Key Takeaways

• NTPC Renewable Energy and ACME Cleantech secured significant bids for green ammonia, with prices set at ₹51.80/kg ($0.62/kg) and ₹55.75/kg ($0.67/kg), respectively.
• The auctions for green ammonia supply to fertiliser producers indicate a promising future for India’s green hydrogen economy.
• Current green ammonia prices represent a substantial decrease compared to previous tenders and showcase competitiveness against grey ammonia.

Boost for Green Ammonia Market

India is witnessing a surge in interest in green ammonia as initial tenders reveal low supply prices for this emerging market. NTPC Renewable Energy won a bid to supply 70,000 tonnes of green ammonia annually at a competitive rate of ₹51.80/kg (approximately $0.62/kg), while ACME Cleantech secured a contract for 75,000 tonnes at ₹55.75/kg (around $0.67/kg). Additionally, Oriana Power will supply 60,000 tonnes.

These prices were established during reverse auctions for three of the 13 fertilizer units participating in the Strategic Interventions for Green Hydrogen Transition (SIGHT) scheme. The Solar Energy Corporation of India aggregated demand for these units to 724,000 tonnes of green ammonia annually, with further auctions slated to continue until the end of the month.

Experts view these recent auction results as a positive sign for India’s green hydrogen ecosystem. Hemant Mallya from the Council on Energy, Environment and Water (CEEW) remarked that the low pricing marks a significant step forward. The Solar Energy Corporation of India characterized these bids as establishing “globally competitive record-low prices,” suggesting a new benchmark for green hydrogen derivatives on a global scale.

To put these new prices into context, NTPC’s pricing converts to $591/tonne, ACME’s to $641/tonne, and Oriana’s to $596.23/tonne. In stark contrast, prices from a similar tender a year ago averaged $1,153/tonne (CFR basis) in the H2Global auction, illustrating a considerable decrease.

Currently, the cost for grey ammonia, often viewed as the traditional and less environmentally friendly alternative, is trending around $400/tonne. However, this figure had previously peaked at $515/tonne in March, indicating its own fluctuation.

Industry specialists attribute the competitive pricing derived from these recent auctions to a decline in renewable energy costs, advancements in energy storage solutions, and the availability of Production Linked Incentives (PLI). Pranav Master, senior practice leader at Crisil Intelligence, noted that the tariffs imply a premium of 15%-25% over grey ammonia, suggesting a rapid convergence between the two products’ pricing.

Overall, these developments demonstrate a robust commitment to advancing India’s green hydrogen initiatives and indicate significant potential for further growth in the green ammonia sector, which is becoming increasingly essential for sustainable agricultural practices.

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