Posted on 11 Jun 2024
The Indian government-owned Solar Energy Corporation of India (SECI) has invited bids from ammonia producers for the supply of 539,000 tonnes/year of green ammonia, Kallanish reports.
The tender, opened last week, is part of the government’s INR 174.9 billion ($2.09 billion) Strategic Interventions for Green Hydrogen Transition (SIGHT) scheme. The producers will have until 31 July to submit their bids, following which SECI will hold a reverse auction to select 11 projects.
“The green ammonia producer shall be required to set up green ammonia production facilities for production and supply of green ammonia to SECI, including storage and transportation up to the delivery point, with the primary objective of maximising production of green ammonia in India, at its own cost,” the tender document notes.
SECI will enter a 10-year green ammonia purchase agreement (GAPA) with the selected bidders, with incentives available only for three years starting from the date of green ammonia production and supply to SECI. The incentives available are a maximum of INR 8.82/kilogram ($0.10/kg) of ammonia in the first year, INR 7.06/kg during the second year, and INR 5.30/kg during the third year. Bids with the lowest possible price will be selected as the winners.
To be eligible for the incentives, the producer must own the production line for the supply of green ammonia. In addition, they cannot have won green hydrogen production subsidies for the ammonia plant. Projects are also required to be fully commissioned a year ahead of the start of supply.
The ammonia will be used in fertiliser production and as such, SECI has specified delivery points across the east and west coasts, including the states of Gujarat, Andhra Pradesh, Karnataka, and Tamil Nadu.
Under the SIGHT program, the government has already allocated 410,000 t/y for green hydrogen production and 1.5 gigawatts of electrolyser capacity.
Source:Kallanish
