India's Green Hydrogen Mission Gains Traction with Increased Allocation for Green Ammonia Production
Key Ideas
  • The Ministry of New and Renewable Energy in India is leading the National Green Hydrogen Mission to achieve a production capacity of five million tons of green hydrogen by 2030.
  • The ministry has issued guidelines for the implementation of the SIGHT Programme Component II, focusing on incentivizing green ammonia production in the fertilizer sector.
  • Initial capacity available for bidding was set at 550,000 tons of green ammonia per year, with an increase to 7,50,000 tons following amendments to the guidelines.
  • The move to increase allocation for green ammonia production signifies a positive step towards meeting the rising demand for green hydrogen and its derivatives in India.
The Ministry of New and Renewable Energy (MNRE) in India is at the forefront of driving the National Green Hydrogen Mission (NGHM) with the objective of achieving a significant production capacity of five million tons of green hydrogen annually by 2030. To support this mission, MNRE has introduced guidelines for the implementation of the SIGHT Programme – Component II, which specifically targets the incentivization of green ammonia production in the fertilizer sector. Initially, the capacity available for bidding under this program was 550,000 tons per year. Subsequently, the Solar Energy Corporation of India (SECI) initiated a competitive bidding process through a Request for Selection (RfS) to identify green ammonia producers. Following the growing demand for green hydrogen and its derivatives, MNRE has decided to enhance the guidelines by increasing the allocation for green ammonia production. The recent amendment raised the total allocation under the mode 2A scheme for the fertilizer sector to 7,50,000 tons per year, an increase of 2,00,000 tons. This adjustment is seen as a significant move towards fulfilling the escalating demand for green hydrogen and its related products in various sectors within India.
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