9. India’s Leadership in the Global Green Ammonia Market (2026)

At the India Energy Week (IEW) 2026, India positioned itself as a global hub for clean energy, highlighting investment opportunities worth $500 billion. A central pillar of this transition is the successful auction of green ammonia under the SIGHT programme, which has set new global benchmarks for cost-competitiveness and market participation. Key Highlights of the Green Ammonia Auction • Strategic Procurement: The Solar Energy Corporation of India (SECI) concluded a landmark tender for 724,000 tonnes of green ammonia annually for 13 fertilizer plants, utilizing 10-year fixed-price offtake agreements. • Global Cost Benchmark: India discovered prices ranging between ₹49.75/kg and ₹64.74/kg ($572– $744/tonne), which is 40%-50% lower than European auctions (H2Global), nearly bridging the gap with conventional grey ammonia ($515/tonne). • Robust Market Participation: The auction attracted 15 bidders with 7 unique winners, demonstrating a mature competitive landscape compared to international counterparts like South Korea or the EU. • Incentive Framework: Successful bidders receive production subsidies (₹8.82, ₹7.06, and ₹5.3/kg over the first three years) under the Strategic Interventions for Green Hydrogen Transition (SIGHT) programme. • Logistical Advantage: By pre-identifying delivery points near coastal fertilizer plants, the model leverages maritime shipping, insulating India from global gas volatility and currency risks. • Import Substitution: The contracted volumes account for approximately 30% of India\'s current ammonia imports, significantly enhancing national energy independence and \'Aatmanirbharta.\' Definitions of Key Terms • Green Ammonia: Ammonia produced by combining nitrogen (from air) with green hydrogen (produced via electrolysis of water using renewable energy), resulting in zero carbon emissions. • Grey Ammonia: Ammonia produced using natural gas (methane) through the Haber-Bosch process, which releases significant CO2 as a byproduct. • Offtake Agreement: A legal contract between a producer and a buyer to purchase or even sell portions of the producer\'s future goods, providing \'bankability\' to the project. • Banking of Power: A mechanism allowing renewable energy producers to \'store\' surplus power with the grid and withdraw it when needed, crucial for continuous green hydrogen production. Constitutional and Legal Provisions • Article 48A (DPSP): Directs the State to protect and improve the environment, providing the constitutional basis for the National Green Hydrogen Mission. • National Green Hydrogen Mission (2023): The overarching policy framework aimed at making India a leading producer and supplier of Green Hydrogen in the world. • SIGHT Programme: A major financial component of the Mission, providing outlays for domestic manufacturing of electrolyzers and production of green hydrogen/ammonia. • Electricity (Promoting Renewable Energy Through Green Energy Open Access) Rules, 2022: Facilitates easier grid access and \'banking\' facilities for green energy developers. Additional Important Key Points with energy storage to provide a steady supply of power to electrolyzers. • Global Alignment: For sustained momentum, India is working to align its green certification frameworks with global standards (like the EU\'s RED II) to facilitate future exports. Conclusion and UPSC Relevance India’s green ammonia model represents a shift from being a \'technology adopter\' to a \'market shaper.\' By leveraging low-cost renewable energy and robust contract design, India is defining the global trajectory for clean hydrogen derivatives. For the UPSC Civil Services Exam, this is a high-priority topic for GS Paper III (Energy, Economy, and Environment). It specifically relates to \'Infrastructure: Energy,\' \'Investment Models,\' and \'Conservation and Pollution.\' Candidates should focus on how such missions reduce the fiscal burden of fertilizer subsidies and strengthen India\'s \'Energy Independence\' goals.