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India’s SECI Seeks Long-Term Green Ammonia Supply
Context:
State-owned Solar Energy Corporation of India (SECI) has recently issued a tender to select eligible suppliers for the supply of 539,000 metric tonnes per year (t/yr) of green ammonia.
More on News:
- SECI has initiated a Request for Selection (RfS) of Green Ammonia Production through competitive bidding under Strategic Interventions for Green Hydrogen Transition (SIGHT) programme.
- The initiative is part of India’s National Green Hydrogen Mission (NGHM) by the Ministry of New & Renewable Energy.
Key Highlights:
- The production of green ammonia will be carried out through cost-based competitive bidding under Mode 2A of the SIGHT programme.
- The bidding process will involve e-bidding followed by e-Reverse Auction.
- Ammonia Supply: The green ammonia will be supplied to 11 fertiliser facilities across India, owned by eight different fertiliser producers.
- Supplier Agreement: Successful suppliers will sign a Green Ammonia Producers Agreement (Gapa) for a period of 10 years based on the tender terms.
- Subsidies: The program will run for three years from 2027.
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- Producers must meet the national “green hydrogen standard” carbon intensity guidelines.
- Incentive amounts are fixed: US$106 per tonne of ammonia in the first year, US$85 per tonne in the second year, and US$85 per tonne in the third year.
- MNRE’s Allocations
- Green Hydrogen Capacity: MNRE has already allocated 4.12 lakh MT per annum of green hydrogen production capacity.
- Electrolyser Manufacturing Capacity: MNRE has earmarked 1.5 GW per annum of electrolyser manufacturing capacity.
The National Green Hydrogen Mission:
- Launched in January 2023
- Objective: To make India self-reliant in clean energy.
- India aims to become a global leader in green hydrogen technology with an outlay of Rs. 19,744 crores until FY 2029-30.
- Decarbonisation: The mission will significantly reduce carbon emissions, contributing to a cleaner environment.
- Energy Independence: By reducing dependence on fossil fuel imports, India can achieve energy security.
- Technology Leadership: India’s focus on green hydrogen technology will foster innovation and market leadership.
bout Green Ammonia:
Renewable ammonia is a promising alternative fuel and fertiliser that has a significantly lower environmental impact than conventional alternatives.
- Production Methods
- Traditional Ammonia Production:
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- Uses the Haber-Bosch process with natural gas.
- Releases significant amounts of CO₂, a greenhouse gas.
- Green Ammonia Production:
- Utilises renewable energy sources like solar, wind, or hydro.
- Electrolysis: Splits water (H₂O) into hydrogen (H₂) and oxygen (O₂) using renewable electricity.
- Haber-Bosch Process: Combines green hydrogen with atmospheric nitrogen (N₂) to produce ammonia.
- Benefits of Green Ammonia
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- Reduced Carbon Footprint: Eliminates CO₂ emissions associated with traditional ammonia production.
- Versatility:
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- Fuel: Emits only water vapour and nitrogen when combusted, making it a cleaner energy source.
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- Fertiliser: Essential for agriculture, green ammonia reduces the environmental impact of fertiliser production.
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- Energy Storage: Can store excess renewable energy for later use in power generation.
- Challenges and Future Outlook
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- Production Costs: Currently more expensive than conventional methods. Expected to decrease with technological advancements and increased renewable energy use.
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- Infrastructure Development: Needs new production facilities, transportation networks, and modifications to existing applications.
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