Centre enhances green ammonia allocation for fertilizer sector
New Delhi: Ministry of New & Renewable Energy (MNRE) is implementing the National Green Hydrogen Mission (NGHM) with a target to achieve production capacity of five million tonnes per annum of green hydrogen in the country by 2030.
Under the Mission, MNRE had issued the scheme guidelines for implementation of SIGHT Programme – Component II: Incentive for procurement of green production (under Mode2A) of the NGHM on January 16, 2024.
Mode 2A caters to the requirements of the fertilizer sector. As per guidelines, the capacity available for bidding under Tranche I of Mode 2A was 5,50,000 tonnes per annum of green ammonia. Thereafter, Solar Energy Corporation of India (SECI) also issued Request for Selection (RfS) for selection of green ammonia producers through a cost based competitive bidding process.
As the implementation of the mission is gaining traction, the demand of green hydrogen and its derivatives from various sectors is also increasing. In response to the increase in demand of green ammonia from the fertilizer sector, MNRE has decided to amend the scheme guidelines by increasing allocation under Mode 2A scheme for fertiliser sector by 2 lakh tonnes per annum i.e. the existing allocation of 5,50,000 tonnes per annum of green ammonia has been increased to 7,50,000 tonnes per annum.
This is a significant step towards demand creation of green hydrogen and its derivatives in the country.