ACME Cleantech Solutions has won Solar Energy Corporation of India’s (SECI) auction to supply 75,000 metric tons (MT) of green ammonia annually to 12 fertilizer plants under the Strategic Interventions for Green Hydrogen Transition (SIGHT) program (Mode-2A-Tranche-I).

This is a part of a series of 13 auctions, under a tender aggregating a cumulative procurement capacity of 724,000 MT/year.

ACME won 75,000 MT/year at a tariff of ₹55.7 (~$0.64)/kg.

The tender was floated in June this year. The green ammonia will be supplied to Paradeep Phosphates in Orissa for ten years.

SECI said the discovered price translates to approximately $641/MT, a substantial drop from the previously discovered price of $1,153/MT. This 10-year fixed-price bid provides a strong economic rationale for offtakers to initiate their clean energy transition journey.

The tender had specified that ACME must secure all approvals and permits, including those for land, and must ensure production, storage, and delivery to the drop-off point.

The company must also identify the land for the project, construct and own the facility, and handle all logistics up to the delivery. The awarded capacity will be produced and supplied directly by ACME, as trading or arbitrage is not permitted.

However, the company can meet up to 10% of the committed annual capacity through third-party or other sources.

The green ammonia supplied can be produced using renewable energy sourced from either a co-located or remotely located project. The producer or a third party can own these projects. They can also procure renewable energy from the power exchanges.

In 2023, the Union Cabinet approved the National Green Hydrogen Mission to facilitate demand creation, production, utilization, and export of green hydrogen with an initial outlay of ₹197.44 billion (~$2.3 billion).

A large portion of the funding — ₹174.9 billion (~$2.1 billion) — is earmarked for the SIGHT program. The rest of the outlay has been divided among other initiatives, including ₹14.66 billion (~$177 million) for pilot projects, ₹4 billion (~$48.3 million) for research and development, and ₹3.88 billion (~$46.8 million) towards other mission components.

Last year, SECI invited bids for the production and supply of green ammonia in India through cost-based competitive bidding under the SIGHT program.