The Solar Energy Corporation of India (SECI) has signed six agreements with manufacturers to supply 670,000 tons per annum (TPA) of green ammonia to fertilizer companies out of the allocated capacity of 724,000.

Union Minister of New and Renewable Energy Pralhad Joshi said the 10-year agreements will provide demand certainty for the industry, enable financial closure, and support large-scale investments in green ammonia production.

The agreements are expected to save nearly $2.5 billion (~₹235.78 billion) in foreign exchange over the next decade by replacing imported grey ammonia in non-urea-based fertilizer units.

The supply of green ammonia is linked to 13 fertilizer units across the country.

SECI acted as the intermediary aggregator in the execution of the green ammonia sale agreements.

In 2024, SECI invited bids for the production and supply of green ammonia in India through cost-based competitive bidding under strategic interventions for the green hydrogen transition program.

The lowest discovered tariff in the auctions was ₹49.75 (~$0.52)/kg. ACME Cleantech Solutions won the bid to supply 100,000 TPA of green ammonia to the Indian Farmers Fertilizer Cooperative in Paradeep, Odisha, for 10 years.

ACME also won several auctions to supply a cumulative total of 370,000 TPA of green ammonia.

Overall, the tariffs discovered in these auctions ranged between ₹49.75 (~$0.52)/kg and ₹64.74 (~$0.68)/kg, while international prices are approximately €1,000 (~$1,148.25) per ton or around ₹110 (~$1.16)/kg.

These auctions were held under the Government of India’s National Green Hydrogen Mission, with an outlay of ₹197.44 billion (~$2.9 billion), which aims at producing at least 5 million metric tons of green hydrogen per annum by 2030.

Pralhad Joshi said that the next phase of India’s energy transition will focus on hard-to-abate sectors such as fertilizers, refineries, steel, and transport, where green hydrogen and its derivatives will play a critical role.

He emphasized that green ammonia will not only serve as a clean feedstock but also help build a new industrial ecosystem, generate jobs, and attract investments.