Context

• At India Energy Week (IEW) 2026, investment opportunities worth nearly $500 billion were announced in the energy sector, reflecting a transition from energy security to energy independence.
• The long-term success of this shift depends on affordable clean fuels, particularly green hydrogen and its derivative green ammonia.
• Owing to its practicality and scalability, green ammonia is emerging as a central component of India’s clean-energy pathway and a potential influence on global energy markets.

Understanding Green Ammonia

• What is Green Ammonia?
  • Green ammonia is produced by combining nitrogen with hydrogen generated using renewable electricity.
  • Unlike grey ammonia, which depends on fossil fuels, it is largely carbon-free and aligns with decarbonisation goals.
• Why It Matters and Its Application
  • Hydrogen faces challenges of storage and transport. Green ammonia resolves these constraints because it can be liquefied, stored, and shipped using existing infrastructure.
  • It therefore acts as a practical carrier of hydrogen energy. Green ammonia has multiple uses:
    • Fertiliser production
    • Marine fuel for shipping
    • Power generation
    • Industrial processes
  • Its versatility enables large-scale adoption of clean fuel systems.

Creating a Market: The Role of Procurement Mechanisms

• Energy transitions require functioning markets. Governments have introduced aggregated procurement systems to guarantee demand and reduce investor uncertainty.
• Major initiatives include the European Union’s H2Global programme, South Korea’s Clean Hydrogen Portfolio Standard, and India’s SIGHT (Strategic Interventions for Green Hydrogen Transition) programme under the National Green Hydrogen Mission.
• These mechanisms encourage private participation by ensuring predictable demand and revenue streams.

India’s Green Ammonia Auction Model

• The SECI Tender
  • The Solar Energy Corporation of India (SECI) issued a tender in 2024 to procure 724,000 tonnes of green ammonia annually for 13 fertiliser plants.
  • Successful bidders received 10-year offtake agreements and initial production subsidies, creating strong investment certainty.
• Participation and Outcomes
  • Fifteen companies participated and seven secured thirteen contracts, including a large allocation of 370,000 tonnes annually to a single bidder.
  • Revisions to the tender addressed risk allocation, payment security, and pricing clarity, producing a balanced framework acceptable to both producers and buyers.

Economic Viability and Price Competitiveness

• Price Discovery
  • Prices ranged from ₹49.75–₹64.74 per kg (about $572–$744 per tonne). Conventional grey ammonia costs roughly $515 per tonne.
  • The gap narrowed significantly due to subsidies and long-term contracts, improving commercial feasibility.
• Global Significance
  • Auction prices were about 40–50% lower than some international benchmarks, establishing strong price competitiveness and demonstrating the economic practicality of clean fuels.

Logistics, Infrastructure, and Strategic Benefits

• Delivery and Transportation
  • Pre-identified delivery points were located near coastal fertiliser plants, enabling efficient shipping logistics and reduced transport costs.
• Economic and Strategic Impact
  • The contracted supply could replace nearly 30% of imports, lowering exposure to gas price volatility, currency fluctuations, and geopolitical risks.
  • In regions with higher production costs, green ammonia becomes particularly attractive for scaling.

India’s Global Leadership Potential

• India combines low renewable costs, a large domestic fertiliser market, effective contract design, and targeted incentives.
• Many countries seeking clean fuels for industry, power generation, and transport may rely on imports, positioning India as a major exporter and potential architect of a new clean-fuel trade network.

Challenges and Policy Requirements

• Responsibilities of Developers
  • Project developers must ensure technical due diligence, integrate hybrid renewable systems with storage, and maintain transparent monitoring for long-term reliability.
• Responsibilities of Policymakers
  • Authorities need stable regulatory frameworks, reliable grid access, clear energy banking rules, strengthened safety standards, and internationally aligned certification systems.
• Financial Support
  • Expansion requires blended finance, extended contracts, and risk-mitigation instruments to improve project bankability and attract private capital.

Conclusion

• India’s green ammonia initiative demonstrates that environmental sustainability and economic growth can progress together.
• By combining incentives, assured demand, and infrastructure planning, clean fuels are approaching commercial viability.
• Continued regulatory stability and financial support can help achieve energy independence while fostering a global clean-fuel market, positioning India as a significant leader in the twenty-first-century energy economy.