SECI Awards Green Ammonia Contracts at Rs 49.75/kg in SIGHT Scheme Auction

The Solar Energy Corporation of India Limited (SECI) has awarded fixed-rate procurement contracts for 7,24,000 metric tonnes per annum (MTPA) of green ammonia under Mode-2A (Tranche-I) of the Strategic Interventions for Green Hydrogen Transition (SIGHT) Scheme.

The contracts cover supplies to 13 fertiliser plants under the National Green Hydrogen Mission and are intended to support the replacement of imported fossil-fuel-based grey ammonia with domestically produced green ammonia.

The e-reverse auction resulted in delivered prices ranging from Rs 49.75/kg ($568.07/tonne), offered by ACME Cleantech for supply to IFFCO Paradeep, to Rs 64.74/kg ($739.98/tonne), quoted by Indorama India for delivery to Haldia.

ACME Cleantech Secures Six Contracts

ACME Cleantech emerged as the largest successful bidder, securing six contracts with a combined capacity of more than 3,50,000 MTPA.

SCC Infrastructure won two contracts totalling 85,000 MTPA. NTPC Renewable Energy secured 70,000 MTPA, while Oriana Power won 60,000 MTPA and Onix Renewable secured 50,000 MTPA.

Jakson Green, in partnership with OCIOR, secured 85,000 MTPA, while Suryam International won a 4,000 MTPA contract.

Ten-Year Offtake Agreements

The procurement contracts have a 10-year offtake period with fixed prices. The framework includes government subsidies for the first three years and a Payment Security Mechanism (PSM) backed by the Centre to protect producers against potential payment defaults by fertiliser plants.

Successful bidders are required to reach a Financial Investment Decision (FID) within 12 months.

SECI has also launched the Mode-2A Tranche-II tender for procurement of an additional 54,000 MTPA of green ammonia.

Green Ammonia and Import Substitution

The contracted volume of 7,24,000 MTPA is expected to reduce India’s reliance on imported grey ammonia over the 10-year offtake period. The programme estimates foreign exchange savings of around $2.5 billion during the contract term.

The discovered prices of Rs 49.75/kg to Rs 64.74/kg ($568-$740/tonne) place green ammonia closer to the cost range of conventional grey ammonia, while providing fixed-price offtake arrangements for producers and fertiliser manufacturers.

The procurement framework is aimed at supporting domestic green ammonia production for use in fertiliser manufacturing, including products such as DAP and NPK, while creating demand for green hydrogen derivatives under the National Green Hydrogen Mission.

A Ministry of New and Renewable Energy (MNRE) official said the price discovery marks a watershed moment in India’s Green Hydrogen journey and reinforces the country’s vision of becoming a global hub for green hydrogen production, adding that the robust payment security mechanisms in place unlock confidence across the value chain and enable large-scale adoption of green ammonia and other derivatives.

Arnava Sinha, Executive Vice President & Head of Business Development, ACME Group, called it a proud moment for the company, thanking and congratulating MNRE and SECI for creating a conducive environment for green ammonia market creation.