Record-Breaking Green Ammonia Auction Prices: SECI Sets New Standard at Rs 55.75/kg for Green Hydrogen Production
In a significant stride for India's Green Hydrogen Mission, the Solar Energy Corporation of India (SECI) conducted the country's first-ever auction for the procurement of Green Ammonia under the National Green Hydrogen Mission on August 7, 2025. This auction marks a pivotal step in India's Green Hydrogen journey and reinforces the nation's vision of emerging as a global hub for Green Hydrogen production.
The intense competition during the auction reflects growing investor and developer confidence in India's green energy transition framework. The auction, guided by the Ministry of New & Renewable Energy (MNRE), covered the supply of 75,000 metric tonnes per annum of Green Ammonia to Paradeep Phosphates Limited in Odisha.
The record low price discovery in the auction, Rs 55.75 per kilogram, is a significant drop from previously recorded rates. 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.
The auction is the first in a series of 13 auctions scheduled over the coming month, under a larger tender targeting a cumulative procurement capacity of 7.24 lakh metric tonnes per year. This development further strengthens the economic rationale for the clean energy transition, as it aims to achieve a price comparable to Grey Ammonia.
The Green Hydrogen Mission, launched in 2023, has made significant strides, aiming for an annual production capacity of 5 million metric tonnes of green hydrogen by 2030. To support this ambitious goal, the mission has awarded 3,000 MW of electrolyzer manufacturing contracts to 15 companies and allocated 8.5 kilotonnes of green hydrogen production under Production Linked Incentive (PLI) tenders to 18 companies. Additionally, 7.4 kilotonnes of green ammonia have been assigned for fertilizer and other applications.
However, despite these announcements, only a small fraction of projects have reached the Final Investment Decision (FID) stage, indicating challenges in financing, infrastructure, electricity costs, and capital equipment availability. The government remains committed to overcoming these barriers to meet its 2030 targets and establish India as a green hydrogen export leader.
Robust payment security mechanisms built into the scheme further enhance trust across the value chain. The Union Cabinet approved the National Green Hydrogen Mission with a budget of Rs 19,744 crore, which will support production incentives, R&D, infrastructure, and strategic hydrogen hubs.
With the successful Green Ammonia auction, India's Green Hydrogen Mission is progressing with institutional support, auctions, and project awards but still faces substantial execution and scaling challenges. This development is a significant step towards India's clean energy transition and its climate goals, targeting a reduction of 50 million metric tonnes of CO₂ emissions annually and substantial foreign exchange savings from reduced fossil fuel imports.
[References] 1. India's Green Hydrogen Mission 2. India's Green Hydrogen Mission: Aiming for 5 Million MT by 2030 3. India's Green Hydrogen Mission: Challenges and Opportunities 4. Govt Approves Rs 19,744-cr National Green Hydrogen Mission 5. India's Green Hydrogen Mission: Pilot Projects and Deployment
The Green Hydrogen Mission, aiming for an annual production capacity of 5 million metric tonnes of green hydrogen by 2030, has been augmented with the successful auction of Green Ammonia, signifying a step forward in India's transition to renewable energy. This transition, informed by the Nation's Financial commitment of Rs 19,744 crore, is anticipated to reduce 50 million metric tonnes of CO₂ emissions annually, providing substantial foreign exchange savings from reduced fossil fuel imports. However, challenges persist in financing, infrastructure development, electricity costs, and capital equipment availability, necessitating the government's continued commitment to overcoming these barriers. The success of the Green Hydrogen Mission will contribute significantly to India's environmental science goals and climate change mitigation efforts within the industry.
