The global green ammonia market is moving from early-stage pilot projects toward long-term commercial contracting, with Reliance Industries Limited (RIL) signing a 15 year supply and purchase agreement (SPA) with Samsung C&T Corporation valued at approximately $3 billion.
The agreement, which begins deliveries in the second half of 2029, positions India as a potential exporter of renewable hydrogen derivatives to industrial markets in East Asia.
The contract represents one of the larger long-term green ammonia offtake agreements announced to date and reflects a growing trend in the hydrogen sector: buyers are seeking supply certainty before committing to large-scale decarbonization strategies. For producers, securing bankable offtake agreements has become a critical step in financing projects that require significant upfront investment in renewable power generation, electrolysis capacity and downstream infrastructure.
Under the agreement, Reliance will produce green ammonia in India, while Samsung C&T will serve as the primary buyer and international distributor. The fuel is expected to be supplied to markets including South Korea and Japan, where industrial companies and utilities are under increasing pressure to reduce emissions from sectors that are difficult to electrify.
Green ammonia has gained attention because it can function as a hydrogen carrier and can also be used directly in applications such as maritime fuel, power generation and industrial processes. However, its competitiveness depends on several factors, including renewable electricity costs, electrolyzer efficiency, transportation expenses and regulatory definitions of low carbon hydrogen.
The long-term nature of the contract provides greater certainty for both sides. Offtake agreements of this scale are increasingly viewed as necessary to bridge the gap between announced hydrogen ambitions and actual project financing.
Jamnagar Complex Forms the Core of Reliance’s Hydrogen Strategy
Reliance’s ability to meet the agreement depends heavily on its planned green energy manufacturing ecosystem in Jamnagar, Gujarat.
The company is developing the Dhirubhai Ambani Green Energy Giga Complex, a large industrial site designed to integrate renewable energy equipment manufacturing, battery production and electrolyzer manufacturing.
The strategy differs from models where developers rely primarily on external suppliers for key components. Reliance is aiming to establish domestic production capabilities across multiple parts of the clean energy value chain, including solar modules, energy storage systems and hydrogen production equipment.
The company is also developing renewable generation capacity in Kutch, Gujarat, combining solar and wind resources to supply electricity for hydrogen production. That power would be used in electrolyzers to split water into hydrogen and oxygen, with hydrogen subsequently combined with nitrogen to produce ammonia.
The integrated approach is intended to reduce exposure to equipment supply constraints and imported technology costs, although executing such a vertically integrated model at scale remains a significant industrial challenge.
While the Samsung agreement provides commercial visibility, the economics of green ammonia production continue to depend on falling renewable power costs and improvements in electrolyzer performance.
Hydrogen production through electrolysis remains more expensive than conventional hydrogen derived from fossil fuels without carbon capture. The gap is narrowing in regions with strong renewable resources, but project competitiveness varies significantly depending on electricity availability and infrastructure conditions.
Export-oriented projects face additional complexity because ammonia must be transported internationally. Shipping, storage and terminal infrastructure add costs that can influence whether green ammonia can compete with alternative decarbonization pathways.
For markets such as South Korea and Japan, however, imported clean fuels may become necessary due to limited domestic renewable resources and high energy demand.
Reliance has outlined a phased development timeline leading toward the 2029 export commitment.
The company expects its solar manufacturing operations to begin generating commercial revenue in 2026. Its battery cell manufacturing plans include an initial 40 GWh capacity phase, with ambitions to expand toward 120 GWh annually in later stages.
The hydrogen and downstream chemical facilities are expected to reach larger-scale operation before deliveries to Samsung begin.
