Solar Energy Corp. of India Ltd. has issued a landmark tender seeking long-term offtake of 724,000 tonnes of green ammonia annually, a move aimed at decarbonizing the country’s fertilizer industry and reducing reliance on fossil fuels.
Under the Strategic Interventions for Green Hydrogen Transition Scheme, the tender will support the production of green ammonia for 13 fertilizer plants and is expected to play a crucial role in reducing the sector’s carbon footprint.
Market Certainty and Government Backing
SECI, a ‘Navratna’ public sector enterprise under the Ministry of New and Renewable Energy, will serve as the demand aggregator, signing 10-year offtake agreements to ensure market stability for producers.
The tender, issued on June 7, 2024, closes for bid submissions on June 26, 2025.
To bolster financial viability, the Indian government is providing production-linked incentives of ₹8.82/kg, ₹7.06/kg, and ₹5.30/kg for the first three years, respectively.
Total financial support under the National Green Hydrogen Mission amounts to ₹1,533.4 crore ($183.5 million).
A payment security mechanism will be implemented to mitigate payment risks, offering suppliers protection against potential delays from fertilizer companies.
Transitioning From Grey to Green
Ammonia, a key input in urea and other fertilizers, is currently produced using grey hydrogen derived from natural gas — an energy-intensive process with high carbon emissions.
Green ammonia, produced using renewable energy to split water into hydrogen and oxygen, emits less than 2 kg of carbon dioxide per kg of hydrogen compared to up to 12 kg from conventional methods.
India consumes around 17–19 million tonnes of ammonia each year, with over half of the hydrogen demand going to fertilizer production.
Most of this hydrogen is currently imported or derived from fossil fuels. SECI’s initiative is expected to reduce India’s dependency on natural gas imports and exposure to global price volatility.
Competitive Bidding and Broader Impact
The bidding will be conducted through SECI’s e-reverse auction platform to ensure transparency and competitive pricing.
By simultaneously stimulating both demand and supply, the tender addresses a significant bottleneck in the green hydrogen economy.
It is anticipated that unlocking investment across the hydrogen value chain — from electrolyzer manufacturing to renewable energy deployment — will create employment opportunities.
The tender supports India’s broader climate goals, including achieving net-zero emissions by 2070 and advancing the government’s “Viksit Bharat” vision of a sustainable, developed nation.
SECI has called on industry players to submit competitive proposals, reinforcing its commitment to pioneering clean energy markets through innovation and transparency.
The initiative is widely regarded as a crucial step toward reducing emissions in hard-to-abate sectors and enhancing domestic resilience in a rapidly evolving global energy landscape.
