India’s SECI seeks long-term green ammonia supply

State-owned Solar Energy Corporation of India (SECI) has issued a tender on 7 June to select eligible suppliers to supply 539,000 t/yr of green ammonia.

The ammonia will be supplied to 11 fertilizer facilities in India, owned by eight different fertilizer producers. Offers are to be submitted online by 29 July and in hard copy by 31 July. SECI will then hold a reverse auction to select the successful suppliers.

SECI will sign a Green Ammonia Producers Agreement (Gapa) with the successful suppliers for a period of 10 years based on the terms and conditions of the tender. Participants are to submit a fixed price which shall remain valid for the duration of the Gapa.

Successful suppliers under this tender are required to set up green ammonia production facilities in India to produce and supply green ammonia to the phosphate fertilizer producers listed in the table below, including building storage and transporting product to the producers.

Successful suppliers will have access to the following government subsidies:

• 8.82 rupees/kg ($105.62/t) of green ammonia in the first year of production and supply
• Rs7.06/kg during the second year of production and supply,
• Rs5.30/kg during the third year of production and supply

They will also be eligible for carbon credits, which will be issued by a separate entity and not discussed in this tender.

This tender was initially announced in January. It is part of SECI's efforts as an agency under India's Ministry of New and Renewable Energy (MNRE) and the implementing agency for the Implementation of Strategic Interventions for Green Hydrogen Transition (SIGHT) Programme under India's National Green Hydrogen Mission aimed at enabling rapid scale-up, technology development and cost reduction of green hydrogen production.

By Huijun Yao