India fuels green ammonia production
This will be supported by imports from Japan, Singapore, and South Korea.
India is rapidly emerging as a global leader in green ammonia production, a crucial element in the transition to a low-carbon economy.
According to Norton Rose Fulbright, export markets will be instrumental in scaling up the nation's green hydrogen and green ammonia production given the high cost for domestic consumption within India. Countries such as Japan, Singapore, and South Korea are anticipated to be major importers of these green fuels.
In terms of policies, the Indian government has expressed its support for green ammonia through its National Green Hydrogen Mission, which includes substantial funding and policy initiatives to promote their production and use. This aims to establish the state as a global hub, with a target of producing five million tonnes of green hydrogen annually by 2030.
India’s Strategic Interventions for Green Hydrogen Transition (SIGHT) programme is a crucial component of the national mission. This aims to identify and develop regions capable of supporting large-scale production and utilisation and provide financial support for the development of the necessary infrastructure for these hubs.
The government is also focusing on developing transmission infrastructure to provide power to Green Hydrogen Hubs. As per India’s National Electricity Plan on transmission, a transmission system is being planned to deliver power to green hydrogen/green ammonia manufacturing hubs in the states of Odisha, Gujarat, West Bengal, Andhra Pradesh, Tamil Nadu and Karnataka
Aside from regulation, private sector market drivers would also play a role in encouraging making green hydrogen more mainstream. An active carbon offsets market may also help in mitigating capital costs in relation to green hydrogen and green ammonia projects.