India is poised to cater to the top green ammonia importers in the coming years, according to Nuvama Research. The country will become highly competitive in the green ammonia export market due to the advantage of estimated low production cost, it said.
What Is Green Ammonia?
Green ammonia is a form of ammonia produced using 100% renewable energy sources, unlike traditional ammonia, which is produced by heavily relying on fossil fuels.
Green ammonia serves as an efficient clean energy carrier, storing and transporting renewable energy. It also offers a potential solution to reduce carbon emissions across industries and has various applications as a fuel, fertiliser, and hydrogen carrier.
India And Green Ammonia
India is one of the six key green ammonia exporting countries, according to the Council on Energy, Environment and Water. Other exporting countries listed by the council include Chile, Australia, Oman, Saudi Arabia and China.
Conversely, Germany and Japan are poised to become the top importers of low-cost green ammonia.
NITI Aayog estimates that India’s green ammonia production costs by 2030 will be 29% and 43% lower than those of China and Australia, respectively.
The country is likely to maintain its cost advantage, with green ammonia being 17% and 21% competitive versus China and Australia by 2050, respectively, said Nuvama Research.
The lower solar PV and wind energy costs makes India very competitive, positioning it amongst global low-cost countries, the research firm said. This will further enhance the country’s competitiveness as a leading green ammonia exporter, it said.