India is taking a significant stride towards fostering a greener future. On Saturday, the government announced a crucial step in promoting green hydrogen and its derivatives within the country.
Competitive Bidding for Green Ammonia Production
The Ministry of New and Renewable Energy (MNRE) revealed that the Solar Energy Corporation of India (SECI) has initiated a request for selection (RFS) process. This competitive bidding aims to identify producers who will manufacture green ammonia in India. The process will utilize a cost-based model, ensuring efficiency and affordability.
This action is a pivotal component of the Strategic Intervention for Green Hydrogen Transition (SITE) program. Notably, SITE operates under Mode 2A and is an integral part of the overarching National Green Hydrogen Mission (NGHM). The MNRE is spearheading the implementation of this transformative mission.
Green Ammonia for Fertilizer Production
The competitive bidding process encompasses a substantial production capacity of 5.39 lakh metric tonnes (MT) of green ammonia annually. An e-bidding platform, followed by an e-reverse auction, will facilitate the selection of producers. The resulting green ammonia will be channeled towards fertilizer companies, promoting sustainable agricultural practices.
This recent development builds upon the MNRE’s earlier issuance of scheme guidelines for Component II of the SITE program. These guidelines incentivized the procurement of green ammonia production. SECI, chosen as the implementing agency, has already achieved the allocation of 4.12 lakh MT per annum of green hydrogen production capacity and 1.5 GW per annum of electrolyzer manufacturing capacity.
India’s National Green Hydrogen Mission: A Beacon of Progress
Launched on January 4, 2023, with a substantial budget of Rs. 19,744 crore allocated until FY 2029-30, the National Green Hydrogen Mission is poised to be a game-changer. It aligns seamlessly with India’s vision of self-reliance (Atmanirbhar) through clean energy solutions.
The mission’s overarching goals are far-reaching. It aims to significantly decarbonize the Indian economy, reduce dependence on imported fossil fuels, and position India as a global frontrunner in green hydrogen technology and markets. This visionary initiative sets the stage for a more sustainable and environmentally conscious future, echoing India’s unwavering commitment to combating climate change and fostering inclusive growth.