NTPC Renewable Energy has won Solar Energy Corporation of India’s (SECI) auction to supply 70,000 tons per annum (TPA) of green ammonia under the Strategic Interventions for Green Hydrogen Transition (SIGHT) program (Mode-2A-Tranche-I).

NTPC quoted a tariff of ₹51.8 (~$0.591)/kg to win the auction.

The green ammonia will be supplied to Krishana Phoschem in Meghnagar, Madhya Pradesh, for ten years.

The tender was initially floated in June 2024 and subsequently amended to increase the projects under its scope.

SECI said the discovered price translates to approximately $591/MT, a substantial drop from the previously discovered price of $641/MT. This 10-year fixed-price bid provides a strong economic rationale for offtakers to initiate their clean energy transition journey.

NTPC Renewable Energy must establish production facilities to supply green ammonia to SECI and secure all approvals and permits, including those for land. It must ensure production, storage, and delivery to the delivery point.

They must also identify land, construct and own the facility, and handle all logistics up to delivery.

The awarded capacity must be produced and supplied directly by the producer, as trading or arbitrage is not permitted. However, NTPC can meet up to 10% of the annual capacity committed 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 may own these projects. It may also procure renewable energy from the power exchanges.

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, around ₹174.9 billion (~$1.99 billion), is earmarked for the SIGHT program. The rest of the outlay has been divided among other initiatives, including ₹14.66 billion (~$166.95 million) for pilot projects, ₹4 billion (~$45.55 million) for research and development, and ₹3.88 billion (~$44.18 million) towards other mission components.