India green hydrogen and ammonia industry development

India is positioning itself as a competitive global exporter of green hydrogen and ammonia, leveraging abundant, low-cost renewable energy resources like solar power. S&P Global Energy analyst Matthew Hodgkinson noted that India’s cost advantages are already attracting interest from overseas buyers, with agreements signed with European and Far Eastern markets.

The state of Gujarat has emerged as a central hub, benefiting from hosting approximately 40 percent of India’s refinery capacity, 30 percent of its ammonia capacity, and nearly 50 gigawatts of combined solar and wind capacity. To facilitate this transition, Gujarat finalized a hydrogen strategy in December 2025, which includes financial incentives and capital subsidies for early-stage electrolyzer projects.

A major development involves AM Green Ammonia (India) Private Limited converting an existing natural gas-powered ammonia and urea plant in Kakinada into a renewable energy-powered facility. This project aims to produce approximately 1.1 million tonnes of green ammonia annually and has secured an offtake arrangement with Uniper. Everllence has secured its first commercial order for the project, supplying a PARSYN compressor package designed for variable renewable loads, with commissioning scheduled for 2028.

This industrial shift is supported by international financing, including a US$100 million loan from the Leading Asia’s Private Infrastructure Fund 2, financed by the Japan International Cooperation Agency and administered by the Asian Development Bank. This marks the first investment under the Action for Creating Energy Security for Long-term Resilience (ACCEL) program, aligning with India’s National Green Hydrogen Mission.