The Business Bytes
THEBUSINESSBYTES BUREAU
NEW DELHI, JUNE 23, 2025
In a defining move to transform India’s fertilizer industry and catalyze the nation’s clean energy transition, the Solar Energy Corporation of India Limited (SECI) has floated a historic tender for the annual supply of 724,000 tonnes of green ammonia. This trailblazing initiative, launched under the Strategic Interventions for Green Hydrogen Transition (SIGHT) Scheme – Mode 2A, Tranche I, marks a bold step towards decarbonizing a sector heavily dependent on fossil fuels.
A Navratna Central Public Sector Undertaking under the Ministry of New and Renewable Energy (MNRE), SECI is spearheading the tender process with final bid submissions due on June 26, 2025. The tender covers supply to 13 fertilizer plants across the country and represents one of the most ambitious government-backed initiatives in the global green ammonia market to date.
Ammonia, a vital ingredient in urea and other nitrogen-based fertilizers, is traditionally produced using grey hydrogen derived from fossil fuels, particularly imported natural gas. This process contributes significantly to carbon emissions. SECI’s latest initiative is poised to change that by leveraging renewable energy sources to produce green hydrogen and, subsequently, green ammonia — dramatically reducing emissions and dependency on volatile global gas markets.
To ensure commercial feasibility and attract robust industry participation, the government is providing generous financial support under the National Green Hydrogen Mission. Production Linked Incentives (PLI) have been pegged at ₹8.82 per kg in the first year, ₹7.06 per kg in the second, and ₹5.30 per kg in the third — cumulatively offering an incentive pool of ₹1,533.4 crore. Additionally, a strong Payment Security Mechanism (PSM) backed by the Government of India will cushion suppliers against payment uncertainties from fertilizer companies, ensuring liquidity and enhancing bankability.
SECI will act as the demand aggregator and sign long-term offtake agreements with producers for a 10-year period, providing a stable, assured market for investors. The reverse e-auction format will ensure transparent and competitive price discovery, continuing SECI’s track record of fostering trust and innovation in India’s clean energy market.
India’s current annual ammonia consumption stands at 17–19 million tonnes, more than half of which relies on hydrogen from imported natural gas. By localizing production through green ammonia, India aims to reduce import dependence, stabilize domestic fertilizer pricing, and strengthen its energy security. Notably, green hydrogen production emits less than 2 kg of CO₂ per kilogram, compared to up to 12 kg from grey hydrogen — a monumental leap in emission reduction.
The tender is not just a policy push; it is a catalyst. It directly addresses the long-standing “chicken-and-egg” dilemma of the green hydrogen economy by simultaneously stimulating both supply and demand. This is expected to unlock downstream investments in electrolysers, renewable energy, and green fuel infrastructure, while also creating employment opportunities in emerging clean tech sectors.
SECI’s green ammonia tender stands as a beacon of India’s commitment to achieving net-zero carbon emissions by 2070. It embodies the government’s larger Viksit Bharat vision — building a sustainable, self-reliant, and globally competitive India.
