New Delhi, 22 June 2024 – The Government of India has announced an increase in the allocation for the fertilizer sector under the SIGHT (Strategic Interventions for Green Hydrogen Transition) Programme of the National Green Hydrogen Mission (NGHM). The allocation for green ammonia production has been raised from 5.5 lakh tonnes per annum to 7.5 lakh tonnes per annum, reflecting a significant boost in the sector’s capacity.
The Ministry of New & Renewable Energy (MNRE), which is spearheading the NGHM, aims to achieve a production capacity of 5 million tonnes of green hydrogen per annum by 2030. This increase in allocation aligns with the growing demand for green hydrogen and its derivatives, particularly green ammonia, which is crucial for the fertilizer industry.
Background and Mission Objectives
The National Green Hydrogen Mission, launched on 4th January 2023, aims to make India a global leader in green hydrogen technology and production. With a financial outlay of ₹19,744 crores allocated until the fiscal year 2029-30, the mission is central to India’s strategy for achieving self-reliance in clean energy and reducing carbon emissions.
The SIGHT Programme, under the NGHM, includes specific incentives for the procurement of green ammonia, a critical component for producing eco-friendly fertilizers. The initial guidelines, issued on 16th January 2024, set the capacity for the fertilizer sector at 5.5 lakh tonnes per annum under Mode 2A of the programme.
Enhanced Allocation Details
In response to the escalating demand for green ammonia from the fertilizer sector, the MNRE has amended the Scheme Guidelines to increase the allocation by 2 lakh tonnes per annum. This amendment raises the total allocation for green ammonia production to 7.5 lakh tonnes per annum.
Solar Energy Corporation of India (SECI), a key implementation partner, has already issued a Request for Selection (RfS) for green ammonia producers through a cost-based competitive bidding process. This move ensures that the increased capacity will be effectively utilized to meet the growing market demands.
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Impact on the Fertilizer Sector and Green Hydrogen Market
The enhanced allocation is expected to:
- Stimulate Demand: By increasing the availability of green ammonia, the government is fostering greater demand for green hydrogen and its derivatives. This will likely lead to more investments in green hydrogen production infrastructure.
- Promote Decarbonization: The use of green ammonia in the fertilizer sector will help reduce carbon emissions, contributing to India’s broader climate goals.
- Strengthen Self-Reliance: The increased production capacity will reduce dependence on fossil fuel imports, aligning with the national goal of becoming Aatmanirbhar (self-reliant).
- Position India as a Global Leader: The move is part of India’s strategy to take a leadership role in the global clean energy transition, particularly in green hydrogen technology.
Future Prospects and Global Leadership
The National Green Hydrogen Mission is pivotal in positioning India as a leader in the global clean energy market. By enhancing the capacity for green ammonia production, India not only addresses domestic energy needs but also sets a precedent for other nations to follow.
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