India increases domestic green ammonia supply to the fertiliser sector

The Solar Energy Corporation of India, owned by the Indian government, is looking to provide an additional 1,000,000 metric tons of green ammonia produced locally to fertiliser manufacturers each year, its managing director announced on Friday. India wants to'reduce dependence on imported products.

SECI announced in March that local suppliers and fertiliser companies, including ACME Cleantech, a clean energy solution provider, and NTPC Green had signed agreements to offtake 724,000 tons green ammonia, a derivative from green hydrogen, which could 'cover one-third of the country's needs for the low carbon fuel.

Akash Tripathi, SECI's Akash, said that the proposal for a 1-million-ton delivery will be based solely on bids.

Tripathi, who spoke at an event of the Confederation?of Indian Industry on Friday, said that India's fertiliser industry uses approximately 20?million tonnes of grey hydrogen per year, either imported or produced using imported natural gas. Supplies have been disrupted due to?the Iran War.

Grey hydrogen is produced by steam-methane reforming of coal or natural gas.

India, backed by $2.1 billion in incentives, aims to produce five million tons of green hydrogen by 2030 to help decarbonise its industries and to ensure its energy security. India's initiative comes at a time when several Western countries are scaling back their ambitious green hydrogen goals, citing cost constraints and a slower than expected demand growth.

India's National Green Hydrogen Mission has lowered the price of green hydrogen to 279 Indian Rupees per kilogram (around $3), down from $5 per kilogram when it launched in 2023.

Under this initiative, heavyweights in the industry such as Larsen & Toubro Bharat Petroleum Corporation, GAIL, JSW Steel and Bharat Steel Corp produce about 8,000 tonnes of green 'hydrogen' and its derivatives each year. SECI secures supply by pooling demand.

Tripathi said SECI is also preparing tenders for green methanol aimed at the domestic market. He expected them to be issued within the next two month. ($1 = 95,2300 Indian Rupees) (Reporting and editing by Emelia Sithole Matarise; Reporting by Sethuraman N.R.)

(source: Reuters)