid submissions approaching, this tender seeks the annual production and supply of 724,000 tonnes of green ammonia across 13 fertilizer plants, integrated within the Strategic Interventions for Green Hydrogen Transition (SIGHT) Scheme.
SECI, a Navratna Central Public Sector Undertaking under the Ministry of New and Renewable Energy (MNRE), is set to facilitate demand aggregation and will establish long-term offtake agreements, ensuring producers have market stability over a decade-long contract. The tender was launched on June 7, with the deadline for bid submissions on June 26.
Ammonia, a vital component in urea and various nitrogen-based fertilizers, is presently derived from fossil fuels, contributing to significant greenhouse gas emissions. SECI’s tender aims to harness renewable energy for the production of green hydrogen and ammonia, fostering low-emission, domestic fertilizer manufacturing.
To boost financial feasibility, the government is providing incentives under 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, cumulatively amounting to Rs 1,533.4 crore. Moreover, the government is establishing a comprehensive payment security framework to mitigate potential payment delays from fertilizer companies, thereby ensuring a reliable cash flow for suppliers and encouraging further investment. The bidding will adopt SECI’s e-reverse auction model to guarantee competitive and transparent pricing.
India's annual ammonia consumption is about 17-19 million tonnes, with over half of its hydrogen needs sourced for fertilizer production. However, a significant portion of this is reliant on imported natural gas. SECI’s initiative is projected to drastically lessen this dependence, mitigate exposure to global gas price volatility, and reduce the trade deficit. The production of green hydrogen emits less than 2 kg of CO2 per kilogram, in stark contrast to up to 12 kg CO2 from conventional grey hydrogen.
Domestic green ammonia production is anticipated to bolster resilience during geopolitical challenges and create new job opportunities.
“SECI’s green ammonia initiative tackles the 'chicken-and-egg' dilemma of the hydrogen economy by concurrently enhancing both demand and supply. It generates an immediate demand pull that promotes investment in green hydrogen production, electrolyser manufacturing, and associated clean energy sectors,” stated an official announcement.
This initiative marks a crucial step towards India’s objective of achieving net-zero carbon emissions by 2070, as highlighted in the statement.
Point of View
SECI's tender for green ammonia represents a significant step toward a sustainable agricultural future. As India grapples with environmental challenges and energy dependencies, this initiative not only promotes local production but also strengthens the economy while committing to global climate goals. The government’s strategic approach offers hope for a cleaner, greener future.
NationPress
23/06/2025
Frequently Asked Questions
What is the purpose of SECI's green ammonia tender?
The tender aims to decarbonize India's fertilizer sector by enabling the production of green ammonia, which is essential for sustainable agricultural practices.
How much green ammonia is being targeted?
The tender seeks an annual production and supply of 724,000 tonnes of green ammonia across 13 fertilizer plants.
What incentives are being provided to support this initiative?
The government is offering Production Linked Incentives (PLI) under the National Green Hydrogen Mission, totaling Rs 1,533.4 crore for the initial three years.
How does green ammonia production impact carbon emissions?
Producing green ammonia emits significantly less carbon compared to conventional methods, aiming to reduce India's overall greenhouse gas emissions.
What are the broader implications of this initiative?
This initiative is expected to enhance energy independence, reduce reliance on imported fossil fuels, and create job opportunities in the green economy.
