Skip to main content
Back to Current Affairs
EconomicsSource: Press Information Bureau

SECI Conducts First-Ever Auction for Procurement of Green Ammonia under National Green Hydrogen Mission

Friday, 8 August 2025
Read Original Article

Key Points

Last Updated: 2025-08-08. The Solar Energy Corporation of India (SECI) has conducted its first-ever auction for the procurement of Green Ammonia under the National Green Hydrogen Mission. This landmark event is crucial for UPSC aspirants, especially for General Studies Papers 2 and 3, as it highlights India's strides in renewable energy and sustainable development.

Key Facts About SECI's Green Ammonia Auction

  • SECI conducted its first auction for Green Ammonia under the SIGHT Scheme.
  • Part of the National Green Hydrogen Mission (NGHM).
  • Green Ammonia is produced using green hydrogen and nitrogen.
  • Used for climate-neutral fertilizers and zero-carbon fuels.
  • Can be stored and transported as a liquid.
  • Auction achieved a record low price of ₹55.75 per kg.
  • Covers supply of 75,000 metric tonnes per annum to Paradeep Phosphates Limited.
  • First in a series of 13 auctions aimed at 724,000 metric tonnes per year.
  • Price discovery is a significant drop from previous auctions.
  • Grey Ammonia prices reached USD 515 per metric tonne as of March 2025.
  • SECI acted as the intermediary procurer with MNRE's guidance.
  • Signifies a watershed moment in India's Green Hydrogen journey.
  • Reflects strong investor confidence in green energy transition.
  • Robust payment security mechanisms facilitate large-scale adoption.
  • Represents a significant step towards India's renewable energy goals.
  • Highlights India's vision of becoming a global hub for Green Hydrogen.

India's Green Energy Transition

The auction conducted by SECI is a pivotal moment in India's green energy transition, aligning with the nation's strategic goals of reducing carbon emissions and enhancing energy security. As India aims to become a global leader in Green Hydrogen, this initiative supports economic growth and positions the country favorably in international clean energy rankings. The record low price achieved in the auction is a testament to India's commitment to sustainable development and innovation in renewable energy.

Related Government Schemes/Policies

  • National Green Hydrogen Mission (NGHM): Aims to make India a global hub for the production and export of green hydrogen.
  • SIGHT Scheme: Supports the development and adoption of green hydrogen technologies.

UPSC Relevance

GS Paper 2: Government policies and interventions for development in various sectors and issues arising out of their design and implementation.

GS Paper 3: Infrastructure: Energy, Ports, Roads, Airports, Railways, etc.

Prelims angle: Questions on the National Green Hydrogen Mission, SECI's role, and the significance of Green Ammonia.

Mains angle: Analytical themes on India's energy transition, renewable energy policies, and global environmental commitments.

FAQ Section

  • What is Green Ammonia? Green Ammonia is produced using green hydrogen and nitrogen, serving as a climate-neutral fertilizer and zero-carbon fuel. It can be stored and transported as a liquid.
  • Why is the SECI auction important? The auction marks a significant milestone in India's clean energy transition, achieving a record low price of ₹55.75 per kg and demonstrating strong investor confidence in the green energy sector.
  • What are the key features of the National Green Hydrogen Mission? The mission aims to make India a global hub for green hydrogen production and export, supporting economic growth and reducing carbon emissions.

Detailed Coverage

  • SECI conducted its first auction for Green Ammonia under the SIGHT Scheme.
  • Part of the National Green Hydrogen Mission (NGHM).
  • Green Ammonia is produced using green hydrogen and nitrogen.
  • Used for climate-neutral fertilizers and zero-carbon fuels.
  • Can be stored and transported as a liquid.
  • Auction achieved a record low price of ₹55.75 per kg.
  • Covers supply of 75,000 metric tonnes per annum to Paradeep Phosphates Limited.
  • First in a series of 13 auctions aimed at 724,000 metric tonnes per year.
  • Price discovery is a significant drop from previous auctions.
  • Grey Ammonia prices reached USD 515 per metric tonne as of March 2025.
  • SECI acted as the intermediary procurer with MNRE's guidance.
  • Signifies a watershed moment in India's Green Hydrogen journey.
  • Reflects strong investor confidence in green energy transition.
  • Robust payment security mechanisms facilitate large-scale adoption.
  • Represents a significant step towards India's renewable energy goals.
  • Highlights India's vision of becoming a global hub for Green Hydrogen.
Economics

Practice Questions

Test your understanding of this article

Question 1 of 50 / 5 answered
1

In the context of the SIGHT Scheme's aim to strengthen the supply side of green hydrogen, which of the following scenarios best illustrates the potential impact of this initiative on India's energy security?