India signs world's largest green hydrogen offtake commitments: MNRE

Twenty-three contracts covering over 550,000 tonnes per annum of green hydrogen equivalent have been signed since 2023, with more than 70 per cent earmarked for exports

Indian companies have so far signed what the government described as the world’s largest green hydrogen offtake commitments, totalling more than 550,000 tonnes per annum (TPA) of green hydrogen equivalent, positioning the country as a global leader in the segment, the Ministry of New and Renewable Energy (MNRE) said on Thursday.

 

“Since the launch of the National Green Hydrogen Mission (NGHM) in 2023, altogether 23 offtake contracts covering about 5.5 lakh MTPA of Green Hydrogen equivalent have been signed, out of which over 70 percent are earmarked for exports,” the ministry said.

 

It added that in the current calendar year alone, Indian companies have signed 18 new offtake agreements for the supply of more than 400,000 TPA of green hydrogen equivalent.

  

Indian companies have forged strategic partnerships and binding green hydrogen offtake agreements across major global markets, the ministry said.

 

These green hydrogen projects are expected to attract total investments of around Rs 90,000 crore, or $9.5 billion, as Indian suppliers offer competitive prices for green ammonia and green methanol, strengthening the country’s position in European and Japanese markets, MNRE said.

 

Green hydrogen derivatives are increasingly being adopted in fertiliser production and refining to enable industrial decarbonisation.

 

Green ammonia is also emerging as a cleaner bunkering fuel for the global shipping industry and is being deployed for ammonia co-firing in thermal power plants to reduce carbon emissions.

 

The National Green Hydrogen Mission was approved by the Union Cabinet in 2023 with an initial outlay of Rs 19,744 crore up to 2029-30.

 

The mission targets production of at least 5 million metric tonnes per annum (MMTPA) of green hydrogen by 2030.

 

Its expected outcomes also include the addition of 125 GW of renewable energy capacity, more than Rs 8 lakh crore in total investment, creation of over 600,000 full-time jobs and avoidance of 50 million tonnes of carbon emissions annually.

 

ACME Group has signed an offtake agreement with Japan’s IHI for the supply of 488,000 TPA of green ammonia.

 

The company has also signed an agreement to supply 100,000 TPA of green methanol to Mitsubishi Gas Chemical (MGC) of Japan.

 

Reliance Industries (RIL) has entered into a long-term supply and purchase agreement with South Korea’s Samsung C&T Corporation valued at more than $3 billion, making it one of the largest green ammonia offtake contracts globally.

 

Deliveries under the agreement are expected to begin by 2028.

 

L&T and ITOCHU have formed a special purpose vehicle (SPV) for the supply of 300,000 TPA of green ammonia, with deliveries expected to start from December 2029.

 

Agastya is in the process of arranging offtake for the supply of 250,000 TPA of green methanol to SAR of Sri Lanka.

 

AM Green has been selected as the sole winner of the Asian lot in the H2Global auction run by HINT.CO GmbH, securing a long-term purchase agreement for the supply of Renewable Fuels of Non-Biological Origin (RFNBO) ammonia to Germany.

 

Under the agreement, HINT.CO will purchase ammonia from AM Green for a minimum value of €585 million over 10 years, with first deliveries to Germany expected in 2029.

 

AM Green has also signed a firm offtake agreement with Germany’s Uniper for the supply of 250,000 TPA of green ammonia.

 

Under the Strategic Interventions for Green Hydrogen Transition (SIGHT) programme of the NGHM, agreements have been signed for the production and supply of 670,000 TPA of green ammonia to 11 fertiliser units across the country.

 

Projects have also been awarded under the programme for the production and supply of 30,000 TPA of green hydrogen to refineries operated by Indian Oil Corporation, Bharat Petroleum Corporation, Hindustan Petroleum Corporation and Numaligarh Refinery.