SECI sees record-low price of ₹55.75 per kg in first green ammonia auction

The Solar Energy Corporation of India (SECI) has achieved a record-low price of ₹55.75 per kg for green ammonia in its first-ever auction under the National Green Hydrogen Mission’s SIGHT Scheme (Mode 2A). 

 

This holds significance as low-priced green ammonia is pivotal for India to reduce reliance on imported natural gas for fertiliser production, lower carbon emissions, and enhance energy security. It can also significantly cut down the country's fertiliser subsidy burden, promote agricultural sustainability, and drive technological innovation.  

This auction covers the supply of 75,000 tonnes per annum of green ammonia to Paradeep Phosphates Limited, Odisha. 

It is the first in a planned series of 13 auctions over the coming month, under a tender aggregating a cumulative procurement capacity of 724,000 tonnes a year.

 

The discovered price translates to approximately $641 a tonne, a substantial drop from the previously discovered price of Rs 100.28 a kg ($1,153 per tonne) in the H2Global auction in 2024. 

 

With Grey Ammonia prices touching $515 per tonne, as of last March, this 10-year fixed-price bid provides strong economic rationale for offtakers to initiate their clean energy transition journey, according to an official statement. 

 

Green ammonia is crucial for India's energy transition due to its potential to decarbonize various sectors, enhance energy security, and reduce reliance on fossil fuels. It can be a key component in fertilizer production, replacing fossil fuel-based ammonia, and also serves as a storage and transport medium for green hydrogen. By producing green ammonia domestically, India can reduce its dependence on imports, lower the trade deficit, and create new employment opportunities. 

 

SECI, acting as the intermediary procurer, has anchored the auction under the guidance of the Ministry of New & Renewable Energy (MNRE), with support from the Department of Fertilizers and the participating offtakers.

 

"This 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. The auction witnessed intense competition, reflecting the strong investor and developer confidence in India’s green energy transition framework," the statement read.

 

"With robust payment security mechanisms in place, the scheme unlocks confidence across the value chain and enables large-scale adoption of Green Ammonia and other derivatives," it added.