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The Solar Energy Corporation of India Limited (SECI) has unveiled a landmark tender aimed at transforming India’s fertilizer sector by producing green ammonia. This initiative is a key part of the country's broader strategy to decarbonize critical industries while advancing its green hydrogen economy.

Transition to Low-Emission Fertilizer Production

Currently, ammonia is produced using fossil fuels, contributing significantly to greenhouse gas emissions. SECI’s green ammonia tender, which calls for the production of 724,000 tonnes annually across 13 fertilizer plants, will shift the sector towards a low-emission model by using renewable energy to generate green hydrogen. This transition will help reduce the carbon footprint of fertilizers, a critical component in agriculture, while also driving India’s push for cleaner energy alternatives.

Government Incentives to Encourage Industry Participation

To support the transition, the Indian government has committed substantial financial incentives under the National Green Hydrogen Mission. Production-linked incentives (PLI) totaling ₹1,533.4 crore, along with a Payment Security Mechanism (PSM), will help reduce financial risks and ensure steady cash flow for suppliers. The e-reverse auction model used for bidding guarantees competitive pricing, encouraging industry players to bring forward their most efficient and cost-effective solutions.