Suryam International has won Solar Energy Corporation of India’s (SECI) auction to supply 4,000 tons per annum (TPA) of green ammonia under the Strategic Interventions for Green Hydrogen Transition (SIGHT) program (Mode-2A-Tranche-I).

Suryam quoted a tariff of ₹50 (~$0.566)/kg to win the auction. This is lower than the tariff of ₹57.65 (~$0.653)/kg quoted in the previous auction for 15,000 TPA.

The green ammonia will be supplied to Madras Fertilizers in Chennai, Tamil Nadu, for ten years.

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

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

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

The awarded capacity must be produced and supplied directly, and no trading or arbitrage is permitted. However, Suryam 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, which may be owned by the producer or a third party. Suryam may also procure renewable energy from the power exchanges.

In 2023, the government 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, approximately ₹174.9 billion (~$1.99 billion), was earmarked for the SIGHT program. The remaining outlay was allocated to 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.