The Solar Energy Corporation of India (SECI) has extended the deadline for bids on its green ammonia tender. The new date is June 30, 2025. This initiative falls under the Strategic Interventions for Green Hydrogen Transition (SIGHT) scheme. The project aims to supply 724,000 tonnes of green ammonia each year to 13 fertilizer plants.
Green ammonia is a cleaner alternative to traditional ammonia, which is made using fossil fuels. Currently, ammonia production is a major source of greenhouse gas emissions. This tender marks a shift towards using renewable energy for ammonia production. This is part of a broader effort by the Indian government to promote clean energy in agriculture.
Bidders for the tender must establish their own production facilities. They will be responsible for securing all necessary approvals and permits, including land acquisition. The production, storage, and delivery of green ammonia will also be managed by the bidders. However, they can source up to 10% of their annual capacity from third parties.
The tender encourages the use of renewable energy from projects that can be either co-located or remotely located. Producers may also acquire renewable energy from power exchanges. SECI will provide long-term contracts to ensure stability for producers. The contracts will last for ten years.
To participate in the bidding process, companies must submit a document fee of ₹25,000 (approximately $288) and a bid processing fee of ₹1.5 million (approximately $18,000). Additionally, an earnest money deposit of ₹5,000 (approximately $58) per metric tonne is required. Once selected, bidders must pay a performance bank guarantee of ₹7,500 (approximately $86) per metric tonne before signing the purchase agreement.
Producers will receive incentives for their production. In the first year, they will receive ₹8.82 (approximately $0.101) per kilogram of green ammonia. The second year will see this decrease to ₹7.06 (approximately $0.081) per kilogram. In the third year, it will be ₹5.30 (approximately $0.061) per kilogram. The total incentive budget is ₹15.3 billion (approximately $176.2 million).
To qualify for the tender, bidders must have a minimum net worth of ₹50 million (approximately $576,116) for every 1,000 metric tonnes of annual capacity they plan to produce and supply. This ensures that only financially stable companies can participate.
This initiative is a part of India’s National Green Hydrogen Mission, which has a budget of ₹197.4 billion (approximately $2.3 billion) until 2029-30. The SIGHT program, under this mission, has an allocation of ₹174.9 billion (approximately $2.01 billion).
With this tender, India aims to boost its domestic fertilizer production while reducing reliance on imported fossil fuels. The demand for ammonia in India is between 17 to 19 million tonnes annually. By shifting to green ammonia, India can also cut down its carbon emissions significantly. Traditional methods of producing hydrogen for ammonia release up to 12 kg of CO₂ for every kg of hydrogen produced. In contrast, green hydrogen emits less than 2 kg of CO₂.
This new approach not only fosters sustainable agricultural practices but also strengthens India’s energy security. The SECI’s tender represents a major step towards a greener future for the agricultural sector in India. It is expected to attract many interested bidders, enhancing competition and innovation in the green ammonia market.