India’s energy shift through the green ammonia route, Pg8

Key Highlights:

• India is focusing on energy independence with green hydrogen and its derivatives like green ammonia.
• SECI's (Solar Energy Corporation of India) green ammonia auction attracted 15 bidders, with 7 successful awardees.
• The auction offered a 10-year, fixed-price offtake agreement, with prices ranging from ₹49.75 to ₹64.74/kg.
• Contracted volumes of green ammonia contribute to approximately 30% of India's total ammonia imports.

Detailed Insights:

• Green ammonia, produced from green hydrogen and nitrogen, is gaining traction in the EU, India, and South Korea.
• SECI's tender, under the SIGHT programme of the National Green Hydrogen Mission, aimed to procure 724,000 tonnes of green ammonia annually for 13 fertilizer plants.
• The auction's success is attributed to clarity in price and offtake, providing producers with the market certainty needed for investment.
• Discovered prices of green ammonia are 40%-50% less than prices from the H2Global auction, narrowing the cost gap with grey ammonia.
• Pre-identified delivery points near coastal fertilizer plants enable efficient transportation of green ammonia via shipping.
• To sustain momentum, coordinated action is needed from policymakers, developers, and financiers, focusing on regulations, finance, and risk mitigation.
• Developers should focus on due diligence and transparent monitoring, while policymakers should provide stable regulations and safety standards.

Key Concepts Involved:

• Green Ammonia: Ammonia produced using renewable energy sources in the production of hydrogen.
• SIGHT Programme: Strategic Interventions for Green Hydrogen Transition, part of India's National Green Hydrogen Mission.
• Offtake Agreement: An agreement to purchase a specific amount of a product over a set period.