SECI Invites Bids for Green Ammonia Production Under SIGHT Program

Solar Energy Corporation of India (SECI) has invited bids for the production and supply of green ammonia in India through cost-based competitive bidding under strategic interventions for the green hydrogen transition (SIGHT) program.

The last date for the submission of bids is July 29, 2024.

The Union Cabinet last year sanctioned the National Green Hydrogen Mission with a budget of ₹197.4 billion (~$2.3 billion)up to 2029-30. A key financial initiative under this mission was the SIGHT program, which has an allocation of ₹174.9 billion (~$2.09 billion).

This program introduces two separate financial incentive mechanisms designed to boost domestic electrolyzer manufacturing and the production of green hydrogen.

These incentives facilitate swift expansion, technological advancement, and cost reduction.

Bidders must submit a document fee of ₹25,000 (~$299.4) and a bid processing fee of ₹1.5 million (~$17,966).

Bidders must also submit an earnest money deposit of ₹5,000 (~$59.8) per MT corresponding to the cumulative annual production and supply capacity of green ammonia for the quoted projects.

The successful bidders have to submit a performance bank guarantee of ₹12,500 (~$149.7) per MT corresponding to the cumulative annual production and supply capacity of green ammonia for the allocated projects to them.

Bidders from a country sharing a land border with India can participate in this tender if registered with the competent authority.

Bidders must produce and supply green ammonia according to the supply schedule. The annual production and supply requirements are for the entire term of the green ammonia purchase agreement.

The supplier must ensure that the supplied quantity is at least 90% of the annual requirement specified by the procurer for the term of the agreement.

Shortfalls in green ammonia supply due to force majeure events, as identified under the agreement with SECI, will not be considered a breach of supply obligations.

The annual supply of green ammonia will be calculated for each contract year, starting when the production facility supplies green ammonia.

If, in any contract year, the supplier fails to meet the minimum permissible annual supply value, and this shortfall is primarily due to the supplier’s reasons, the shortfall will be addressed according to the provisions of the agreement.

The net worth of the bidders should be at least ₹50 million (~$598,781) per thousand MT per annum of the quoted annual production and supply capacity of green ammonia as of the last date of the financial year 2023-24.

SECI recently invited bids for the design, engineering, supply, construction, erection, testing, commissioning, and operation and maintenance of a 25 MW solar power project with a 20 MW/50 MWh battery energy storage system in Leh, Ladakh.

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