The Ministry of New and Renewable Energy (MNRE) in India has introduced a new scheme aimed at fostering the production of Green Ammonia in the country. President Droupadi Murmu has given the green light to the scheme, operating under “Mode-2A” of the Strategic Interventions for Green Hydrogen Transition (SIGHT) Programme, which falls under the broader National Green Hydrogen Mission (NGHM).
The objective of this initiative is to boost Green Ammonia production, enhance its cost competitiveness compared to fossil-based alternatives, and promote its widespread utilization. The implementation of the scheme will be overseen by the Solar Energy Corporation of India Limited (SECI), acting as the Implementing Agency.
Under the scheme, a direct incentive will be provided for a duration of three years based on the quantity of Green Ammonia produced and supplied. Beneficiaries will be selected through a competitive process, and the incentive structure entails Rs 8.82/kg in the first year, Rs 7.06/kg in the second year, and Rs 5.30/kg in the third year.
To qualify for incentives, bidders must ensure that the Green Hydrogen used aligns with criteria outlined in the ‘National Green Hydrogen Standard’ set by the MNRE. A Scheme Monitoring Committee, led by the Secretary of the Department of Fertilizers and the Secretary of MNRE, with the Mission Director of NGHM and other experts, will periodically review the implementation status and performance of Green Ammonia production capacities.
The National Green Hydrogen Mission, approved by the Central Government with an allocation of Rs 19,744 crore up to FY 2029-30, includes the SIGHT programme with an outlay of Rs 17,490 crore. This initiative encompasses financial incentives supporting domestic electrolyser manufacturing and Green Hydrogen production, aiming to facilitate rapid scale-up, technology development, and cost reduction.
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