SECI’s Green Ammonia Tender Aims to Transform India’s Fertilizer Sector

In a defining moment for India’s clean energy transition, the Solar Energy Corporation of India Ltd (SECI) has issued a landmark green ammonia offtake tender, targeting one of the country’s most carbon-intensive sectors — fertilizer production. This bold move under the Strategic Interventions for Green Hydrogen Transition (SIGHT) Scheme – Mode 2A, Tranche I, is poised to accelerate the decarbonisation of India’s vast agricultural input landscape, offering a transformative blueprint for climate resilience and energy security.

Landmark Clean Energy Initiative Set to Slash Emissions and Boost Self-Reliance

The tender, issued on June 7, 2024, calls for the annual production and supply of 724,000 tonnes of green ammonia to 13 fertilizer plants across India. The goal? To replace fossil fuel-derived grey ammonia with a clean, domestic alternative powered by green hydrogen — a move that could redefine the fertilizer sector’s emissions profile.

This is not just any tender. It marks the first of its kind at this scale, creating a long-term, bankable market for green ammonia by offering 10-year offtake agreements through SECI’s demand aggregation model. It sends a strong message to both domestic and global markets: India is ready to lead the clean hydrogen revolution.

Tackling Fertilizer Sector Emissions

Ammonia plays a critical role in the production of urea and nitrogen-based fertilizers, which are foundational to India’s food security. However, ammonia production is currently responsible for substantial greenhouse gas (GHG) emissions, as it relies on hydrogen sourced from imported natural gas.

This tender offers a game-changing solution. Green ammonia, derived by using renewable energy to produce hydrogen, emits less than 2 kg of CO₂ per kg of hydrogen, as opposed to up to 12 kg CO₂ from traditional grey hydrogen. The shift is expected to significantly reduce carbon emissions, foreign energy dependence, and vulnerability to global gas price shocks.

Strategic Incentives for a Clean Market

To support financial viability, the Government of India has embedded attractive production-linked incentives (PLIs) for green hydrogen under the National Green Hydrogen Mission. The structure offers subsidies of:

• ₹8.82/kg in Year 1
  
• ₹7.06/kg in Year 2
  
• ₹5.30/kg in Year 3
  

This adds up to a total incentive outlay of ₹1,533.4 crore, a powerful nudge for green ammonia producers to step up and scale fast.

In parallel, a robust Payment Security Mechanism (PSM) ensures that suppliers will receive timely payments from fertilizer companies, eliminating a key risk for investors and lenders. By de-risking cash flows, the PSM is set to catalyze broader private sector participation in green hydrogen infrastructure.

Competitive, Transparent Price Discovery

The bidding process will follow SECI’s e-reverse auction model, a format proven to deliver highly competitive pricing in solar and wind markets. This transparent system ensures efficient capital allocation and consumer value while accelerating market-driven innovation.

The final date for bid submission is June 26, 2025, after which SECI will evaluate and award contracts that promise both environmental and economic returns.

Meeting National Priorities with Global Impact

India currently consumes 17–19 million tonnes of ammonia annually, with over 50% of hydrogen demand driven by the fertilizer sector alone. Yet, much of this hydrogen is derived from imported fossil fuels, leaving the nation exposed to volatile geopolitics and currency shocks.

This tender is designed to shift that balance — by using renewable-powered electrolysis to generate hydrogen domestically and converting it into green ammonia, India strengthens its energy independence, reduces trade deficits, and improves agro-industrial sustainability.

Stimulating the Hydrogen Ecosystem

Beyond the fertilizer sector, this initiative addresses a foundational challenge in the hydrogen economy: the “chicken-and-egg” dilemma. Investors hesitate to back hydrogen projects due to uncertain demand, while demand remains limited due to supply risks.

SECI’s demand-led approach simultaneously stimulates both supply and demand, unlocking investment in:

• Electrolyser manufacturing
  
• Renewable energy integration
  
• Ammonia production and logistics
  
• Hydrogen storage and infrastructure
  

This initiative also supports employment creation, skilling, and industrial capacity-building — all aligned with the vision of “Viksit Bharat”, a developed, green, and self-reliant India.

A Decade-Defining Climate Commitment

This tender is a major leap forward in India’s commitment to net-zero carbon emissions by 2070, and a cornerstone of the National Green Hydrogen Mission, which envisions India becoming a global hub for green hydrogen production and export.

SECI, a Navratna public sector undertaking under the Ministry of New & Renewable Energy (MNRE), has earned its reputation by pioneering solar and wind energy markets in India. With this green ammonia tender, it once again positions itself at the cutting edge of clean energy market creation.

Building Fertile Ground for Innovation

By enabling large-scale offtake agreements, SECI ensures that innovation doesn’t stay stuck in R&D labs, but reaches India’s farms, industries, and ports. Fertilizer manufacturers, too, benefit from decarbonised inputs, boosting their ESG ratings and aligning with future carbon border regulations that global markets are beginning to enforce.

The programme also opens doors for startups and MSMEs to innovate around hydrogen logistics, ammonia conversion technologies, and rural renewable energy systems — a vast supply chain waiting to be greened.

Greening the Growth Story

India’s green ammonia tender is not just an energy project — it’s a strategic pivot toward sustainable growth, resilience, and global leadership in clean technology. With robust policy, financial incentives, and transparent execution, SECI is laying down a scalable model for clean industrial transformation.

As bidders prepare to submit their proposals, the message is clear: India is serious about climate action, serious about innovation, and serious about building a future where growth and green go hand-in-hand.

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