The ministry of new and renewable energy (MNRE) is spearheading the national green hydrogen mission (NGHM), aiming for a production capacity of five million tons of green hydrogen annually by 2030.
In alignment with this mission, the MNRE released the scheme guidelines for the SIGHT programme – component II: incentive for procurement of green ammonia production (under Mode 2A) on January 16, 2024.
Mode 2A is specifically designed to meet the fertilizer sector’s needs. Initially, the capacity for bidding under tranche I of Mode 2A was set at 5,50,000 tons of green ammonia per year. Following this, the Solar Energy Corporation of India (SECI) issued a Request for Selection (RfS) to choose green ammonia producers through a cost-based competitive bidding process.
As the mission progresses, the demand for green hydrogen and its derivatives is rising across various sectors. To meet the growing demand from the fertilizer sector, the MNRE has decided to amend the scheme guidelines issued on January 16, 2024, increasing the allocation under the mode 2A scheme by 2,00,000 tons per year.
The initial allocation of 5,50,000 tons of green ammonia per year has been raised to 7,50,000 tons per year. The move is a significant step towards boosting the demand for green hydrogen and its derivatives in India.
Launched on January 4, 2023, with an investment of ₹19,744 crore until FY 2029-30, the national green hydrogen mission aims to make India self-reliant in clean energy and inspire a global clean energy transition.
As reported by pib.gov.in, the mission is expected to significantly reduce the economy’s carbon footprint, decrease dependency on fossil fuel imports, and position India as a leader in green hydrogen technology and market.
