The green ammonia bidding scheme under India’s SIGHT program has begun to allow fertilizer plant visits, which will allow potential bidders to have information necessary for entering bids for producing ammonia on a “delivered” basis.
The visits will ensure that those bidding to produce the ammonia will have the necessary logistical information needed. The visits will be scheduled between Aug. 27 and Sept. 10. The current deadline for bids is Sept. 3, but that may be extended according to the Economic Times.
India introduced the bidding program for up to 550,000 mt/y of green ammonia earlier this year (GM June 21, p. 25) and then later increased the size of bids by 200,000 mt/y (GM June 28, p. 24). In the program, 10-year supply contracts will be awarded via a reverse auction to supply the volumes for the lowest price.
Winning
bids will also be awarded a three-year subsidy worth up to $0.11 per kg of
ammonia. The green ammonia is expected to be split across 11 different delivery
points at existing fertilizer plants along India’s east and west coasts.