Onix Renewable has won Solar Energy Corporation of India’s (SECI) auction to supply 50,000 metric tons (MT) of green ammonia per annum under the Strategic Interventions for Green Hydrogen Transition (SIGHT) program (Mode-2A-Tranche-I).

Onix quoted a tariff of ₹52.50 (~$0.599)/kg to win the auction.

The green ammonia will be supplied to Gujarat Narmada Valley Fertilizers and Chemicals, in Bharuch, Gujarat, for ten years.

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

A consortium of SCC Infrastructure and InSolare Energy won the previous auction at a tariff of ₹53.05 (~$0.605)/kg.

Onix 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.

The company 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, Onix 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.