In a significant boost to India's National Green Hydrogen Mission, the first-ever auction conducted by the Solar Energy Corporation of India (SECI) Ltd for the procurement of green ammonia has achieved a record low price discovery of Rs 55.75 per kilogram (kg).
This auction covered the supply of 75,000 metric tonnes (MT) per annum of green ammonia to Paradeep Phosphates Limited, Odisha. It is the first in a planned series of 13 auctions over the coming months, under a tender meant for aggregating a cumulative procurement capacity of 7.24 lakh MT per year.
The discovered price Rs 55.75 per kg translates to approximately $641 per MT, a substantial drop from the previously discovered price of Rs 100.28 per kg ($1,153 per MT) in the H2Global auction in 2024. H2Global was developed by Germany's Federal Ministry for Economic Affairs and Climate Action (BMWK) to foster global hydrogen economy growth. It conducts auctions wherein Germany and the Netherlands offer subsidized long-term offtake contracts, ensuring economic viability for producers worldwide.
Green ammonia is made by mixing nitrogen from the air with hydrogen produced from water using renewable energy (RE) sources, like wind or solar power. It is primarily used in fertiliser production, as a clean fuel for shipping, and as a potential energy carrier for storing and transporting hydrogen.
"With grey ammonia prices reaching $515 per MT (as of March 2025), this 10-year fixed-price bid provides strong economic rationale for off-takers or procurers to initiate their clean energy transition journey. SECI, acting as the intermediary procurer, has successfully anchored the auction under the guidance of the Ministry of New & Renewable Energy (MNRE), with steadfast support from the Department of Fertilizers and the participating off-takers," the MNRE said in a statement on August 6.
Union minister for new and renewable energy Pralhad Joshi said this price discovery marks a watershed moment in India's green hydrogen journey and reinforces the country’s vision of becoming a global hub for green hydrogen production. "The auction witnessed intense competition, reflecting the strong investor and developer confidence in India’s green energy transition framework," he said.
With robust payment security mechanisms in place, the scheme unlocks confidence across the value chain and enables large-scale adoption of green ammonia and other derivatives, the government said.
India’s current ammonia consumption stands at approximately 17 to 19 million tonnes annually, with over half of its hydrogen demand coming from the fertiliser sector — most of it sourced from imported natural gas.
The green ammonia tender is expected to reduce this dependency, cut exposure to global price volatility, and enhance energy security. Notably, green hydrogen production emits less than 2 kg of CO₂ per kilogram, compared to up to 12 kg CO₂ per kilogram of grey hydrogen.
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