India boosts green ammonia allocation for fertilizer sector

The Ministry of New & Renewable Energy (MNRE) of India has announced a significant increase in the allocation for the fertilizer sector under the SIGHT Programme, a component of the National Green Hydrogen Mission (NGHM). The revised guidelines now allow for an annual production of 750,000 tonnes of green ammonia, up from the previous 550,000 tonnes.

Implemented on January 16, 2024, the SIGHT Programme—Component II: Incentive for Procurement of Green Ammonia Production (under Mode2A)—specifically addresses the needs of the fertilizer sector. This decision follows a Request for Selection (RfS) issued by the Solar Energy Corporation of India (SECI), which facilitated the selection of green ammonia producers through a competitive bidding process.

The increase in allocation comes in response to escalating demand for green hydrogen and its derivatives, driven by various sectors but particularly noted in fertilizer production. The Ministry’s amendment to the initial guidelines is designed to catalyze demand for green hydrogen, aligning with India’s broader objectives to enhance clean energy usage and reduce dependency on fossil fuel imports.

Launched on January 4, 2023, with a budget of 197.44 billion rupees ($2.36 billion)  to be utilized by the fiscal year 2029-30, the National Green Hydrogen Mission underlines India’s commitment to self-reliance and clean energy transition. The mission is expected to play a pivotal role in decarbonizing the economy and positioning India as a leader in green hydrogen technology and markets globally.