The Solar Energy Corporation of India (SECI) has invited bids for the supply of 724,000 metric tons (MT) of green ammonia annually to 13 fertilizer plants under the Strategic Interventions for Green Hydrogen Transition (SIGHT) program (Mode-2A-Tranche-I).

The green ammonia producer must establish production facilities to supply green ammonia to SECI and be fully responsible for securing all required approvals and permits, including those for land, and 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, the producers 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 may own these projects. They may also procure renewable energy from the power exchanges.

The supply period will be ten years.

Bids must be submitted by June 30, 2025. Bids will be opened on July 3.

Bidders must submit ₹25,000 (~$288) as a document fee and ₹1.5 million (~$) as a bid processing fee. They must also furnish an earnest money deposit of ₹5,000 (~$58)/MT.

Selected bidders must remit ₹7,500 (~$86)/MT as a performance bank guarantee before signing the green ammonia purchase agreement.

SECI will also charge a trading margin of ₹1.5 (~$0.017)/kg.

The bidders must have a minimum net worth of at least ₹50 million (~$576,116)/1,000 MT/annum of cumulative quoted production and supply capacity as of the last date of the previous financial year.

The producers will receive an incentive of ₹8.82 (~$0.101)/kg of green ammonia in the first year, ₹7.06 (~$0.081)/kg during the second year, and ₹5.30 (~$0.061)/kg during the third year. The total outlay for the incentives will be ₹15.3 billion (~$176.2 million).

In June last year, SECI invited bids for the production and supply of green ammonia in India under the SIGHT program.

The Union Cabinet last year approved the National Green Hydrogen Mission with a budget of ₹197.4 billion (~$2.3 billion) up to the financial year 2029-30. A key initiative under this mission was the SIGHT program, which has an allocation of ₹174.9 billion (~$2.01 billion).