India Positioned to Lead Global Green Ammonia Market with Cost-Effective Renewable Energy

India is poised to become the lowest-cost green ammonia producer due to its competitive solar and wind energy prices. With significant government incentives and industry investments, India aims to decrease production costs and establish itself as a key player in the global renewable energy landscape by 2030.

India is emerging as a game-changer in the global energy market with its potential to become the lowest-cost green ammonia producer. A report by Nuvama highlights India's lower costs in solar photovoltaic (PV) and wind energy, which are significantly cheaper compared to global averages. This cost advantage, coupled with potential reductions in India's finance costs, positions the country as a formidable player in the green ammonia market.

According to NITI Aayog, by 2030, India's green ammonia production costs could be approximately 29 per cent lower than China's and 43 per cent lower than Australia's. Major Indian firms like Reliance Industries (RIL) are preparing to play a crucial role in this new energy trajectory. RIL plans to commission its first train of solar PV manufacturing by the end of FY25, scaling up to 20GW by CY26.

RIL has also secured Production Linked Incentives (PLIs) for both solar modules and green hydrogen production, worth USD 0.7 billion. These incentives aim to cover 18 per cent of the green hydrogen value chain, benefiting RIL in India's green energy policies. The Indian government is committed to promoting domestic solar module manufacturing through its Solar PV Modules PLI-Tranche II, allocating Rs 140 billion for 39.6 GW of capacity. This initiative is set to add significant solar module manufacturing capacity in the next three years.

(With inputs from agencies.)