India sets new green ammonia targets, boosting green hydrogen mission

26 Jun 2024 CW Team

The Ministry of New & Renewable Energy (MNRE) has made a significant move to bolster the clean energy sector by updating the scheme guidelines for the National Green Hydrogen Mission (NGHM). The aim of this update is to achieve a production capacity of 5 million tonnes per annum of Green Hydrogen by 2030. It has been specified that the revised guidelines will increase the production capacity of Green Ammonia to meet the growing demand in the fertilizer sector.

Initially, the capacity set for bidding under the SIGHT Programme ? Component II: Incentive for Procurement of Green Ammonia Production (under Mode2A), which was established on January 16, 2024, was 550,000 tonnes per annum of Green Ammonia. However, due to the increasing demand, MNRE has decided to raise the allocation to 750,000 tonnes per annum. This adjustment is in line with the expanding requirements of the sector and supports the broader objectives of the NGHM.

It was stated that the Solar Energy Corporation of India (SECI) had previously issued a Request for Selection (RfS) for the selection of Green Ammonia Producers through a cost-based competitive bidding process. This process forms a cornerstone of the mission's strategy to promote a competitive and efficient market.

The National Green Hydrogen Mission, which was launched on January 4, 2023, with an expected investment of Rs. 19,744 crores by FY 2029-30, is crucial to India?s strategy for achieving energy self-reliance. It was emphasized that the mission aims not only to reduce the country's carbon footprint but also to decrease its reliance on fossil fuel imports. This initiative positions India as a global leader in Green Hydrogen technology and markets.

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