India Green Ammonia Market: Current Analysis and Forecast (2024-2032)

India Green Ammonia Market Size & Forecast

The India Green Ammonia Market was valued at USD 0.4 Million and is expected to grow at a robust CAGR of around 101.5% during the forecast period (2024-2032), owing to rising investment in renewable energy.

India Green Ammonia Market Analysis

India’s green ammonia market is currently in the nascent stages of development. In addition, there are no demand-side mandates to support its uptake. Catalyzing the development of the green ammonia market can help accelerate India’s decarbonization and enable it to achieve its energy independence goals. Therefore, demand for green ammonia would initially be driven by supportive government policies and technological adoption. In August 2021, India announced the National Hydrogen Mission, a key pillar of its government’s plan for India to achieve energy independence within 25 years. India spends USD 164 billion annually to meet its energy requirements, with the vast majority spent on oil, gas, and coal imports. Further, India is taking steps towards achieving its goal of net-zero carbon emissions by 2070 by emphasizing Green Hydrogen as a potential solution. The country recently announced its Green Hydrogen Policy, which is expected to boost the sector significantly.

India Green Ammonia Market Trends

This section discusses the key market trends influencing the various segments of India's Green Ammonia, as identified by our research experts.

Growing Consumption of Fertilizers

The global population is proliferating; therefore, there is a need to increase agricultural production to fulfill the food requirements of the growing population. The use of chemical fertilizers to enhance agricultural production has become a widespread practice across the globe. Furthermore, demand for organic and environmentally friendly fertilizers is also rising. Organic fertilizers are formulated with natural plant residues and waste, animal manures & excreta, micro-organisms, and botanical extracts to enhance agricultural production. Therefore, factors such as the growing need to increase farm output and awareness about the harmful effects of chemical inputs and the benefits of organic fertilizers augment the consumption of various environment-friendly fertilizers.

India Green Ammonia Industry Segmentation

This section provides an analysis of the key trends in each segment of the India green ammonia market report, along with forecasts at the regional levels for 2024-2032

The Alkaline Water Electrolysis Market Dominates the India Green Ammonia Market

Based on technology, the market is divided into alkaline water electrolysis, proton exchange membrane, and solid oxide electrolysis. Among these, the alkaline water electrolysis dominated the green ammonia and is expected to show the same trend in the forecast period. Alkaline water electrolysis is one of the most common types of technologies used to split water into the gases hydrogen and oxygen, which uses a potassium hydroxide (KOH) solution and a nickel cathode and has been the most widely adopted method for producing green ammonia due to its simplicity, maturity, and cost-effectiveness. The considerable supply of KOH and the established supplier network for this chemical decreased production prices and improved scalability. While other electrolysis techniques, which include proton exchange membrane (PEM) and solid oxide electrolysis (SOE), show promise, they face challenges regarding higher operating temperatures, corrosion resistance, and scaling troubles, which preclude their massive adoption. 

The Industrial Feedstock Market Dominates the India Green Ammonia Market

Based on end-users, the market is segmented into industrial feedstock, power generation, transportation, etc. Among these, the industrial feedstock segment dominated the market in 2023 and is expected to dominate during the forecast period. Industrial feedstock, typically derived from natural gas, provides a well-set supply chain and infrastructure, making it less complicated to scale up production and meet the high needs of various industries. Moreover, the central role of ammonia is as the primary feedstock for inorganic fertilizers that currently support food production for around half of the world’s population. Around 70% of ammonia is used to make fertilizers, with the remainder used for a wide range of industrial applications, such as plastics, explosives, and synthetic fibers. Secondly, the price of manufacturing green ammonia from industrial feedstock is typically lower compared to different renewable sources, including biomass or solar power, making it more economically feasible for mass production. 

North India is Expected to Grow with a Significant CAGR During the Forecast Period

The North India Green Ammonia market is developing at a fast pace due to rising clean energy government support as well as increasing demand for sustainable fertilizers and developing hydrogen infrastructure in the region. The states of Punjab and Haryana, together with Uttar Pradesh, have established themselves as major centers because these regions combine strong agricultural foundations with active programs to reduce their carbon footprint. The expansion of the North Indian renewable-powered ammonia market occurs through investments in renewable energy-based ammonia manufacturing and partnerships between energy companies and government policy leaders. The North Indian region stands to become essential in India’s movement toward a low-carbon economy following the National Green Hydrogen Mission’s advocacy for green ammonia as an energy transport medium.

India Green Ammonia Industry Overview

India Green Ammonia is competitive and fragmented, with several players. The key players are adopting different growth strategies to enhance their market presence, such as partnerships, agreements, collaborations, new product launches, geographical expansions, and mergers and acquisitions. Some of the major players operating in the market are Siemens, ThyssenKrupp, Nel Hydrogen, Indian Oil Corporation Ltd, MAN Energy Solutions, Uniper, BASF, Enapter, ENGIE, Adani Group, BASF, Enaex SA, and JGC Holding Corporation.

India Green Ammonia Market News

• March 2024: An Indian state approves more than $2bn in investment in two new green hydrogen-based ammonia plants. Odisha in eastern India has approved two investment proposals worth 188.1 billion rupees ($2.27bn).
• January 2024: India's ACME and Japanese heavy industry group IHI have signed an offtake term sheet to supply green ammonia from Odisha, India, to Japan. The agreement is for the long-term supply of 400,000 mt/year of renewables-derived ammonia from Phase 1 of the Odisha project in Gopalpur, India's Ministry of New and Renewable Energy said in a statement.

India Green Ammonia Market Report Coverage

Reasons to buy India Green Ammonia Market report:

• The study includes market sizing and forecasting analysis validated by authenticated vital industry experts.
• The report briefly reviews overall industry performance at a glance.
• The report covers an in-depth analysis of prominent industry peers, primarily focusing on key business financials, product portfolios, expansion strategies, and recent developments.
• Detailed examination of drivers, restraints, key trends, and opportunities prevailing in the industry.
• The study comprehensively covers the market across different segments.
• Deep dive regional-level analysis of the industry.

Customization Options:

The India Green Ammonia Market can be customized per the requirement or any other market segment. Besides this, UMI understands that you may have your own business needs; hence, feel free to connect with us to get a report that completely suits your requirements.