(Source: The Economic Times dated 8th August 2025)
Industry on High over Cheap Green Ammonia

Latest prices discovered under SIGHT scheme give boost to derivatives of green hydrogen in India
Shilpa Samant

New Delhi: The low prices for green ammonia, a derivative of green hydrogen, discovered in initial tenders for supply to fertiliser producers provides a much-needed boost and renews focus on its long -term potential, industry experts said.

NTPC Renewable Energy won the bid to supply 70,000 tonnes of green ammonia annually at ₹51.80/kg (about $0.62/kg) while ACME Cleantech won the contract for 75,000 tonnes at ₹55.75/kg (around $0.67/kg). Oriana Power will supply 60,000 tonnes.

These prices were discovered in reverse auctions for three of the 13 fertiliser units under the Strategic Interventions for Green Hydrogen Transition (SIGHT) scheme. Demand for these units was aggregated by Solar Energy Corporation of India at 724,000 tonnes of green ammonia annually. Auctions for the remaining units will continue till this month-end, said a government official.

“The recent winning auctions for green ammonia and the low price bode well for Indian green hydrogen ecosystem.” said Hemant Mallya, fellow, Council on Energy, Environment and Water (CEEW).

SECI termed the bids as “globally competitive record-low price”, setting new benchmarks for green hydrogen derivatives worldwide. NTPC’s price translates to $591/tonne, Acme at $641/tonne and Oriana at $596.23/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 competitive tariffs discovered in these auctions are driven by decline in cost of renewable power (including energy storage), electrolysers as well as available Production Linked Incentive (PLI),” said Pranav Master, senior practice leader and director- energy & sustainability at Crisil Intelligence.

“These tariffs imply a premium of 15% - 25% to grey ammonia, marking a rapid convergence,” he added.