According to industry experts, India’s ambitious green hydrogen and green ammonia projects are looking to establish international partnerships as the domestic market struggles to gain traction, reported ETEnergyWorld.
Prashant Vasisht, senior vice president at ICRA, emphasised the potential for significant investments if international agreements come through. “If firm contracts with buyers in countries like Japan and South Korea are signed, we could see projects worth several thousand crores being developed,” he noted.
Sanjay Gupta, CEO of Apollo Green Energy, pointed out that the domestic market is not yet ready to support large-scale green hydrogen production. “Companies are being forced to look abroad for buyers, which increases the export burden. Ideally, we’d like to see this energy utilised within India, similar to the solar energy sector. But until that happens, international markets are the only option,” he said.
Gupta added that exporting green hydrogen could still be a positive move, allowing India to compete globally. “If India manages to secure a foothold in the international market, it will position the country as a key player. The challenge is to make production costs competitive so that when the domestic market matures, we already have a cost-effective solution in place.”
Arjun Mehta, an expert in the green hydrogen sector and advisor to GH2 India, highlighted the difficulties in scaling up production. “The lack of large-scale offtake agreements and reliance on early-stage discussions or small deals have slowed progress. While government policies have offered some relief, challenges like transmission infrastructure, financing, and supply chain issues continue to hinder growth,” he said.
Green hydrogen, produced from renewable energy sources such as wind and solar power, is considered a must for reducing emissions in heavy transport, steel, and chemicals. India has set ambitious targets for the development of green hydrogen, which will help the country become a global leader in renewable energy in its fight against climate change.
