Recently, Solar Energy Corporation of India (SECI) has issued a Request for Selection (RfS) for selecting Green Ammonia Producers to produce Green Ammonia in India.

More on the news

  • The bidding for a total available capacity of 5.39 lakh Metric Tonnes (MT)/annum of Green Ammonia intended for production and supply through e-bidding followed by an e-reverse Auction process. 
  • This will be done through Cost-Based Competitive Bidding under the Strategic Interventions for Green Hydrogen Transition (SIGHT) Scheme (Mode-2A-Tranche-I).
    This initiative is part of the National Green Hydrogen Mission implemented by the Ministry of New & Renewable Energy (MNRE).

Solar Energy Corporation of India Limited (SECI)

  • It is a CPSU under the administrative control of the MNRE, set up in 2011 to facilitate the implementation of the National Solar Mission (NSM) and the achievement of targets set therein.
  • It is the only CPSU dedicated to the renewable energy sector.
  • It was originally incorporated as a section 25 (not-for-profit) company under the Companies Act, 1956.
  • Later, the company was converted into a Section-3 company, in 2015, under the Companies Act, 2013. 

National Green Hydrogen Mission

  • It aims to make India the Global Hub for the production, usage, and export of Green Hydrogen and its derivatives.
  • To make India self-reliant with clean energy, decarbonize the economy, reduce fossil fuel dependence, and lead in Green Hydrogen.
  • The Mission will result in the following likely outcomes by 2030: 
  • Green Hydrogen: It is produced using electrolysis of water with electricity generated by renewable energy. The carbon intensity ultimately depends on the carbon neutrality of the source of electricity.
  • Green ammonia, a carbon-free and renewable form of ammonia is produced using hydrogen from water electrolysis and nitrogen separated from the air and is widely used to make agricultural fertilizers.

Strategic Interventions for Green Hydrogen Transition (SIGHT)

  • Under the SIGHT Programme, MNRE has already allocated 4.12 lakh Metric Tonnes (MT)/annum of Green Hydrogen production capacity and 1.5 GW/ annum of Electrolyzer manufacturing capacity.
  • The program proposes two distinct financial incentive mechanisms to support the domestic manufacturing of electrolysers and the production of Green Hydrogen. 

There could be several modes for implementation of “Incentive Scheme for Green Hydrogen Production”. Two of them are presently identified as follows:

  • Mode 1: Bidding on the least incentive demanded over the three years, through a competitive selection process. 
  • Mode 2: The implementing agency shall aggregate demand and will call for bids for the procurement of Green Hydrogen and its derivatives at the lowest cost through a competitive selection process.

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