SECI’s Green Ammonia Tender Poised to Unlock Hydrogen Economy, with Potential Ripple Effects for Maritime Sector

The Solar Energy Corporation of India Limited (SECI), a Navratna Central Public Sector Undertaking under the Ministry of New and Renewable Energy (MNRE), has issued a significant tender for the offtake of 724,000 tonnes of green ammonia annually. While primarily aimed at decarbonizing India’s fertilizer sector, the initiative may also lay foundational groundwork for broader clean energy adoption—possibly extending to future applications in shipping and maritime logistics.

Issued under the Strategic Interventions for Green Hydrogen Transition (SIGHT) Scheme – Mode 2A, Tranche I, the tender covers 13 fertilizer plants across India. SECI will act as an aggregator, signing long-term offtake agreements with producers for a 10-year period, helping ensure demand stability and reducing commercial risk for green ammonia developers.

Beyond agriculture, the tender could play a key role in stimulating India’s green hydrogen economy. It addresses the “chicken-and-egg” challenge of simultaneous demand and supply, potentially unlocking upstream investment in electrolyser manufacturing, renewable energy generation, and hydrogen-based fuel solutions.

One area observers are watching closely is shipping. Green ammonia—produced using renewable hydrogen—is being explored globally as a future marine fuel, owing to its high energy density and zero carbon emissions at the point of use. Although challenges remain around infrastructure, safety, and scalability, India’s push for green ammonia could, over time, support decarbonization pathways in the maritime sector, especially for ports and coastal transport.

The tender is supported by financial incentives under the National Green Hydrogen Mission, including Production Linked Incentives (PLIs) of ₹8.82/kg, ₹7.06/kg, and ₹5.30/kg in the first three years. A Payment Security Mechanism (PSM) backed by the Government of India also helps derisk supplier payments, boosting investor confidence.

With bid submissions due by 26th June 2025, the initiative is expected to attract significant interest from renewable energy developers and hydrogen technology providers.

SECI’s green ammonia procurement marks a milestone in India’s journey toward a net-zero economy by 2070. While its immediate impact lies in decarbonizing fertilizer production, its long-term ripple effects could shape adjacent sectors—including, potentially, maritime shipping—as India builds a clean energy ecosystem aligned with the vision of Viksit Bharat.