India aims for global ammonia market dominance with sustainable energy leadership.

By Oliver Townsend May 26, 2024
India sets sights on global renewable ammonia market, takes strides towards sustainable energy leadership.jpegOrginal image from: https://economictimes.indiatimes.com/industry/renewables/india-sets-sights-on-global-renewable-ammonia-market-takes-strides-towards-sustainable-energy-leadership/articleshow/110440470.cms

India is setting its sights on the global renewable ammonia market, marking a significant step towards sustainable energy leadership. With several international trade agreements already in place and more on the horizon, the country is positioning itself as a key player in this growing market. However, industry insiders stress the importance of greater policy clarity and price stability to solidify these agreements.

India’s Ambition in the Renewable Ammonia Market

India aims to produce 5 million metric tons of renewable hydrogen by 2030 and secure a 10% share of the global trade, highlighting its commitment to renewable energy. Leading entities like ACME-IHI and ReNew-Jera have already entered non-binding supply agreements for renewable ammonia, with more expected to follow. These agreements serve as vital stepping stones for securing financing and finalizing contracts.

Challenges and Opportunities

While India boasts a significant number of renewable hydrogen projects, finding a market for its renewable ammonia poses a challenge. Traditional markets like Japan and South Korea, which rely on low-carbon ammonia, present stiff competition. However, India’s cost advantages and initiatives like the National Green Hydrogen Mission 2023 position it well in the global market.

Driving Factors for India’s Renewable Ammonia

The National Green Hydrogen Mission 2023 plays a crucial role in driving down production costs by waiving interstate transmission charges for renewable energy and offering subsidies. India also benefits from a transport cost advantage over the Middle East, further enhancing its competitiveness. Industry leaders express confidence in India’s ability to meet stringent European requirements for renewable fuels at a fraction of the cost incurred elsewhere.

Industry Insights and Future Outlook

Industry experts like Mahesh Kolli highlight India’s potential to produce renewable hydrogen at significantly lower costs compared to other markets. Despite challenges, India’s renewable ammonia is expected to remain competitive globally. With strategic initiatives and growing investments in renewable energy, India is poised to make a significant impact on the sustainable energy landscape.

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