Global Trends
The adoption of green ammonia has emerged as a cornerstone in global efforts to decarbonize the fertilizer and refinery sectors, both of which are high-emission industries central to national climate goals. In 2025, green ammonia is increasingly being prioritised not only as a clean fuel and hydrogen carrier, but also as a critical feedstock for sustainable agriculture and low-carbon refining. This shift is essential to meeting the Net Zero targets and updated climate commitments under the Paris Agreement and COP28 outcomes.
According to recent market projections, the global green ammonia market is now expected to exceed USD 210 billion by 2030, driven by expanding policy support, rising carbon pricing, and growing demand from maritime transport and clean fertilizer production. Fertilizer and energy majors are actively pursuing joint ventures to co-locate green ammonia production units near existing fertilizer and refinery clusters, aiming to reduce logistics costs and ensure cost competitiveness with grey ammonia.
In India, green ammonia has become a key priority under the National Green Hydrogen Mission, with production incentives and demand aggregation schemes being rolled out to support early adopters in the fertilizer sector. Several Indian public and private sector companies have announced pilot and commercial-scale green ammonia projects, especially in Gujarat, Odisha, Andhra Pradesh, and Tamil Nadu, leveraging coastal access for both domestic use and export.
Globally, the planned capacity for converting green hydrogen to green ammonia now exceeds 10 million tonnes per annum, according to the latest International Energy Agency (IEA) hydrogen project database. Leading fertilizer producers across regions are targeting 20% to 50% reductions in greenhouse gas (GHG) emissions by 2030, with some progressing towards fully fossil-free fertilizers. These decarbonisation efforts are increasingly backed by regulatory pressure, voluntary carbon markets, and green procurement policies.
The India Hydrogen Alliance (IH2A) is working with state governments and industry stakeholders to facilitate the development of green ammonia hubs, integrated with renewable energy infrastructure. By fostering public-private partnerships, technology co-development, and enabling policy frameworks, IH2A aims to accelerate the adoption of green ammonia across hard-to-abate sectors and position India as a key export hub for green molecules.
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IH2A Position
IH2A expects steel, refineries, and chemicals (fertilisers) industrial clusters to be hydrogen early adopters, as part of their decarbonisation plans, with potentially distributed models. Green Hydrogen demand aggregation of the top 10 state-owned refineries, fertilizer plants and chemical plants, alone should add up more than the 1.5 MT of domestic green hydrogen consumption (and production) estimated for 2030.
This requires some economic research and modelling, to arrive at the annual green hydrogen price subsidy and committed offtake from govt-owned enterprises. IH2A's view is that while govt-owned enterprises can act as anchor offtakers and provide an important demand aggregation signal to project developers and investors, private enterprises will complement government efforts and, in some cases, lead on H2 project development with higher ambitions on hydrogen transition in an effort to decarbonize their plants faster.
H2 transition in the fertilizer sector will be challenging in the short term as the sector is heavily subsidized already. The introduction of carbon pricing offers a pathway for quantitatively measuring carbon footprint and makes a better case for transition towards lower carbon technologies and systems. Currently, approx. 70% of grey ammonia that is used in the fertilizer sector is imported, leading to significant drain on India's foreign exchange reserves. Import substitution with domestically manufacturing green ammonia, from locally produced green hydrogen, will reduce India's import dependence in fertilizers, conserve foreign exchange, reduce carbon emissions in agriculture and build a net-zero pathway for the sector.
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Green Ammonia Use Case: Refineries and Fertilizers
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Green Ammonia Use Case: Refineries and Fertilizers