India achieves record low price of ₹55.75/kg in 1st green ammonia auction

The first-ever auction conducted by SECI for green ammonia procurement under the SIGHT Scheme (Mode-2A) has achieved a record low price discovery of ₹55.75/kg.

In a landmark development under the National Green Hydrogen Mission, the first-ever auction conducted by SECI for the procurement of green ammonia under the SIGHT Scheme (Mode-2A) has achieved a record low price discovery of ₹55.75/kg.

This pioneering auction covers the supply of 75,000 metric tonnes per annum of green ammonia to Paradeep Phosphates Limited, Odisha. It is the first in a planned series of 13 auctions over the coming month, under a tender aggregating a cumulative procurement capacity of 7.24 lakh MT/year.

The discovered price translates to approximately USD 641/MT, a substantial drop from the previously discovered price of ₹100.28/kg (USD 1,153/MT) in the H2Global auction in 2024. With grey ammonia prices reaching USD 515/MT (as of March 2025), this 10-year fixed-price bid provides strong economic rationale for offtakers 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 Fertilisers and the participation of the offtakers.

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.

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.