India's Green Hydrogen Push: Seeking Markets Abroad Amid Domestic Challenges
Key Ideas
- Indian green hydrogen and ammonia project developers are pursuing offtake contracts in Japan and South Korea due to domestic market limitations.
- The focus on international markets signifies a shift towards export-oriented strategies to ensure a steady market for green hydrogen products.
- Challenges include scaling production, lack of firm offtake agreements, and infrastructure and financing constraints, hindering large-scale project development in India.
- India's ambitious green hydrogen goals aim to decarbonize hard-to-electrify sectors and position the country as a global leader in renewable energy production.
Indian developers of green hydrogen and green ammonia projects are actively seeking offtake contracts in Japan and South Korea as the domestic market faces challenges. The move is crucial to provide a stable market for these products while the local sector struggles to grow. International offtake agreements are seen as pivotal for attracting investments in green hydrogen and ammonia projects in India. While the domestic market is not yet mature enough to support large-scale production, companies are turning towards international buyers. Challenges in scaling up production include difficulties in securing firm offtake agreements, transmission infrastructure issues, and limited institutional financing. Despite these obstacles, India remains optimistic about its future prospects in the green hydrogen sector. The country aims to reduce carbon emissions and establish itself as a global leader in renewable energy production by focusing on green hydrogen as part of its broader energy transition strategy.