This post is a part of Climate G2I Intelligence series from Energy Alternatives India (EAI), India’s leading climate-tech consulting firm.
G2I stands for Gateway 2 India, and provides comprehensive market intelligence and go-to market assistance for International firms entering the Indian climate-tech market. More about Climate G2I from here
Petronas, a prominent Malaysian oil and gas giant, is making a significant $1.6 billion investment in a green ammonia project in India. This venture, undertaken in collaboration with Gentari (the renewable energy arm of Petronas) and Greenko (a leading Indian sustainable energy firm), underscores the growing momentum behind green energy initiatives in India. This investment notably positions the project as one of the top capital raises in India in 2023, signaling an emerging trend likely to spur further investment in this sector.
The Indian green hydrogen and ammonia sector is rapidly developing thanks to concerted governmental efforts. With favorable policies like the National Green Hydrogen Mission, India is attracting considerable investment. This mission provides financial incentives, tax breaks, land allocation, and streamlined regulatory procedures, creating a thriving environment for green ammonia production. Additionally, India’s commitment to reducing carbon emissions and fulfilling its ambition to be net-zero by 2070 offers ample growth potential for the green ammonia market.
The Petronas project itself highlights the growing potential for partnerships and alliances in India’s green ammonia industry. The involvement of GIC, Singapore’s sovereign wealth fund, demonstrates the appeal this sector holds for global financial institutions. Industry forecasts point to remarkable growth, with some market analysts predicting impressive CAGR increases of over 70% for the Indian green ammonia market in the coming years.
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Of course, there are challenges to navigate in this dynamic space. Green ammonia production costs remain high compared to conventional production methods, creating a hurdle for broader adoption. Developing robust infrastructure dedicated to storage and transport is another pressing need. The Indian government recognizes these needs and is actively supporting technological breakthroughs, infrastructural development, and the upskilling of the workforce. As the regulatory framework evolves and safety standards solidify, confidence in the sector will grow further. Strategic policies and a strong desire to decarbonize are proving to be key drivers for the expanding Indian green ammonia market.
With India’s determination to boost indigenization in the sector, opportunities abound for collaborations with international firms specializing in cutting-edge technology. India seeks domestic manufacturing of essential equipment like electrolyzers and is determined to develop its own indigenous solutions. Through a combination of external partnerships and focused internal research, India’s green hydrogen and ammonia sector is poised to transform India’s energy landscape and establish the nation as a global leader in sustainable solutions.
More details about Petronas and their projects in Green Hydrogen:
Petronas is actively expanding its green hydrogen and green ammonia projects as part of its commitment to sustainable energy development and decarbonization efforts.
- H2biscus Project, Malaysia: This is a notable green hydrogen and ammonia initiative located in Bintulu, Sarawak, developed by a consortium including Samsung Engineering, POSCO, and Lotte Chemical, in collaboration with the Sarawak Economic Development Corporation (SEDC). The project aims to produce 7,000 tonnes per year of green hydrogen for the domestic market and substantial quantities of blue and green ammonia (600,000 and 630,000 tonnes per year, respectively) primarily for export to Korea. This initiative also includes the production of 460,000 tonnes per year of green methanol (Ammonia Energy Association).
- PEM Electrolyser Development: In collaboration with Universiti Kebangsaan Malaysia (UKM), Petronas has developed Southeast Asia’s first commercial-scale Proton Exchange Membrane (PEM) electrolyser. This technology is noteworthy for its 20% increase in efficiency compared to existing PEM technologies, leading to more cost-effective production of green hydrogen (Green Hydrogen News).
- International Collaboration for Green Ammonia Production: Petronas, through its subsidiary Gentari, has entered into a partnership with AM Green and the Singaporean investment entity GIC to establish AM Green Ammonia Holdings BV. This venture is projected to produce 5 million tonnes per annum of green ammonia by 2030, using renewable energy sources. The green ammonia produced will help meet significant portions of India’s and Europe’s renewable hydrogen targets, with exports aimed at key markets like Germany, Japan, South Korea, and Singapore (BusinessToday).
These projects are part of a broader strategy by Petronas to lead in the low-carbon energy sector, leveraging Malaysia’s potential as a hub for green hydrogen production, supported by abundant hydropower and existing infrastructure (Green Hydrogen News) (Energy Connects). These initiatives underscore Petronas’s commitment to enhancing green energy production capabilities, contributing to global efforts toward carbon neutrality and the development of a sustainable hydrogen economy.
This post is a part of Climate G2I Intelligence series from Energy Alternatives India (EAI), India’s leading climate-tech consulting firm.
G2I stands for Gateway 2 India, and provides comprehensive market intelligence and go-to market assistance for International firms entering the Indian climate-tech market. More about Climate G2I from here
