India Issues Landmark Tender for Green Ammonia to Decarbonize Fertilizer Sector

Strategic Insights -

The Solar Energy Corporation of India Limited (SECI) has issued a critical tender for the offtake of green ammonia to decarbonize India's fertilizer sector. The tender aims to produce 724,000 tonnes of green ammonia annually across 13 fertilizer plants under the Strategic Interventions for Green Hydrogen Transition (SIGHT) Scheme. This initiative is expected to drastically reduce India's dependence on imported natural gas, lower the trade deficit, and create new employment opportunities.

Key Takeaways:

  • The tender for offtake of green ammonia aims to produce 724,000 tonnes annually across 13 fertilizer plants.
  • The Strategic Interventions for Green Hydrogen Transition (SIGHT) Scheme is the program under which the tender is issued.
  • The government is offering financial incentives under the National Green Hydrogen Mission, with Production Linked Incentives (PLI) of Rs.8.82/kg, Rs.7.06/kg, and Rs.5.30/kg for the first three years.
  • The Payment Security Mechanism (PSM) is committed by GOI to de-risk potential payment delays from fertilizer companies.
  • The bidding process will follow SECI's e-reverse auction model, ensuring competitive and transparent price discovery.
  • India consumes approximately 17-19 million tonnes of ammonia annually, with most of its hydrogen requirement used in fertilizer production.
  • Producing green hydrogen emits less than 2 kg of CO2 per kilogram, compared to up to 12 kg CO2 from conventional grey hydrogen.
  • Domestic green ammonia production is expected to enhance resilience during geopolitical disruptions.
  • The tender addresses the "chicken-and-egg" challenge facing the hydrogen economy by simultaneously stimulating demand and supply.

Statistics:

  • India consumes 17-19 million tonnes of ammonia annually.
  • Most of India's hydrogen is used in fertilizer production, with an estimated 724,000 tonnes expected to be produced through green ammonia.
  • Producing green hydrogen emits less than 2 kg of CO2 per kilogram, compared to up to 12 kg CO2 from conventional grey hydrogen.
  • The National Green Hydrogen Mission offers Production Linked Incentives (PLI) of Rs.8.82/kg, Rs.7.06/kg, and Rs.5.30/kg for the first three years, amounting to a total support of Rs.1,533.4 crore.
  • The Payment Security Mechanism (PSM) committed by GOI is intended to de-risk potential payment delays from fertilizer companies.

Sources:

  • Tiol News Service, NEW DELHI, JUNE 24, 2025
  • Solar Energy Corporation of India Limited (SECI)
  • Ministry of New and Renewable Energy (MNRE)
  • National Green Hydrogen Mission
  • Strategic Interventions for Green Hydrogen Transition (SIGHT) Scheme