India has the potential to become a competitive exporter of green hydrogen and green ammonia, supported by its abundant renewable energy resources, particularly solar power, according to Matthew Hodgkinson, Senior Analyst at S&P Global Energy. Hodgkinson said India has some of the lowest-cost renewable energy resources globally. This cost advantage could help Indian producers manufacture green hydrogen at competitive prices. Moreover, using renewable power to produce green hydrogen could enable India to monetise its abundant solar and other renewable energy resources while supporting the development of a low-carbon energy economy.
Overseas Buyers Show Interest in Indian Projects
India’s renewable energy cost advantage is already attracting interest from international buyers. Indian green hydrogen and ammonia projects have secured emerging offtake agreements with buyers in overseas markets. Furthermore, India has signed agreements with buyers in Europe and the Far East for hydrogen and ammonia. These agreements could support the development of international markets for green hydrogen and its derivatives.
Green Ammonia Could Reduce Domestic Imports
The opportunity extends beyond exports. Indian project developers have also entered into agreements to supply green ammonia to the domestic market. These projects aim to replace imports of grey ammonia with domestically produced green ammonia. Consequently, India’s relatively low renewable energy costs could provide an important advantage over major energy-importing markets such as Europe, Japan and South Korea.
International Partnerships to Support Green Hydrogen Growth
Hodgkinson also highlighted the importance of international partnerships in developing India’s green hydrogen industry. In particular, European buyers have shown interest in Indian projects producing green hydrogen and its derivatives. As reported by tribuneindia.com, as international demand develops, such partnerships and offtake agreements could help Indian producers establish export markets while supporting the broader growth of the country’s green hydrogen and ammonia ecosystem.
