India achieves record-low price in first green ammonia auction
SECI First Auction Marks Breakthrough in Green Ammonia Pricing: The Solar Energy Corporation of India (SECI) has conducted the nation’s first-ever auction for Green Ammonia procurement under the National Green Hydrogen Mission. Held under the SIGHT Scheme (Mode-2A), the auction discovered a landmark price of ₹55.75 per kilogram, nearly half the rate recorded in 2024.
This price achievement signals a major turning point in India’s clean energy sector, providing industries with a strong incentive to switch from fossil-based ammonia to green alternatives.
Static GK fact: The SECI was established in 2011 as a PSU under the Ministry of New and Renewable Energy.
Supply deal with Paradeep Phosphates Limited
The auction awarded a contract for the supply of 75,000 metric tonnes per annum of Green Ammonia to Paradeep Phosphates Limited in Odisha. This procurement is part of 13 planned auctions over the next month, targeting a total of 7.24 lakh metric tonnes annually.
Static GK fact: Paradeep Phosphates Limited is one of India’s leading fertilizer manufacturers, established in 1981.
Price comparison with global benchmarks
The discovered rate of ₹55.75/kg (USD 641/MT) marks a sharp decline from the ₹100.28/kg (USD 1,153/MT) price in the H2Global auction 2024. In contrast, Grey Ammonia prices stood at USD 515/MT in March 2025.
The competitive pricing comes with a 10-year fixed-price contract, ensuring cost stability for buyers. This model could encourage greater adoption across fertilizer, shipping, and heavy industries.
Investor confidence and policy support
The auction attracted strong participation from renewable energy developers, reflecting high investor trust in India’s policy framework. SECI, acting as the intermediary procurer, coordinated with the Ministry of New and Renewable Energy and the Department of Fertilizers to implement payment security mechanisms, reducing financial risks for developers.
Static GK Tip: The Department of Fertilizers operates under the Ministry of Chemicals and Fertilizers.
Boost to India’s green hydrogen ambitions
This auction is being viewed as a watershed moment in India’s Green Hydrogen roadmap. Achieving near cost-parity with fossil-based ammonia strengthens India’s position as a potential global hub for green hydrogen and derivatives.
By reducing production costs and ensuring long-term pricing, India is advancing towards its goal of net-zero emissions by 2070 while cutting dependence on fossil-based imports.
Outlook for the sector
The remaining 12 auctions scheduled in the coming weeks are expected to further stabilize prices and attract global investment. Economies of scale and long-term contracts could accelerate the large-scale adoption of green fuels in India.
Static GK fact: India’s National Green Hydrogen Mission was launched in 2023 with an initial outlay of ₹19,744 crore.
Static Usthadian Current Affairs Table
SECI First Auction Marks Breakthrough in Green Ammonia Pricing:
Fact | Detail |
Auction organiser | Solar Energy Corporation of India (SECI) |
Scheme | SIGHT Scheme (Mode-2A) |
Discovered price | ₹55.75/kg (USD 641/MT) |
Previous benchmark price | ₹100.28/kg (USD 1,153/MT) in H2Global auction 2024 |
Grey Ammonia price (Mar 2025) | USD 515/MT |
Contract duration | 10 years fixed price |
Annual supply in first auction | 75,000 MT to Paradeep Phosphates Limited |
Total annual target in upcoming auctions | 7.24 lakh MT |
Ministry overseeing SECI | Ministry of New and Renewable Energy |
Net-zero target year for India | 2070 |