SECI Conducts First-ever Auction For Procurement of Green Ammonia

In a major milestone for India’s clean energy transition, the Solar Energy Corporation of India (SECI) has successfully conducted the country’s first-ever auction for the procurement of Green Ammonia under the National Green Hydrogen Mission. The auction, held under the SIGHT Scheme (Mode-2A), achieved a record-low price discovery of ₹55.75 per kilogram — almost half of last year’s benchmark price.

A Game-Changer for Green Hydrogen and Ammonia

The auction covers the supply of 75,000 metric tonnes per annum of Green Ammonia to Paradeep Phosphates Limited, Odisha. This is just the first of 13 planned auctions scheduled over the coming month, with a cumulative annual procurement target of 7.24 lakh metric tonnes.

The discovered price of ₹55.75/kg (USD 641/MT) marks a significant fall from the ₹100.28/kg (USD 1,153/MT) price discovered in the H2Global auction in 2024. For comparison, Grey Ammonia prices stood at USD 515/MT as of March 2025. The competitive pricing in this auction offers a 10-year fixed-price contract, making it financially attractive for industries to switch to green alternatives.

Strong Investor Confidence

The auction saw intense competition from developers, signaling robust investor confidence in India’s renewable energy framework. SECI acted as the intermediary procurer, working under the Ministry of New & Renewable Energy (MNRE) and in close collaboration with the Department of Fertilizers.

The payment security mechanisms built into the scheme are expected to further boost developer confidence, ensuring a stable environment for long-term investments in green fuels.

Implications for India’s Green Energy Goals

The price discovery is being hailed as a watershed moment for India’s Green Hydrogen journey, demonstrating that clean fuel alternatives can be competitive with traditional fossil-based products. The government’s vision is to position India as a global hub for Green Hydrogen production and derivatives like Green Ammonia, which are crucial for decarbonizing sectors such as fertilizers, shipping, and heavy industries.

With production costs now approaching parity with conventional fuels, industries have a strong economic incentive to adopt green ammonia and reduce their carbon footprint.

The Road Ahead

The SECI auction is the first step in a larger plan to ramp up domestic production of Green Ammonia and reduce dependency on fossil-based imports. As the remaining 12 auctions roll out in the coming weeks, analysts expect further price stabilization and increased participation from global players.

By unlocking economies of scale and ensuring long-term price security, India is paving the way for large-scale adoption of green fuels, reinforcing its commitment to achieving net-zero emissions by 2070.