Source: ET
Context: India has achieved a record-low price of ₹55.75/kg for Green Ammonia in the first SECI auction under the Strategic Interventions for Green Hydrogen Transition (SIGHT) Scheme, marking a major step in the National Green Hydrogen Mission.
About Strategic Interventions for Green Hydrogen Transition (SIGHT) Scheme:
- What it is?
- A flagship financial component under the National Green Hydrogen Mission, aimed at catalyzing India’s transition to green hydrogen.
- Ministry: Implemented by Ministry of New and Renewable Energy (MNRE) along with Ministry of Petroleum and Natural Gas (MoPNG).
- Objectives:
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- Scale up Green Hydrogen production and use in India.
- Make green hydrogen cost-competitive with fossil alternatives.
- Create domestic demand across key sectors.
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- Mode 1: Incentives awarded to lowest incentive seeker.
- Mode 2A: Aggregated demand for Green Ammonia (fixed incentive).
- Mode 2B: Aggregated demand for Green Hydrogen (fixed incentive)
- Key Features of SIGHT Scheme:
- Outlay: ₹17,490 crore allocated under SIGHT out of ₹19,744 crore total mission budget, focused on incentives and infrastructure support.
- Incentive Rates (Mode 2B): ₹50/kg (Year 1), ₹40/kg (Year 2), ₹30/kg (Year 3) to promote early adoption and gradual market shift.
- Bidding Process: SECI and Oil PSUs conduct competitive reverse auctions to select lowest bidders and aggregate demand.
- Standard Compliance: Only hydrogen meeting notified “Green Hydrogen” standards is eligible for incentives.
- Monitoring: A joint MNRE–MoPNG committee oversees implementation, ensures compliance, and resolves issues.
About Green Ammonia in First SECI Auction (Mode-2A):
- What is Green Ammonia?
- Green Ammonia is ammonia (NH₃) produced from green hydrogen (via electrolysis using renewable power), a key derivative used in fertilisers, shipping fuel, and chemical manufacturing.
- Auction Highlights:
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- Winning price: ₹55.75/kg (USD 641/MT).
- Offtaker: Paradeep Phosphates Ltd., Odisha.
- Quantity: 75,000 MTPA out of 7.24 lakh MTPA total tender.
- Term: Fixed 10-year supply, improving affordability and supply chain reliability.
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- Boosts India’s clean fertiliser transition and import substitution.
- Encourages long-term private investment in green hydrogen derivatives.
- Positions India as a competitive green ammonia exporter.
