India has hit a record low price for green ammonia at ₹55.75 per kg in its first-ever auction conducted by the Solar Energy Corporation of India (SECI), under the Strategic Interventions for Green Hydrogen Transition (SIGHT) Scheme. This milestone marks a significant moment in India’s green hydrogen journey and strengthens its ambitions to become a global hub for green hydrogen and ammonia production.

The auction, part of Mode-2A of the SIGHT Scheme, awarded a 10-year supply contract for 75,000 metric tonnes per annum (MTPA) of green ammonia to Paradeep Phosphates Limited in Odisha. It is the first of 13 planned tenders targeting a cumulative 7.24 lakh MTPA, forming a crucial pillar of the National Green Hydrogen Mission.

The discovered price of ₹55.75/kg (approximately USD 641/MT) is a dramatic reduction from the earlier benchmark of ₹100.28/kg (USD 1,153/MT) under Germany’s H2Global auction held in 2024. For comparison, the average grey ammonia price stood at USD 515/MT as of March 2025. This narrowed price gap marks a crucial step towards mainstream adoption of green hydrogen derivatives, making clean energy commercially viable for industries.

Backed by robust payment security and structured offtake mechanisms, the auction drew strong participation from developers and off-takers, reflecting heightened confidence in India’s clean energy ecosystem. It was supported by the Ministry of New & Renewable Energy (MNRE) and the Department of Fertilisers.

The National Green Hydrogen Mission, with an initial budget outlay of ₹19,744 crore, targets an annual green hydrogen production of 5 million metric tonnes by 2030, with the potential to scale to 10 MMT depending on export demand. It focuses on building domestic manufacturing capacity, strengthening infrastructure, and creating demand across key sectors.

This auction outcome is expected to accelerate industrial decarbonisation and set the tone for future pricing, helping India attract investment and partnerships in its transition to a low-carbon economy.

Source:

https://www.newindianexpress.com/nation/2025/Aug/06/india-hits-record-low-price-for-green-ammonia-in-first-seci-auction-under-green-hydrogen-mission