India Achieves Record Low Green Ammonia Price in Landmark SECI Auction

The Solar Energy Corporation of India (SECI) has made a significant stride in the nation's clean energy ambitions by successfully conducting its first-ever auction for the procurement of Green Ammonia under the National Green Hydrogen Mission. The auction, held under the SIGHT Scheme (Mode-2A), has set a new benchmark with a competitive price discovery of ₹55.75 per kilogram (approximately USD 641 per metric tonne), marking a pivotal development in India's pursuit to become a global leader in green hydrogen and its derivatives.

Major Milestone in India's Green Hydrogen Roadmap

The auction result is a milestone for the Ministry of New & Renewable Energy (MNRE) as it marks the first in a sequence of 13 auctions scheduled to take place over the coming month. SECI, as the intermediary procurer, will anchor the procurement process under the guidance of the MNRE and with the support of both the Department of Fertilizers and participating offtakers.

This initial auction covers the supply of 75,000 metric tonnes per annum of Green Ammonia to Paradeep Phosphates Limited in Odisha. The entire tender aims for a cumulative procurement capacity of 724,000 metric tonnes of Green Ammonia per year. This structured, phased approach demonstrates the government’s commitment to building scale and ensuring dependable supply in the emerging green hydrogen sector.

Competitive Pricing: A Turning Point

The auction’s discovered price of ₹55.75/kg is notably lower than the previously recognized price of ₹100.28/kg (USD 1,153/MT) seen in the H2Global auction in 2024. When compared to the prevailing price of Grey Ammonia, which stands at USD 515/MT as of March 2025, this achievement underscores a considerable narrowing of the price gap between green and conventional ammonia. The fixed price secured for the next 10 years provides long-term economic clarity for procurers considering the transition to cleaner alternatives.

Process Oversight and Industry Response

SECI operated under the close supervision of the MNRE, ensuring transparency and competitive participation. The Department of Fertilizers, along with offtakers such as Paradeep Phosphates Limited, played a central role in shaping demand and providing procedural support. The auction was characterized by intense competition among participants, highlighting industry confidence in India’s green energy transition framework. The engagement of multiple players and developers is expected to enhance technology adoption and drive innovation across the green ammonia value chain.

Robust Payment Security Mechanism

A critical element of the auction’s framework is the inclusion of strong payment security mechanisms. These safeguards are designed to assure all stakeholders—from producers to buyers—of the integrity of commercial transactions. Such financial confidence is essential for encouraging large-scale adoption of green ammonia and paves the way for long-term investment in the sector.

Implications for India's Energy Transition

This auction stands out as a critical development in India’s journey towards decarbonizing its industrial and fertilizer sectors. By anchoring the procurement of green ammonia at a globally competitive price, India not only takes a significant step towards meeting its clean energy goals but also demonstrates emerging cost-effectiveness relative to traditional ammonia sources. The progression from pilot programs to commercial-scale procurement signifies growing maturity in the market and increases India’s credibility as an emerging global hub for green hydrogen production.

Outlook

With the successful completion of this auction and plans for upcoming tenders, India sets the stage for a sustained green ammonia market backed by transparent policy support and robust industry participation. The achievements to date reinforce the government’s intent to strengthen the entire green hydrogen ecosystem, benefiting not only energy producers but also end-use sectors committed to sustainable transitions.