Government Unveils Incentives Framework for Production of 550,000 Metric Tons of Green Ammonia
The Ministry of New and Renewable Energy (MNRE) in India has recently established a comprehensive incentive framework for producing and supplying green ammonia.
The Ministry of New and Renewable Energy (MNRE) in India has recently established a comprehensive incentive framework for producing and supplying green ammonia.
Overview of the SIGHT Program and Incentive Structure
The initial capacity for bidding under Tranche I of Mode 2A is set at 550,000 MT per annum of green ammonia. SECI holds the authority to set minimum and maximum capacity limits for bids.
Capacity Allocation and Bidding Process
To qualify for the incentives, producers must adhere to the ‘National Green Hydrogen Standard’ set by MNRE. This standard dictates the quantity of green hydrogen used per kg of green ammonia, directly influencing the incentive amount.
Green Hydrogen Standards
Bidders interested in participating in the program must meet specific financial criteria, including a net worth of at least ₹50 million (~$601,181) per 1,000 MT/Annum of quoted production and supply capacity.
Eligibility Criteria for Bidders
The introduction of such programs is expected to significantly boost the production of green ammonia, contributing to India’s renewable energy goals and reducing its carbon footprint.