Allocation for Bidding for Green Ammonia under SIGHT Programme enhanced

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Capacity available for bidding under Mode 2A of SIGHT programme is increased from 5,50,000 MT per annum to 7,50,000 tonnes per annum.

Mode 2A of SIGHT programme (Incentive for Procurement of Green Ammonia Production) provides selected bidder financial incentive for 3 years for Green Ammonia produced and supplied.
- Strategic Interventions for Green Hydrogen Transition (SIGHT) Programme is part of the National Green Hydrogen Mission.
Allocation was enhanced in response to the increase in demand of Green Ammonia from the fertilizer sector.

About Green Ammonia

Production: Green ammonia relies on renewable energy, and derives its hydrogen from water and its nitrogen from air.
- Conventional ammonia is produced using fossil fuels (natural gas) for hydrogen and energy, hence it is termed "brown ammonia”.
Significance:
- Reducing GHG emissions: Conventional ammonia production emits approximately 2 tonnes of CO2 per tonne of ammonia.
- Sustainable fuel: Green ammonia could be used for producing hydrogen (clean fuel). Thus, it enables efficient hydrogen transport and storage.
- Energy Generation: Can be used as a fuel in boilers, turbines, or engines for heat and electricity generation.
  - Compared with other forms of chemicals produced via renewable processes, ammonia has a high energy density.
Challenges: Requires new infrastructure, innovation and investment (hence more expensive).

It is produced using the Haber-Bosch process, where hydrogen and nitrogen are combined.
Around 70% of ammonia is used for fertilizers; the rest is used for industrial applications, including plastics, explosives, and synthetic fibres.
China is the largest producer of ammonia, accounting for 30% of production followed by US, the European Union, India, Russia and the Middle East.