SECI Floats Landmark Green Ammonia Tender to Decarbonize Fertilizer Sector

In a significant push towards low-carbon industrial transformation, the Solar Energy Corporation of India (SECI) has floated a landmark green ammonia tender to supply 724,000 tonnes annually across 13 fertilizer plants. This move, part of the SIGHT Scheme (Mode 2A, Tranche I) under the National Green Hydrogen Mission, is a game-changer for the decarbonization of India’s highly energy-intensive fertilizer industry and supports the national vision of Viksit Bharat @2047 and Net Zero by 2070.

Why in News?

On 23rd June 2025, SECI announced the opening of bids for its green ammonia offtake tender, with the final submission deadline on 26th June 2025. Backed by the Ministry of New and Renewable Energy, this is India’s most ambitious move yet to integrate green hydrogen into its fertilizer sector, a major consumer of fossil-fuel-based hydrogen. The tender guarantees 10-year offtake contracts, backed by financial incentives and a Payment Security Mechanism, ensuring investor confidence and scalability.

Aim and Objectives

• Decarbonize fertilizer production by replacing fossil-fuel-based ammonia with green ammonia.
• Promote domestic production of green hydrogen and reduce dependence on imported natural gas.
• Stimulate the hydrogen economy by creating a synchronized demand-supply ecosystem.

Key Features of the Tender

• Issued by: Solar Energy Corporation of India (SECI), a Navratna CPSE under MNRE.
• Volume: 724,000 tonnes of green ammonia annually.
• Plants Covered: 13 fertilizer manufacturing units across India.
• Duration: 10-year offtake agreement.
• Under Scheme: Strategic Interventions for Green Hydrogen Transition (SIGHT) – Mode 2A, Tranche I.

Financial and Operational Support

• Incentives under National Green Hydrogen Mission
• Total PLI support: ₹1,533.4 crore
• Payment Security Mechanism (PSM) to de-risk potential payment delays from buyers.
• E-reverse auction model to ensure transparent price discovery.

Environmental Impact

• Green hydrogen emits <2 kg CO₂/kg, vs. 12 kg CO₂/kg from grey hydrogen.
• Reduces GHG emissions in fertilizer production, supports Net Zero by 2070.
• 🇮🇳 National and Economic Relevance:
  India uses 17–19 million tonnes of ammonia annually, much of it from imported gas.

Green ammonia will,

• Lower exposure to global gas volatility
• Improve energy security
• Create green jobs in electrolyser manufacturing and supply chains

Strategic Importance

• Tackles the chicken-and-egg challenge of the hydrogen economy by aligning production and demand.
• Encourages private sector participation through market certainty and government-backed support.
• Positions India as a global leader in green hydrogen innovation and adoption.