The shipping industry is expected to drive the largest demand for green ammonia and green methanol, both derivatives of green hydrogen, in the coming years, Avaada Group chairperson Vineet Mittal said.
The implementation of the Carbon Border Adjustment Mechanism in the European Union is expected to bring a surge in the green hydrogen derivatives offtake agreements, Mittal said.
Offtake agreements so far among countries looking to trade in the molecules have seen tepid response because of higher cost compared with blue hydrogen and other regulatory hurdles.
“While green hydrogen currently faces global offtake challenges, we remain very optimistic about its future,” he said.
India launched its National Green Hydrogen Mission in 2023 with a major focus on exports and has since been in dialogue with countries like Japan, South Korea and the EU for facilitating purchase agreements with Indian companies.
“In the green molecule space, I believe India will emerge as a global leader, and as a company, we are fully focused on capitalizing on this opportunity,” Mittal said.
Avaada Group submitted its commitment to develop 30 GW of renewable energy and 10 GW of solar module and cell manufacturing capacity to the government last week at the RE-Invest summit in Gandhinagar where companies and states pledged their contributions till FY30.