India Advances Green Ammonia Agenda With Major SECI Tender

The Solar Energy Corporation of India Ltd (SECI) has initiated a significant step forward in India’s green hydrogen economy by issuing a Request for Selection (RfS) for the annual supply of 539,000 metric tonnes of green ammonia. This move, aligned with Mode 2A of the Strategic Interventions for Green Hydrogen Transition (SIGHT) program under the National Green Hydrogen Mission, aims to secure a reliable supply of green ammonia primarily for fertilizer production.

The tender, announced on Friday, invites producers to partake in a cost-based competitive bidding process to fulfill this large-scale requirement. SECI’s ambitious initiative is part of a broader effort to foster a sustainable energy transition, having already allocated resources for 412,000 metric tonnes of green hydrogen production annually and 1.5 GW of electrolyzer manufacturing capacity.

Key Details of the Tender:

• Bidding Process: The selection will be through a reverse auction mechanism, focusing on achieving the lowest possible price from bidders.
• Bid Submission Deadline: Interested parties have until July 29, 2024, to submit their bids.
• Pre-Bid Meeting: A preparatory meeting is scheduled for June 28, 2024, to address potential queries from bidders.

The green ammonia will be distributed across eleven projects, with designated delivery points throughout India, including the Paradeep Phosphates Limited facility in Goa. While the ceiling price for bids has not been set, indicative prices range between 80.08-86.15 rupees per kilogram of ammonia.

Financial Incentives and Considerations:

• Subsidy Support: Successful bidders will benefit from a three-year subsidy, with a maximum of 8.82 rupees per kilogram of ammonia in the first year, aligning with the government’s subsidy for green hydrogen production.
• Cost Factors: Bidders must account for transportation costs if they choose not to produce ammonia in co-location with the delivery points.
• Quality and Delivery Requirements: Projects must be fully commissioned a year before supply commencement and adhere to specific ammonia quality standards at each delivery point.

 

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