The SECI furthers with green ammonia supply agreements aiming at decarbonization
The Solar Energy Corporation of India (SECI), a Central Public Sector Enterprise with Navratna status under the Ministry of New and Renewable Energy (MNRE), has invited bids for the annual supply of 724,000 tonnes of green ammonia to 13 fertiliser plants across the country. This initiative, launched under the Strategic Interventions for Green Hydrogen Transition (SIGHT) scheme, represents a significant step toward reducing emissions in India’s fertiliser sector, which has long relied on fossil fuels. SECI will aggregate the demand and enter into long-term agreements with selected producers for a duration of ten years. The deadline for bid submissions has been set for June 26, 2025.
Ammonia, a key component in urea and other nitrogen-based fertilisers, is currently produced using fossil fuels, contributing substantially to greenhouse gas emissions. By promoting the use of renewable energy to produce green hydrogen and ammonia, the initiative aims to lower emissions while supporting domestic fertiliser production. To encourage participation, the government is offering financial incentives under the National Green Hydrogen Mission, including production-linked subsidies of Rs 8.82 per kg in the first year, Rs 7.06 per kg in the second, and Rs 5.30 per kg in the third, totaling Rs 1,533.4 crore in support. Additionally, a payment security mechanism has been introduced to safeguard suppliers against potential delays in payments from fertiliser companies, ensuring stable revenue streams.
India’s annual ammonia consumption stands at around 17–19 million tonnes, with the fertiliser industry accounting for more than half of the country’s hydrogen demand, most of which is currently met through imported natural gas. SECI’s move is expected to reduce this dependence, shielding the sector from volatile global gas prices and narrowing the trade deficit. The shift toward domestic green ammonia production is also anticipated to strengthen energy security amid geopolitical uncertainties while creating new employment opportunities.
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By simultaneously stimulating demand and supply, SECI’s tender addresses a critical challenge in scaling up the green hydrogen economy. This effort aligns with India’s broader commitment to achieving net-zero carbon emissions by 2070, marking a pivotal shift toward sustainable industrial practices.
