Government unveils incentives for production of 550,000 MT of green ammonia

The Ministry of New and Renewable Energy (MNRE) has established the incentive implementation structure for generating and delivering green ammonia at the most economical rate through a competitive selection procedure within mode 2A of the strategic interventions for green hydrogen transition initiative. Within this framework, direct incentives for the production and distribution of green ammonia will be provided over a span of three years from the date of commencement. The entire budget for the green hydrogen and its derivatives production incentive scheme across all modes amounts to Rs 130.5 billion. During the initial year, the incentive stands at Rs 8.82 per kg, followed by Rs 7.06 per kg in the second year, and further reduced to Rs 5.30 per kg in the third year. Hydrogen and its derivatives produced and supplied under the SIGHT programme cannot simultaneously qualify for incentives under two distinct modes. The tranche I of mode 2A allows for the bidding of 550,000 metric tonnes (MT) per annum of green ammonia.