Binding overseas offtake agreements are giving Indian green-ammonia and green-methanol projects stronger revenue visibility, while Japan and Europe emerge as early markets
India’s green hydrogen economy is entering a more commercial phase as domestic producers secure binding overseas offtake agreements, signalling that global buyers are beginning to commit to Indian green molecules rather than merely explore future supply. The emerging contracts span green ammonia and methanol and could cover up to 1.2 million tonnes a year of green or renewable ammonia and around 100,000 tonnes a year of green methanol, according to publicly announced deals.
The development is significant for an industry where high capital costs, uncertain demand and the price gap with conventional fuels have remained major barriers to investment. Long-term contracts can improve project bankability by giving developers predictable demand and lenders greater visibility over future cash flows.
Contracts Strengthen Export Economics
Europe and Japan are emerging as the first major overseas markets for Indian producers. AM Green has secured a 10-year purchase agreement through Germany’s H2Global mechanism. Supplies from its Kakinada project in Andhra Pradesh are expected to begin in 2029. The company had earlier signed an agreement with Germany’s Uniper for up to 500,000 tonnes a year of renewable ammonia, with initial supplies expected from 2028.
Meanwhile, ACME Group has secured Japanese offtake for 405,000 tonnes a year of green ammonia and around 100,000 tonnes a year of green methanol through separate agreements. L&T Energy GreenTech has also signed a long-term take-or-pay agreement with Japan’s ITOCHU Corporation for 300,000 tonnes a year of green ammonia from its proposed Kandla facility in Gujarat. The company is now exploring the location as a wider export hub for green hydrogen derivatives.
India Targets Global Supply Chains
The contracts are also changing the economic proposition for Indian green hydrogen. Industry experts say firm international demand can help developers move from demonstration projects towards final investment decisions, while strategic overseas buyers can provide both market access and potential capital partnerships. This comes as production economics improve. India’s green hydrogen production cost has fallen from around USD 5 per kg in 2023 to about USD 3 per kg in 2026, according to recent industry estimates, although the cost gap with conventional hydrogen and competing exporters remains a challenge.
The government’s National Green Hydrogen Mission, with an outlay of Rs 19,744 crore, aims to establish India as a global hub for the production, use and export of green hydrogen and its derivatives. For India, the emerging export order book could create a new industrial value chain spanning renewable power, electrolysers, ammonia and methanol production, ports and shipping. The next test will be execution: converting signed contracts into operating plants, competitive delivered prices and regular export cargoes.
