MNRE Expands Green Ammonia Production Capacity Under National Green Hydrogen Mission

New Delhi: The Ministry of New & Renewable Energy (MNRE) has announced a significant expansion in the National Green Hydrogen Mission (NGHM) to meet the growing demand for Green Hydrogen and its derivatives, particularly Green Ammonia, from various sectors.

Under the NGHM, MNRE aims to achieve a production capacity of 5 million tonnes per annum of Green Hydrogen by 2030. As part of this ambitious mission, the MNRE had issued Scheme Guidelines on January 16, 2024, for the implementation of the SIGHT Programme – Component II: Incentive for Procurement of Green Ammonia Production (Mode 2A). This component specifically addresses the needs of the fertilizer sector, initially setting a capacity of 5,50,000 tonnes per annum for bidding under Tranche I.

In response to the increasing demand from the fertilizer sector, MNRE has decided to amend the Scheme Guidelines, raising the allocation for Green Ammonia under Mode 2A by 2 lakh tonnes per annum. This adjustment brings the total allocation to 7,50,000 tonnes per annum, marking a significant step towards boosting the production and demand for Green Hydrogen and its derivatives within the country.

The Solar Energy Corporation of India (SECI) had previously issued a Request for Selection (RfS) for Green Ammonia Producers through a cost-based competitive bidding process. This move aligns with the broader objectives of the NGHM, aiming to stimulate demand and foster a robust market for Green Hydrogen.

The National Green Hydrogen Mission, launched on January 4, 2023, with an outlay of Rs. 19,744 crores up to FY 2029-30, is a cornerstone of India’s strategy to achieve Aatmanirbhar Bharat (self-reliant India) through clean energy initiatives. The mission is expected to significantly decarbonize the economy, reduce reliance on fossil fuel imports, and position India as a leader in Green Hydrogen technology and markets.