India has secured agreements to sell 5.55 lakh metric tonnes of green hydrogen and its related products every year to domestic and international buyers, with the commitments expected to attract investments of more than Rs 90,000 crore.
The agreements mark a major step towards achieving the country’s goal of producing 5 million metric tonnes (50 lakh tonnes) of green hydrogen annually by 2030 under the National Green Hydrogen Mission.
Union Minister Pralhad Joshi said Indian developers had secured 23 major contracts under the government’s green hydrogen initiative. More than 70 per cent of the commitments are dedicated to export markets, underlining the growing international demand for Indian green fuels and the sector’s potential to generate investment and employment.
The government sees green hydrogen as a key component of India’s clean energy transition, with applications in emissions-intensive sectors such as fertilisers, refining, chemicals and heavy industry.
Approved by the Union Cabinet with an initial outlay of Rs 19,744 crore through the financial year 2029–30, the National Green Hydrogen Mission aims to establish India as a global hub for the production, use and export of green hydrogen and its derivatives.
The mission targets annual production of at least 5 million metric tonnes of green hydrogen by 2030. Its broader objectives include adding 125 GW of renewable energy capacity, attracting investments of more than Rs 8 lakh crore, generating over six lakh full-time jobs and avoiding approximately 50 million metric tonnes of carbon dioxide emissions annually.
The latest offtake commitments amount to 11 per cent of the mission’s 2030 production target. However, translating these commitments into actual production and deliveries will depend on project execution, financing and the development of supporting infrastructure.
Indian companies are increasingly entering into long-term supply agreements with overseas buyers for green ammonia and green methanol, two important hydrogen derivatives used in industrial applications and as potential lower-carbon fuels.
ACME Group has signed an agreement with Japan’s IHI for the supply of 4.88 lakh metric tonnes per annum (MTPA) of green ammonia. The company has also entered into an agreement to supply 1 lakh MTPA of green methanol to Japan’s Mitsubishi Gas Chemical.
Larsen & Toubro (L&T) and Japan’s ITOCHU have formed a special purpose vehicle for the supply of 3 lakh tonnes of green ammonia annually, with deliveries expected to begin in December 2029.
Reliance Industries Limited (RIL) has entered into a long-term green ammonia supply and purchase agreement with South Korea’s Samsung C&T Corporation. Valued at more than USD 3 billion, the agreement is expected to see deliveries begin by 2028.
Meanwhile, Agastya is pursuing an offtake arrangement to supply 2.5 lakh MTPA of green methanol to Sri Lanka’s SAR, reflecting the expanding regional market for Indian green fuel producers.
Indian developers are also seeking to strengthen their presence in European and Japanese markets through long-term supply agreements.
AM Green was selected as the sole winner of the Asian lot in the H2Global auction conducted by HINT.CO GmbH. It secured a long-term purchase agreement for renewable fuels of non-biological origin (RFNBO) ammonia destined for Germany. The agreement provides for purchases worth at least €585 million over 10 years, with the first deliveries expected in 2029.
These agreements are expected to provide producers greater visibility on future demand and help establish India as a supplier of low-carbon fuels to international markets.
Alongside exports, the government is working to develop a domestic market for green hydrogen and its derivatives through targeted policy support.
Under the Strategic Interventions for Green Hydrogen Transition (SIGHT) Programme, agreements have been signed for the production and supply of 6.7 lakh MTPA of green ammonia to 11 fertiliser units across the country. The initiative aims to encourage the replacement of conventional, fossil-fuel-intensive processes with cleaner alternatives.
Demand from fertiliser plants and refineries could help strengthen the domestic market and support the wider adoption of cleaner industrial processes.
