In an effort to decarbonize India’s highly polluting fertilizer industry, the Solar Energy Corporation of India (SECI) has released a call for bids for the delivery of 724,000 tonnes of green ammonia per year to 13 fertilizer facilities. The tender, which was issued under the Strategic Interventions for Green Hydrogen Transition (SIGHT) project, represents a significant step in the industrial integration of green hydrogen.
Under the Ministry of New and Renewable Energy (MNRE), SECI, a Central Public Sector Enterprise with Navratna status, will combine demand and sign ten-year contracts with specific producers. The program aims to reduce greenhouse gas emissions caused by the existing fossil fuel-based production of ammonia, a necessary ingredient in urea and other nitrogen-based fertilizers. In order to encourage the manufacturing of low-emission and domestic fertilizer, SECI’s tender will use renewable energy to generate green hydrogen and ammonia.
Every year, India uses between 17 and 19 million tonnes of ammonia. More than half of the nation’s hydrogen needs are met by the fertilizer sector, which mostly uses imported natural gas. It is anticipated that SECI’s initiative will lessen this reliance, lessen exposure to changes in the price of gas globally, and minimize the trade imbalance. It is anticipated that domestic green ammonia production will create new job opportunities and increase resilience during geopolitical disruptions.
The SECI program is anticipated to minimize this reliance, lessen susceptibility to swings in the world’s gas prices, and reduce the trade imbalance. The production of green ammonia domestically is anticipated to create new job opportunities and improve resilience during geopolitical crises.
By boosting supply and demand at the same time, SECI’s green ammonia tender solves the “chicken-and-egg” problem plaguing the hydrogen economy. With this endeavor, India is one step closer to reaching its 2070 target of net-zero carbon emissions.