SECI Green Ammonia Tender To Decarbonise Fertiliser Sector: A Strategic Shift Towards Sustainability

India is taking a bold step towards sustainable agriculture and energy security. The Solar Energy Corporation of India Limited (SECI), a Navratna Central Public Sector Undertaking under the Ministry of New and Renewable Energy, has issued a significant tender to promote green ammonia production. This initiative not only supports the National Green Hydrogen Mission but also tackles the twin challenges of climate change and import dependence, marking a critical transition in India’s fertiliser sector.

SECI Green Ammonia Tender: Transforming India’s Fertiliser Sector

The SECI green ammonia tender calls for the annual supply of 7,24,000 tonnes of green ammonia to 13 fertiliser plants across the country. This is part of the Strategic Interventions for Green Hydrogen Transition (SIGHT) Scheme - Mode 2A, Tranche I. The final submission date for bids is June 26, 2025, following its issuance on June 7, 2024.

This tender represents a shift in how India aims to meet its hydrogen needs currently met largely through fossil fuels and leverages renewable energy to produce green hydrogen and green ammonia for low-emission fertiliser production.

Assured Market Through Long-Term Offtake Agreements

SECI will play the role of a demand aggregator and will enter into long-term offtake agreements with selected producers, offering a 10-year contract term. This provides a stable demand framework and market certainty to investors and manufacturers alike, enabling them to scale up green ammonia production with confidence.

Financial Incentives To Promote Viability

To boost participation and ensure commercial viability, the government has introduced substantial financial support through Production Linked Incentives (PLI). The incentives are structured as follows:

• ₹8.82 per kg in the 1st year
• ₹7.06 per kg in the 2nd year
• ₹5.30 per kg in the 3rd year

The total incentive outlay stands at ₹1,533.4 crore under the National Green Hydrogen Mission.

Payment Security Mechanism For De-Risking

A strong Payment Security Mechanism (PSM) has been committed by the Government of India. This ensures timely payments from fertiliser companies, providing cash flow certainty for green ammonia suppliers and encouraging broader investment from the private sector.

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Transparent Price Discovery With E-Reverse Auction

The tender will adopt SECI’s proven e-reverse auction model, known for its transparency and competitiveness. This digital-first approach ensures efficient price discovery and levels the playing field for all bidders.

Reducing Import Dependence And Trade Deficit

India currently consumes 17 to 19 million tonnes of ammonia annually, with over 50% of the hydrogen used in fertiliser production. A significant portion of this comes from imported natural gas, exposing the country to global price volatility.

Green hydrogen production via renewable sources emits under 2 kg of CO₂ per kg, compared to nearly 12 kg of CO₂ from conventional grey hydrogen, offering an eco-friendly and economically stable alternative.

Enhancing Energy Resilience And Job Creation

By encouraging domestic production, the initiative reduces India's reliance on international supply chains, especially during geopolitical disruptions. Moreover, it is expected to create employment opportunities across the clean energy, manufacturing, and infrastructure sectors.

Stimulating Both Supply And Demand In The Hydrogen Ecosystem

One of the biggest challenges in scaling up the hydrogen economy is the “chicken-and-egg” problem: whether supply should precede demand or vice versa. SECI’s tender addresses both ends by creating immediate demand while ensuring incentives and market support for supply, thereby unlocking investment in electrolysers and allied industries.

Conclusion 

This green ammonia initiative aligns with India’s commitment to achieve net-zero carbon emissions by 2070. It strengthens the foundations of Viksit Bharat, a vision for a developed, sustainable, and self-reliant nation.

SECI continues to lead clean energy initiatives with innovation and transparency, and this tender marks yet another milestone in India’s energy transition journey.

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