India’s ambitious green hydrogen and ammonia developers are setting their sights on markets in Japan and South Korea.
Despite India’s efforts to become a global leader in renewable energy, its domestic market for green hydrogen has not yet matured. This has led developers to seek international partnerships for offtake contracts.
Prashant Vasisht, senior vice-president at ICRA, pointed out that securing contracts with Japan and South Korea could lead to projects worth several thousand crores. He anticipates that by 2025, large developers hope to finalize these agreements, potentially triggering significant investments in the green hydrogen and ammonia sectors.
Sanjay Gupta, CEO of Apollo Green Energy, explained that the scale required for green hydrogen is beyond India’s current capabilities, necessitating a focus on exporting abroad. This need to seek international clients does increase India’s export bill. Ideally, such energy should be consumed domestically, similar to solar energy, but current circumstances demand a focus on global markets.
Gupta sees an opportunity in supplying to international markets, suggesting that competitive production costs can help India secure a place in the global market. As domestic conditions improve, the potential for cost-effective hydrogen solutions will increase.
Arjun Mehta, an advisor in the green hydrogen industry, highlights that full-scale projects are hindered by the lack of confirmed offtake deals. While government policies have eased some production costs, the development is slowed by challenges in transmission capacity, institutional financing, and supply chain logistics.
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