New Delhi: Jakson Green has emerged as the lowest bidder for supplying 85,000 tonnes of green ammonia under the Strategic Interventions for Green Hydrogen Transition (SIGHT) scheme with a record price of Rs 50.75/kg for fertilizer firm Coromandel International’s Kakinada facility.
This is the lowest price discovered in any such tender so far, beating NTPC Renewable Energy’s Rs 51.8/kg offer for supply of 70,000 tonnes to Krishna Phoschem’s Meghnagar unit in a bid opened earlier this month. The price translates to roughly around $579.24/tonne.
Though not directly comparable, the price discovered in the last tender a year ago was at $1,153/tonne on cost and freight (CFR) basis in the H2Global auction.
Grey ammonia prices, which are currently trending lower than the clean or green variant, is at about $400/tonne, though it had reached $515/tonne in March, according to industry experts.
The tender from the Solar Energy Corporation of India (SECI) called for supply of green ammonia across 13 fertiliser plants totalling 724,000 tonnes.
The reverse auction for price discovery is being done separately for each plant and in phases because of the complexity of bid evaluation.
Procurers enlisted in the bidding document include Indian Farmers Fertiliser Cooperative (Iffco) in Kandla, Madras Fertilisers’ Manali and Chennai units, Indorama India in Haldia, Mangalore Chemicals & Fertilisers’ Panambur unit, and Coromandel International’s Visakhapatnam unit among others.
SECI anchored the demand aggregation and will sign long-term offtake agreements, providing producers with market certainty over a 10-year contract period.
The tender was issued in June 2024 and the last date was July 10 after many extensions over the year.
The government is offering financial incentives under the National Green Hydrogen Mission, with production-linked incentives (PLI) of Rs 8.82/kg, Rs 7.06/kg, and Rs 5.30/kg, respectively, for the first three years, amounting to a total support of Rs 1,533.4 crore.
India consumes approximately 17-19 million tonnes of ammonia annually, with more than 50% of its hydrogen requirement used in fertiliser production.
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Though not directly comparable, the price discovered in the last tender a year ago was at $1,153/tonne on cost and freight (CFR) basis in the H2Global auction.
Grey ammonia prices, which are currently trending lower than the clean or green variant, is at about $400/tonne, though it had reached $515/tonne in March, according to industry experts.
The tender from the Solar Energy Corporation of India (SECI) called for supply of green ammonia across 13 fertiliser plants totalling 724,000 tonnes.
The reverse auction for price discovery is being done separately for each plant and in phases because of the complexity of bid evaluation.
Procurers enlisted in the bidding document include Indian Farmers Fertiliser Cooperative (Iffco) in Kandla, Madras Fertilisers’ Manali and Chennai units, Indorama India in Haldia, Mangalore Chemicals & Fertilisers’ Panambur unit, and Coromandel International’s Visakhapatnam unit among others.
SECI anchored the demand aggregation and will sign long-term offtake agreements, providing producers with market certainty over a 10-year contract period.
The tender was issued in June 2024 and the last date was July 10 after many extensions over the year.
The government is offering financial incentives under the National Green Hydrogen Mission, with production-linked incentives (PLI) of Rs 8.82/kg, Rs 7.06/kg, and Rs 5.30/kg, respectively, for the first three years, amounting to a total support of Rs 1,533.4 crore.
India consumes approximately 17-19 million tonnes of ammonia annually, with more than 50% of its hydrogen requirement used in fertiliser production.
