In News:

India has achieved a milestone in its clean energy transition with the discovery of a record-low price of ?55.75/kg (USD 641/MT) for Green Ammonia in the first-ever auction conducted by the Solar Energy Corporation of India (SECI) under the Strategic Interventions for Green Hydrogen Transition (SIGHT) Scheme, a core component of the National Green Hydrogen Mission (NGHM).

About the SIGHT Scheme

• Nature: Flagship financial mechanism under NGHM.
• Nodal Ministries: Ministry of New & Renewable Energy (MNRE) and Ministry of Petroleum & Natural Gas (MoPNG).
• Objective:
  • Scale up green hydrogen and its derivatives (like green ammonia).
  • Make them cost-competitive with fossil-based alternatives.
  • Create domestic demand across fertilizer, refining, and shipping sectors.
• Financial Outlay: ?17,490 crore (till 2029–30) out of the total NGHM budget of ?19,744 crore.
• Implementation Modes:
  • Mode 1: Incentives to lowest incentive seekers.
  • Mode 2A: Aggregated demand for Green Ammonia (fixed incentive).
  • Mode 2B: Aggregated demand for Green Hydrogen (fixed incentive).
• Incentive Structure (Mode 2B): ?50/kg (Year 1), ?40/kg (Year 2), ?30/kg (Year 3).
• Monitoring: A joint MNRE–MoPNG committee ensures compliance with notified green hydrogen standards.

First Green Ammonia Auction (Mode-2A)

• Winning Bid: ?55.75/kg (down from ?100.28/kg discovered in H2Global auction 2024).
• Quantity: 75,000 MTPA out of a total tendered 7.24 lakh MTPA.
• Offtaker:Paradeep Phosphates Ltd., Odisha.
• Contract: Fixed 10-year supply, ensuring price stability and supply chain reliability.
• Global Comparison: Price is slightly higher than grey ammonia (USD 515/MT, March 2025) but provides strong economic incentives for clean transition.