The government enhances allocation for the Fertilizer Sector under the SIGHT Programme of the National Green Hydrogen Mission (NGHM)

Sub: Schemes

Sec: Sci

Context:

Allocation for the fertilizer sector increased from 5.5 lakh tonnes per annum to 7.5 lakh tonnes per annum of Green Ammonia.

National Green Hydrogen Mission (NGHM):

The National Green Hydrogen Mission (NGHM) aims to achieve a production capacity of 5 million tonnes per annum of Green Hydrogen by 2030.
Initiated on January 4, 2023, with a budget of Rs. 19,744 crores, the mission aligns with India’s Aatmanirbhar (self-reliant) vision and global Clean Energy Transition goals.

Strategic Interventions for Green Hydrogen Transition (SIGHT) Programme:

Aim of the programme:
- Component I: It aims at providing electrolyzer manufacturing incentives with a total outlay of INR 4440 crore
- Component II: It focuses on green hydrogen production with a financial outlay of INR 13050 crore.
Implementing agency: The Solar Energy Corporation of India (SECI) would be the implementing agency responsible for the scheme’s execution.
Under the NGHM, the Ministry of New & Renewable Energy (MNRE) issued guidelines for the SIGHT Programme, specifically Component II: Incentive for Procurement of Green Ammonia Production (Mode 2A) on January 16, 2024. This component targets the fertilizer sector.
Bidding Process: The Solar Energy Corporation of India (SECI) released a Request for Selection (RfS) to choose Green Ammonia producers through a cost-based competitive bidding process.

Increased Demand and Amendment:

Due to the growing demand for Green Hydrogen and its derivatives, particularly Green Ammonia in the fertilizer sector, MNRE has increased the allocation under Mode 2A by 2 lakh tonnes per annum.

Significance:

Decarbonization: The mission aims to significantly decarbonize the economy and reduce dependence on fossil fuel imports.
It positions India as a leader in Green Hydrogen technology and market, inspiring global clean energy initiatives.

About Green Ammonia:

It is produced by using hydrogen from water electrolysis and nitrogen separated from the air.
These are then fed into the Haber process (also known as Haber-Bosch) which is powered by sustainable electricity.
In the Haber process, hydrogen and nitrogen are reacted together at high temperatures and pressures to produce ammonia, NH3.
Green ammonia production is where the process of making ammonia is 100% renewable and carbon-free.
It can be used in:
- Fuel for engines such as locomotives and shipping, replacing diesel and marine fuel oil
- Fuel source for electricity and power generation
- Building block to make fertilisers for use in agriculture;
- Feedstock for industrial and manufacturing applications ranging from water purification through to pharmaceuticals

Source: PIB