India Achieves Record Low ₹55.75/kg in First Green Ammonia Auction Under SIGHT

This first-of-its-kind auction involves the supply of 75,000 metric tonnes per annum (MTPA) of Green Ammonia to Paradeep Phosphates Limited, a major fertilizer manufacturer located in Odisha.

In a historic achievement under the National Green Hydrogen Mission, India has recorded its lowest-ever price for Green Ammonia at ₹55.75 per kilogram, marking a significant step in the country’s transition toward clean energy. The price was discovered during the first auction held by the Solar Energy Corporation of India (SECI) under the Strategic Interventions for Green Hydrogen Transition (SIGHT) Scheme Mode-2A, which supports the procurement of Green Hydrogen derivatives for industrial offtakers.

This first-of-its-kind auction involves the supply of 75,000 metric tonnes per annum (MTPA) of Green Ammonia to Paradeep Phosphates Limited, a major fertilizer manufacturer located in Odisha. The bid outcome represents not only an economic breakthrough but also a policy validation of India’s commitment to scaling up Green Hydrogen and its derivatives.

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Significant Price Drop Compared to Previous Auctions

The newly discovered price of ₹55.75/kg (approximately USD 641/MT) represents a dramatic 44% reduction from the previous benchmark of ₹100.28/kg (USD 1,153/MT), established during Germany’s H2Global auction in 2024.

More importantly, it brings Green Ammonia closer in cost to Grey Ammonia, which was trading at USD 515/MT as of March 2025. This narrowing price gap significantly strengthens the business case for industrial users—particularly in the fertilizer, petrochemical, and refining sectors—to shift away from fossil-based feedstocks to cleaner alternatives.

The winning bid is for a 10-year fixed-price supply, offering long-term price stability and predictability for the buyer, thus catalyzing investment decisions for downstream integration and clean technology adoption.

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Auction Signals Start of Major Procurement Drive

This auction is the first in a series of 13 auctions planned over the coming month under SECI’s Mode-2A procurement framework. These will cumulatively cover a total capacity of 7.24 lakh metric tonnes per year of Green Hydrogen derivatives, mainly Green Ammonia, across various sectors.

The procurement strategy is designed to aggregate demand from industrial offtakers, leverage economies of scale, and enable competitive price discovery, with SECI acting as the central intermediary procurer. The entity will oversee power offtake, payment assurance, and contract enforcement between producers and buyers.

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Institutional Support and Inter-Ministerial Coordination

The auction was anchored by SECI under the leadership of the Ministry of New & Renewable Energy (MNRE), with strategic collaboration from the Department of Fertilizers, which has been instrumental in identifying and onboarding early adopters such as Paradeep Phosphates.

This inter-ministerial cooperation reflects a whole-of-government approach to mainstreaming Green Hydrogen across priority sectors and creating market certainty for investors, developers, and industrial consumers.

The process was also backed by a robust payment security mechanism, ensuring risk mitigation for both suppliers and buyers—a key enabler in enhancing developer confidence and attracting aggressive bidding.

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Confidence and Competition Define Auction Dynamics

The auction attracted intense participation from developers, signaling strong confidence in India’s Green Hydrogen policy framework, which includes:

• Production-linked incentives (PLI)

• Viability gap funding mechanisms

• Priority access to renewable energy sources

• Facilitated land access and transmission infrastructure

Industry analysts noted that the competitive pricing is a reflection of lower project risks, maturing technologies, improved electrolyser efficiency, and de-risked offtake structures backed by government institutions.

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Implications for India’s Green Hydrogen Vision

This landmark auction aligns with India’s target of producing 5 million tonnes per annum of Green Hydrogen by 2030 and becoming a global export hub for Green Hydrogen and its derivatives, such as Green Ammonia, Methanol, and synthetic fuels.

Green Ammonia is particularly significant due to its existing use in fertilizers and its potential as a clean shipping fuel, energy carrier, and hydrogen storage medium.

“This price discovery is a watershed moment in India’s Green Hydrogen journey,” stated an MNRE official. “It demonstrates our ability to create viable, scalable markets for clean fuels while driving down prices.”

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Global Relevance and Strategic Opportunity

India’s entry into Green Ammonia procurement at internationally competitive prices enhances its position in the emerging global hydrogen economy. With several countries setting up green fuel mandates, carbon border taxes, and hydrogen diplomacy frameworks, India’s price-led approach makes it a formidable player in both domestic and export markets.

Additionally, India’s Green Ammonia could become a preferred option for countries in Europe, Japan, and South Korea, where decarbonization timelines are tighter, and local production is costlier.

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Looking Ahead: Scaling Up and Building the Value Chain

With this successful auction setting a new benchmark, SECI is now preparing for subsequent auctions in the pipeline, covering additional sectors and regional supply chains. Simultaneously, developers are ramping up investments in electrolysers, solar and wind energy integration, and ammonia production units.

Government agencies are also working on enabling:

• Green hydrogen corridors

• Port infrastructure for exports

• Dedicated financing and insurance instruments

• Certification standards for Green Hydrogen and derivatives

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A Bold Step Toward Decarbonized Industrial Growth

The record-low Green Ammonia price achieved in SECI’s auction is a turning point for India’s clean energy ambitions. By blending policy innovation, market facilitation, and industrial cooperation, India has taken a significant step toward industrial decarbonization, energy independence, and a sustainable green economy.

This success story will likely serve as a blueprint for other emerging economies seeking to participate in the global Green Hydrogen transition.