NTPC Renewable Energy has emerged as the winner of the Solar Energy Corporation of India’s (SECI) auction to supply 75,000 tons per annum (TPA) of green ammonia under the SIGHT (Strategic Interventions for Green Hydrogen Transition) program. This auction was conducted under Mode-2A, Tranche-I of the scheme, reports MERCOM.
NTPC secured the bid with a quoted tariff of ₹51.8 per kilogram (approximately $0.591), which translates to about $591 per metric ton. This is a significant reduction from the previously discovered price of $641 per metric ton, marking a drop of nearly 8%. SECI said the ten-year fixed-price bid gives offtakers like Krishana Phoschem, which will receive the green ammonia in Meghnagar, Madhya Pradesh, a strong financial incentive to begin their clean energy transition.
The tender, initially released in June 2024, was later expanded to cover additional projects. As per the bid conditions, NTPC Renewable Energy will be responsible for setting up its own green ammonia production facilities, obtaining all necessary permits, identifying and securing land, and overseeing production, storage, and delivery to the designated delivery point.
The project requires that the awarded capacity must be produced and delivered directly by NTPC, with no allowance for trading or arbitrage. However, up to 10% of the annual committed volume may be sourced from third parties or alternative sources.
To power the production process, NTPC can use renewable energy from either co-located or remotely located sources. These energy sources can be owned either by NTPC or a third party. Renewable electricity can also be sourced from power exchanges to support the operation.
This project falls under India’s broader National Green Hydrogen Mission, which was approved by the Union Cabinet with a total budget of ₹197.44 billion (approximately $2.3 billion). Of this, ₹174.9 billion (~$1.99 billion) has been allocated for the SIGHT program alone. The rest is earmarked for pilot projects, research and development, and other mission components.
The SECI auction win marks a significant step forward for NTPC Renewable Energy and adds momentum to India’s green hydrogen and ammonia ambitions.
