Record-breaking Green Ammonia Auction Price: SECI sets new mark at Rs 55.75/kg for green hydrogen production
India Takes a Leap in Green Hydrogen Production with Successful Green Ammonia Auction
On the 7th of August, 2025, the Solar Energy Corporation of India (SECI) conducted the country's first auction for the procurement of Green Ammonia, marking a significant step in India's Green Hydrogen journey. This development is part of the National Green Hydrogen Mission, a government initiative aimed at producing 5 million metric tonnes (MMT) of green hydrogen annually by 2030 [1][3].
The auction was held under the SIGHT Scheme (Mode-2A) and was guided by the Ministry of New & Renewable Energy (MNRE). It saw intense competition, reflecting growing investor and developer confidence in India's green energy transition [7]. The auction was conducted by SECI, acting as the intermediary procurer.
The auction covered the supply of 75,000 metric tonnes per annum of Green Ammonia to Paradeep Phosphates Limited in Odisha. The cumulative procurement capacity targeted by these auctions is 7.24 lakh metric tonnes per year [2]. Compared to the March 2025 price of Grey Ammonia at USD 515/MT, this 10-year fixed-price bid offers a strong economic rationale for offtakers to begin their clean energy transition [6]. The discovered price of approximately USD 641 per metric tonne translates to Rs 55.75 per kilogram, a record low price discovery in the auction [4]. This is a significant decline from the Rs 100.28/kg (USD 1,153/MT) price found in the H2Global auction in 2024.
The success of this auction underscores the effectiveness of India's green energy transition framework. The auction's robust payment security mechanisms were designed to enhance trust across the value chain [5]. This is the first in a series of 13 auctions scheduled over the coming month.
The Union Cabinet approved the National Green Hydrogen Mission with a budget of Rs 19,744 crore [8]. The mission supports manufacturing electrolyzers, expanding renewable energy capacity, and establishing strategic hydrogen hubs to facilitate production, storage, and distribution [3].
However, it's important to note that the government's efforts to incentivize and award contracts related to green hydrogen and ammonia production have faced some challenges. For instance, SECI's tender for setting up green hydrogen hubs, which would include green ammonia production, was cancelled on July 4, 2025, and all related bids were rejected [5]. Despite this, the government continues to support green ammonia production through PLI allocations and strategic projects, with a focus on scaling electrolyzer manufacturing and renewable energy capacity [1][3].
In conclusion, India's first Green Ammonia auction is a testament to the country's commitment to green hydrogen and green ammonia development. While challenges remain, the government's continued support and the success of this auction bode well for India's goal of becoming a global hub for green hydrogen and its derivatives.
[1] India's Green Hydrogen Mission [2] India's Green Hydrogen Progress and Challenges [3] National Green Hydrogen Mission [4] Auction Results [5] SECI Cancels Green Hydrogen Hub Auction [6] Economic Rationale for Green Ammonia Auction [7] Auction Competition [8] Union Cabinet Approves National Green Hydrogen Mission
- The successful Green Ammonia auction in India, a part of the National Green Hydrogen Mission, highlights the country's progress in the renewable-energy industry, indicating a growing shift in energy policy-and-legislation towards sustainable alternatives.
- The finance sector is showing increasing confidence in India's green energy transition, as evident in the intense competition during the Green Ammonia auction, which was guided by the Ministry of New & Renewable Energy (MNRE).
- The auction results suggest a potential financial advantage for off-takers in the general-news sector to undertake their clean energy transition, with the discovered price of Green Ammonia being significantly lower than the price of Grey Ammonia in the preceding year.
