What is Green Ammonia Scheme?

The Indian government is starting a major auction process to encourage the production of green ammonia as part of its Strategic Interventions for Green Hydrogen Transition (SIGHT) Scheme. This effort is aimed at helping India move towards cleaner and more sustainable energy sources by supporting the creation of green hydrogen and its related products.

Purpose of Company Visits

To help companies interested in producing green ammonia, the government is arranging visits to fertilizer production facilities. These visits will take place from August 27 to September 10 and are meant to give companies a better understanding of the logistics and supply chains involved. By seeing the operations firsthand, companies can gather important information that will help them make accurate bids based on the cost of delivering green ammonia.

Timeline for Bids

Companies that want to visit the sites must submit their requests to the Solar Energy Corporation of India (SECI) by August 22. The deadline for submitting bids to produce green ammonia is September 3, though it is likely that this deadline will be extended.

What the SIGHT Scheme Is About

The SIGHT Scheme is a key part of India’s National Green Hydrogen Mission and has a budget of Rs 17,490 crore. It focuses on supporting the manufacturing of electrolysers (devices that split water into hydrogen and oxygen using electricity) and the production of green hydrogen. This scheme is designed to promote the use of renewable energy across India.

Role of SECI

SECI, the Solar Energy Corporation of India, will play a central role in managing the auction process. They will handle the purchase agreements between the companies bidding to produce green ammonia and the buyers who will purchase it, ensuring that the production and distribution processes are well-organized.

Demand from the Fertiliser Industry

The fertilizer industry is one of the main users of hydrogen, which is crucial for making ammonia—a key ingredient in nitrogen-based fertilizers. Major fertilizer companies like IFFCO, Madras Fertilisers, and Coromandel International, with a combined production capacity of 739,000 tonnes per year, are expected to be the primary buyers in this auction. This initiative marks India’s first nationally coordinated effort to promote the production of green ammonia. It represents a significant step toward a future of sustainable energy and aims to improve the efficiency of fertilizer production in the country.

Month: Current Affairs - August, 2024

Category: Government Schemes Current Affairs