SECI Launches Green Ammonia Tender to Decarbonise Fertiliser Sector

In a major push towards industrial decarbonisation, the Solar Energy Corporation of India (SECI) has launched a tender for the procurement of 724,000 tonnes of green ammonia annually, targeting 13 fertiliser plants across the country.

The move, under the Ministry of New and Renewable Energy’s (MNRE) Strategic Interventions for Green Hydrogen Transition (SIGHT) Scheme, Mode 2A, Tranche I, is seen as a game-changer for India’s fertiliser sector, which is currently heavily reliant on fossil-fuel-based ammonia.

The deadline to submit bids for the tender is June 26. Structured around a 10-year offtake model, SECI will serve as the demand aggregator, providing market stability through long-term contracts with green ammonia producers. To boost bidder confidence and safeguard against potential payment delays from fertilizer companies, the initiative is supported by a strong Payment Security Mechanism (PSM) put in place by the Government of India.

Green ammonia, produced using renewable energy-driven electrolysis, offers a low-emission alternative to conventional ammonia, which contributes significantly to industrial CO₂ emissions. India currently consumes 17-19 million tonnes of ammonia annually, with over half of its hydrogen needs met through imported natural gas. SECI’s tender aims to reduce this dependency, stabilise domestic fertilizer production costs, and insulate the sector from global gas price shocks.

To ensure financial feasibility, the government is offering attractive Production Linked Incentives (PLI) for the first three years viz. INR 8.82/kg, INR 7.06/kg, and INR 5.30/kg, amounting to INR 1,533.4 crore in total support. The bidding process will be conducted through SECI’s signature e-reverse auction model, encouraging competitive price discovery.

The initiative not only supports India’s climate goals, including the net-zero emissions target by 2070, but also aligns with the vision of a self-reliant and developed 'Viksit Bharat'. As per the statement,  SECI’s green ammonia tender addresses the 'chicken-and-egg' challenge facing the hydrogen economy by simultaneously stimulating demand and supply. It creates an immediate demand pull that encourages investment in green hydrogen production, electrolyser manufacturing, and allied clean energy sectors.

SECI’s move marks a significant leap in India’s energy transition and reaffirms its position as a pioneer in clean energy innovation on the global stage.