Green ammonia auction India: SECI achieves record-low price under National Green Hydrogen Mission. Discover how India’s first green ammonia auction under the SIGHT Scheme boosts clean energy and sustainability.
SECI’s First-Ever Green Ammonia Auction Marks a Milestone in India’s Clean Energy Transition
In a groundbreaking move towards a sustainable future, the Solar Energy Corporation of India (SECI) has successfully conducted its inaugural auction for the procurement of green ammonia under the National Green Hydrogen Mission. This pioneering initiative, held under the Strategic Interventions for Green Hydrogen Transition (SIGHT) Scheme (Mode-2A), achieved a record-low price discovery of ₹55.75 per kilogram. The auction is a significant step in India’s commitment to reducing carbon emissions and promoting renewable energy sources.
Details of the Auction
The auction focused on the supply of 75,000 metric tonnes per annum (MTPA) of green ammonia to Paradeep Phosphates Limited, a major fertilizer manufacturer located in Odisha. The winning bid, priced at ₹55.75/kg, translates to approximately $641 per metric tonne, marking a substantial decrease from the ₹100.28/kg ($1,153/MT) price discovered in the H2Global auction in 2024. This price point is also competitive when compared to the March 2025 price of grey ammonia at $515/MT, highlighting the economic viability of green ammonia as a cleaner alternative.
Significance of the National Green Hydrogen Mission
The National Green Hydrogen Mission aims to position India as a global leader in green hydrogen production by 2030. The SIGHT Scheme, a pivotal component of this mission, provides financial incentives to manufacturers for the production of green hydrogen and its derivatives, such as green ammonia. By facilitating the large-scale adoption of these technologies, the mission seeks to decarbonize various sectors, including fertilizers, transportation, and power generation.
Implications for India’s Energy Landscape
This auction not only sets a new benchmark in green ammonia pricing but also underscores the growing investor and developer confidence in India’s green energy transition framework. The competitive bidding process reflects the robust demand for clean energy solutions and the effectiveness of the government’s policy interventions. With the successful implementation of this auction, SECI plans to conduct 12 more auctions under the SIGHT Scheme, targeting a cumulative procurement capacity of 724,000 MTPA of green ammonia.
Conclusion
SECI’s inaugural green ammonia auction represents a pivotal moment in India’s journey towards a sustainable and low-carbon future. By achieving a record-low price for green ammonia, the auction demonstrates the feasibility and economic advantages of transitioning to cleaner energy sources. As India continues to invest in renewable energy technologies, initiatives like the SIGHT Scheme will play a crucial role in shaping a greener and more resilient energy landscape.
Why This News is Important
Advancement in Clean Energy Initiatives
The successful conduct of SECI’s first green ammonia auction marks a significant advancement in India’s clean energy initiatives. By setting a record-low price for green ammonia, the auction demonstrates the country’s commitment to reducing carbon emissions and promoting sustainable energy solutions.
Economic Implications
The competitive pricing achieved in the auction makes green ammonia a viable alternative to traditional grey ammonia, offering economic incentives for industries to transition to cleaner energy sources. This shift is expected to lead to cost savings and enhanced energy security in the long term
Policy and Regulatory Impact
The success of the auction highlights the effectiveness of the National Green Hydrogen Mission and the SIGHT Scheme in driving the adoption of green hydrogen technologies. The government’s supportive policies and financial incentives are crucial in fostering innovation and attracting investments in the renewable energy sector.
Environmental Benefits
Green ammonia, produced using renewable energy sources, offers significant environmental benefits over conventional ammonia production methods. Its adoption can lead to substantial reductions in greenhouse gas emissions, contributing to India’s climate goals and global sustainability efforts.
Strategic Positioning in Global Energy Markets
By leading in the production and adoption of green ammonia, India positions itself as a key player in the global green energy market. This strategic positioning can open up new avenues for exports and international collaborations in the renewable energy sector.
Historical Context
The concept of green ammonia has gained prominence as part of global efforts to decarbonize industries and reduce reliance on fossil fuels. Ammonia, traditionally produced using natural gas, is a key component in fertilizers and has applications in various industrial processes. The production of green ammonia involves using green hydrogen, produced via electrolysis powered by renewable energy sources, combined with nitrogen from the air.
India’s National Green Hydrogen Mission, launched in 2023, aims to promote the production and utilization of green hydrogen and its derivatives. The mission includes the SIGHT Scheme, which provides financial incentives to manufacturers for the production of green hydrogen and its derivatives, such as green ammonia. The successful conduct of SECI’s first green ammonia auction is a testament to the progress made under this mission and the country’s commitment to achieving its renewable energy targets.
Key Takeaways from SECI’s Green Ammonia Auction
| S.No | Key Takeaway |
|---|---|
| 1 | SECI’s first green ammonia auction achieved a record-low price of ₹55.75/kg. |
| 2 | The auction secured the supply of 75,000 MTPA of green ammonia to Paradeep Phosphates Ltd. |
| 3 | The price discovery translates to approximately $641 per metric tonne. |
| 4 | The SIGHT Scheme under the National Green Hydrogen Mission supports the adoption of green hydrogen technologies. |
| 5 | SECI plans 12 more auctions under the SIGHT Scheme, targeting a cumulative procurement capacity of 724,000 MTPA. |
FAQs: Frequently Asked Questions
Q1. What is green ammonia?
Green ammonia is ammonia produced using green hydrogen generated from renewable energy sources through electrolysis, making it a clean and sustainable alternative to traditional ammonia produced from fossil fuels.
Q2. What was the significance of SECI’s first green ammonia auction?
SECI’s auction marked the first-ever competitive bidding process for procuring green ammonia in India, achieving a record-low price, signaling progress in the country’s green hydrogen mission.
Q3. What is the National Green Hydrogen Mission?
It is an initiative by the Indian government aimed at promoting the production and use of green hydrogen and its derivatives like green ammonia to support decarbonization and sustainability goals by 2030.
Q4. Who was the buyer in SECI’s green ammonia auction?
Paradeep Phosphates Limited, a major fertilizer manufacturer in Odisha, secured the supply of 75,000 metric tonnes per annum of green ammonia through the auction.
Q5. How does green ammonia benefit the environment?
Green ammonia significantly reduces greenhouse gas emissions compared to conventional ammonia production by using renewable energy, helping India meet climate targets and reduce pollution.
Q6. What is the SIGHT Scheme?
The Strategic Interventions for Green Hydrogen Transition (SIGHT) Scheme offers financial incentives and supports auctions for green hydrogen and derivatives procurement to boost India’s clean energy sector.
Q7. How many more green ammonia auctions does SECI plan to conduct?
SECI plans to conduct 12 more auctions targeting a cumulative procurement capacity of 724,000 metric tonnes per annum.
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