Green Ammonia: A Promising Transport Carrier and Economic Opportunity for India

With increasing concerns about climate change and the need to reduce greenhouse gas emissions, the world is shifting towards renewable energy sources. Among these sources, green ammonia is emerging as a promising energy carrier that can help decarbonize the transportation sector, particularly in the shipping industry. India, with its ambitious renewable energy goals and large fertilizer industry, is well positioned to benefit from the growth of green ammonia production.

Green ammonia is produced using renewable energy sources, such as wind or solar power, to electrolyze water and separate hydrogen and oxygen. The hydrogen is then combined with nitrogen from the air to create ammonia. Unlike traditional ammonia, which is produced using fossil fuels, green ammonia is a carbon-free alternative that can be used in a variety of applications, such as fertilizer production, industrial feedstock, power generation, and most importantly, as a fuel for shipping.

The use of green ammonia as a transport carrier is gaining traction, especially in the shipping industry, where it can replace heavy fuel oil (HFO) and liquefied natural gas (LNG), both of which are major sources of greenhouse gas emissions. Ammonia has a high energy density, making it an attractive fuel for ships with long-distance travel requirements. Additionally, ammonia has a well-established supply chain and logistics network, including ports, storage facilities, and shipping routes, which makes it easier to scale up production and distribution.

The economics of green ammonia production in the Indian context are promising, given the country’s large renewable energy potential and established fertilizer industry. India is expected to add around 342 GW of renewable energy capacity by 2030, with solar accounting for 280 GW, which represents a capex opportunity of INR 11.2 trillion. To meet the anticipated 4 MT of green hydrogen demand, India would require around 21 GW of electrolyser capacity, powered by around 80 GW of renewable energy capacity. This would require around INR 20 trillion of funding over the next decade.

Indian companies are gearing up for green ammonia production, with several players making significant investments in the sector. Avaada Group recently signed a pact to invest $5 billion in a green ammonia project, which will involve the production of 2 million tons of green ammonia annually. Other companies, such as National Thermal Power Corporation (NTPC), Borosil Renewables, and Tata Power, are also expected to benefit from the growth of the green ammonia sector.

In summary, green ammonia is emerging as a promising transport carrier and economic opportunity for India, given the country’s large renewable energy potential and established fertilizer industry. The growth of green ammonia production can help India meet its ambitious renewable energy targets while reducing greenhouse gas emissions and creating new economic opportunities. Companies investing in green ammonia production in India are likely to benefit from the growing demand for this promising energy carrier.

Table: Indian Companies’ Efforts for Green Ammonia Production