India Aims For Key Role In Global Renewable Ammonia Market

ENA Global 2024-05-27 13:24:21 New Delhi, May 27 (KNN) India is positioning itself as a major player in the rapidly growing renewable ammonia industry, inking several international trade agreements with more potentially on the horizon, according to industry analysts. The nation has set ambitious targets to produce 5 million metric tons of renewable hydrogen by 2030 and capture 10 per cent of the global market share, underscoring its commitment to clean energy sources. Leading Indian companies like ACME-IHI and ReNew-Jera have already entered into non-binding supply agreements for renewable ammonia. Analysts at S&P Global Commodity Insights predict more such preliminary pacts will follow, providing guideposts as firms secure financing and finalise construction contracts in this industry's critical early commercial phase. While India boasts nearly 100 planned renewable and low-carbon hydrogen projects with a combined 7.85 million metric ton capacity, finding markets for its renewable ammonia output remains a challenge. Traditional suppliers of ammonia derived from fossil fuels with carbon capture, particularly in Japan and South Korea, offer stiff competition. Debates around subsidies favoring low-carbon over green ammonia further complicate the landscape. However, India is expected to maintain a global cost advantage due to cheap renewable power, government incentives like subsidies and low-cost loans, and its proximity to major North Asian markets. The National Green Hydrogen Mission 2023, exempting interstate renewable energy transmission fees and offering subsidies, aims to drive down production costs. To meet European standards, the renewable hydrogen cost in most countries is around USD 8-USD 10 per kg, said Mahesh Kolli, President of leading Indian renewable firm Greenko. In India, we can achieve this at USD 3-USD 4 per kg even without subsidies, he added. While supportive policies have accelerated large-scale renewable ammonia projects for potential exports by 2027, some developers voice concerns about policy consistency amid India's growing domestic energy demands. Greater regulatory clarity and price stability will be crucial to transforming non-binding pacts into firm offtake agreements, according to industry insiders cited by S&P Global. (KNN Bureau) 37952 https://knnindia.co.in/news/newsdetails/global/india-aims-for-key-role-in-global-renewable-ammonia-market 2024-05-27 13:24:21 knnindia.co.in India Aims For Key Role In Global Renewable Ammonia Market