Jakson Green has formalized a definitive Green Ammonia Purchase Agreement (GAPA) with the Solar Energy Corporation of India Limited (SECI), representing a landmark transaction in India’s burgeoning sustainable energy sector. The agreement, carrying a total contract valuation of $465 million, establishes a commitment for the production and supply of 85,000 metric tonnes per annum (MTPA) of Green Ammonia. The project is slated to reach its Scheduled Commencement-of-Supply Date (SCSD) in 2029.
Financial and Capacity Specifications
The commercial framework of this agreement is valued at $465 million, with Jakson Green designated to provide an annual production capacity of 85,000 MTPA. This award is a significant component of the recently expanded Tranche I under Mode-2A, which saw its total available capacity increased from 550,000 MTPA to 750,000 MTPA per the Ministry of New and Renewable Energy (MNRE) amendment dated June 21, 2024.
The “Standard Green Ammonia Purchase Agreement” (GAPA) serves as the definitive legal framework for establishing the production facilities. Under this structure, SECI operates as the “Intermediary Procurer” or “Buyer,” acquiring the product on a back-to-back basis. This procurement is structurally linked to a corresponding Green Ammonia Sale Agreement (GASA) executed between SECI and the end-user, ensuring a seamless value chain from production to industrial application.
Regulatory Alignment: National Green Hydrogen Mission and SIGHT Programme
This GAPA is a strategic realization of the National Green Hydrogen Mission, which operates with a total governmental outlay of Rs. 19,744 Crore through FY 2029-30. Central to this mission is the Strategic Interventions for Green Hydrogen Transition (SIGHT) programme, allocated Rs. 17,490 Crore.
The project falls under “Component II: Incentive for Procurement of Green Ammonia Production (Mode-2A),” a mode specifically designed for demand aggregation to enhance the cost-competitiveness of green derivatives against fossil-based alternatives. The incentive structure provides fixed direct payouts for the first three years of supply:
- Year 1: Rs. 8.82 per kg
- Year 2: Rs. 7.06 per kg
- Year 3: Rs. 5.30 per kg
In accordance with Para 5.5.1 of the SIGHT guidelines, the annual incentive payout is calculated based on the allocated capacity or actual production and supply in that year, whichever is lower.
Procurement Process and Sourcing Standards
The selection of Jakson Green followed a “Tariff Based Competitive Bid Process.” To maintain eligibility for incentives and ensure compliance with the GAPA, the production must meet rigorous technical benchmarks:
- Production Method: Ammonia must be synthesized via Green Hydrogen and a Renewable Energy operated Haber Bosch Process, incorporating an Air Separation Unit (ASU).
- Sourcing: All Green Hydrogen must comply with the “National Green Hydrogen Standard” as notified by the MNRE.
- Equivalence Factor: Facilities must adhere to a specified conversion factor of 0.1765 kg of Green Hydrogen per 1 kg of Green Ammonia.
Logistics, Delivery, and End-User
The product is earmarked for Coromandel International Limited in Kakinada. The GAPA defines the logistics and transfer of risk at the delivery point as follows:
- Rail, Ship, or Trucking: The delivery point is the specific location at the Procurer’s facility where the transport vehicle comes to rest and the product is transferred to the facility’s storage or processing units.
- Pipeline: The delivery point is the discharge side of the product flow meter located at the Procurer’s facility.
The project is currently tracking toward an SCSD in 2029 for the formal commencement of commercial off-take.
Implementation Oversight
The implementation and performance of the awarded capacities are subject to multi-agency oversight. While the MNRE acts as the primary governing ministry and SECI serves as the Implementing Agency, progress is monitored by the Scheme Monitoring Committee (SMC). This committee is co-chaired by the Secretary of the Department of Fertilizers and the Secretary of MNRE, and includes the Mission Director of the National Green Hydrogen Mission (NGHM) to ensure project alignment with national decarbonization and industrial goals.
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