Solar Energy Corporation of India Limited (SECI) has issued a landmark tender to procure 724,000 tonnes of green ammonia annually for 13 fertilizer plants, in a move aimed at slashing emissions and cutting reliance on imported fuels. The tender, issued on June 7 under the Ministry of New and Renewable Energy’s (MNRE) SIGHT Scheme, marks a major step in India’s push towards cleaner alternatives in agriculture. The last date for bid submission is June 26, 2025.
Ammonia, a key input in nitrogen-based fertilizers like urea, is currently produced using fossil fuels, which contribute significantly to greenhouse gas emissions. Under this initiative, SECI will support the use of renewable energy to produce green hydrogen and ammonia, paving the way for low-emission fertilizer production across the country.
To attract investment and ensure commercial viability, the Centre is offering production-linked incentives of Rs 8.82/kg in the first year, Rs 7.06/kg in the second, and Rs 5.30/kg in the third, adding up to Rs 1,533.4 crore in total support. A dedicated Payment Security Mechanism (PSM) will also protect producers from payment delays, offering financial assurance and reducing risk.
SECI will anchor demand aggregation and sign long-term offtake agreements valid for 10 years, giving green ammonia producers certainty and helping them secure financing. The entire bidding process will take place through SECI’s e-reverse auction platform to ensure transparency and competitive pricing.
India uses around 17–19 million tonnes of ammonia each year, over half of which is tied to hydrogen use in fertilizer production. Most of this hydrogen is currently derived from imported natural gas. By shifting to green hydrogen, India can cut carbon emissions significantly, just 2 kg of CO₂ is released per kg of green hydrogen, compared to up to 12 kg from conventional methods.
The move is expected to strengthen India’s energy security, reduce the trade deficit, and generate green jobs. It also addresses the long-standing “chicken-and-egg” problem of the hydrogen economy by creating assured demand for producers.
SECI’s green ammonia tender is a significant step toward India’s 2070 net-zero target and supports the government’s vision of a sustainable, self-reliant Viksit Bharat.
