INTERVIEW: India's SECI eyes renewable fuel expansion with emethanol tender

India's Solar Energy Corp. is advancing plans for a major renewable methanol tender and preparing for a likely rebid for renewable ammonia capacity, as the state-run agency positions the country as a cost-competitive supplier of low-carbon fuels and feedstocks.

SECI is finalizing specifications for an eMethanol tender that could total 500,000 metric tons/year or more, targeting buyers aligned with EU marine fuel regulations, Sanjay Sharma, director of solar at SECI, told Platts, part of E&P Global Energy July 2.

"The future for green fuels is very promising," Sharma said. "The Iran war has pushed conventional ammonia prices above $800/mt, while our green ammonia is around $567/mt."

The agency is also making progress on a joint tender with Germany's H2Global initiative and is fielding interest from Japanese buyers for the offtake of low-carbon hydrogen and ammonia derivatives, according to Sharma.

The renewable methanol tender is awaiting final input from the Ministry of New and Renewable Energy on key commercial terms, including the possibility of dollar-denominated contracts and a payment security mechanism, before SECI can issue the solicitation, he said.

"We'd like to finalize the tender as soon as possible," Sharma said. "A few inputs are still awaited from MNRE.... We also want additional stakeholder consultations before finally issuing it."

Emerging marine fuels market

Deendayal Port Authority, or Kandla Port, likely the primary buyer, has requested that the fuel meet the Renewable Fuels of Non-Biological Origin specifications under EU regulations, Sharma, a key official behind MNRE's renewable energy tenders and auctions, said.

The RFNBO standard requires the use of biogenic carbon dioxide sources, a point Sharma acknowledged could pose supply challenges for bidders.

"Availability of biogenic CO₂ may be an issue, but this is what it is — RFNBO allows industrial CO₂ (carbon capture) only for a limited period," he said. "So, bidders will need to get accustomed to using biogenic CO₂."

India's V.O. Chidambaranar Port has also expressed interest in purchasing renewable methanol but has not yet specified volumes, Sharma said. Initial consultations drew interest from 10-15 potential bidders, including hydrogen industry participants and new market entrants.

"We're not inclined to entertain very small bidding volumes because the qualifying conditions have to be manageable and there has to be proper competition," Sharma said.

At the same time, SECI aims to limit any single producer to no more than 50% of tendered capacity, based on SECI's 15 years of experience handling renewable energy tenders, including solar tenders for the rapidly growing Indian market, he added.

Ammonia rebid

SECI may rebid green ammonia capacity after two fertilizer buyers surrendered their allocations from previous auctions, he said. Madras Fertilizers is renovating its plant, while Gujarat Narmada Valley Fertilizers withdrew from the program.

"Rebidding for that capacity is likely... In fact, MNRE may decide to rebid the capacity with increased volumes," he said. "We're positive and confident that the hiccups in this tendering process are just minor challenges."

Despite near-term challenges in the tendering process, Sharma expressed confidence in the long-term trajectory of low-carbon fuel markets, as energy security drives countries to increasingly adopt renewable fuels.

SECI conducted its first renewable ammonia auction in July and August 2025, selecting seven developers as suppliers of 724,000 mt/year of renewable ammonia fuel at a delivered, weighted-average price of Rupees 53.27/kg (around $604/mt) for 13 fertilizer firms at that time.

For comparison, Platts assessed Middle East renewable-derived ammonia delivered into Far East Asia with high-capacity factors at $/645.47mt June 29, down 0.31% from a month ago.

Meanwhile, Platts assessed Low-carbon methanol FOB Shanghai at $915/mt July 3, down 0.54% from a month ago.

Strong global interest

The agency is also advancing discussions with H2Global on a joint tender structure under which India and Germany would equally share the cost of bridging the price gap between renewable fuel production and market prices, Sharma said.

"The process of formulating a joint tender is progressing well," Sharma said. "We will identify the producers here; they will find the offtakers. The price gap will be covered equally by the two countries from a pool of funds, the quantum of which will be decided."

Japanese buyers have expressed interest in sourcing low-carbon and renewable hydrogen, ammonia, and their derivatives from India, citing the country's cost advantages in renewable fuel production, he said.

"Cost-wise, India is much cheaper for renewable fuels, and they've shown interest in working with SECI for their requirements," Sharma said, adding that SECI and its Japanese counterpart have held a few meetings to discuss the prospects of working together.

Asia-Pacific could become a key driver of commercializing low-carbon hydrogen and its derivatives, as firm supply agreements, emerging infrastructure, and low production costs signal the region's ambition to anchor the global clean fuel trade.

"Looking at the severe impact of climate change, there is no doubt the renewable fuels market will develop at a fast pace," Sharma said.