Green Hydrogen mission: Govt increases Green Ammonia allocation for fertiliser sector

The govt has decided to increase the allocation of Green Ammonia for the fertiliser sector under National Green Hydrogen Mission by 2 lakh tonnes/annum
Green Hydrogen mission: Govt increases Green Ammonia allocation for fertiliser sector
Green Hydrogen mission: Govt increases Green Ammonia allocation for fertiliser sectorPSU Watch

New Delhi: The government has decided to increase the allocation of Green Ammonia for the fertiliser sector under SIGHT Programme of the National Green Hydrogen Mission (NGHM) by 2 lakh tonnes per annum, revising it from 5.5 lakh tonnes per annum to 7.5 lakh tonnes per annum. The Ministry of New and Renewable Energy (MNRE), which is implementing the Mission, said, “As the implementation of the Mission is gaining traction, the demand of Green Hydrogen and its derivatives from various sectors is also increasing. In response to the increase in demand of Green Ammonia from the fertilizer sector, MNRE has decided to amend the Scheme Guidelines dated 16.01.2024 by increasing allocation under Mode 2A Scheme for Fertiliser sector by 2 lakh tonnes per annum i.e. the existing allocation of 5,50,000 tonnes per annum of Green Ammonia has been increased to 7,50,000 tonnes per annum. This is a significant step towards demand creation of Green Hydrogen and its derivatives in the country.”

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The MNRE has set a target to achieve a production capacity of 5 million tonnes per annum of Green Hydrogen in the country by 2030 under the NGHM.

National Green Hydrogen Mission

The National Green Hydrogen Mission was launched on January 4, 2023, with an outlay of Rs 19,744 crores and a timeline until FY 2029-30. It aims to contribute to India’s goal of becoming Aatmanirbhar (self-reliant) through clean energy.

Under the Mission, the MNRE issued the Scheme Guidelines for implementation of SIGHT Programme – Component II: Incentive for Procurement of Green Ammonia Production (under Mode2A) of the NGHM on January 16 this year. Mode 2A caters to the requirements of the fertiliser sector. As per the guidelines, the capacity available for bidding under Tranche I of Mode 2A was 5,50,000 tonnes per annum of Green Ammonia. Thereafter, Solar Energy Corporation of India (SECI) also issued Request for Selection (RfS) for the selection of Green Ammonia producers through a cost-based competitive bidding process. This limit has now been increased to 7.5 lakh tonnes per annum.

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“The Mission will lead to significant decarbonisation of the economy, reduced dependence on fossil fuel imports, and enable India to assume technology and market leadership in Green Hydrogen,” said the MNRE.

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