Can Green Ammonia Save India's Subsidies? - India Renewable Energy Consulting – Solar, Biomass, Wind, Cleantech
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Can Green Ammonia Save India’s Subsidies?

Here’s what Saur Energy has to say regarding:

  • Green ammonia is produced using renewable energy sources, such as wind or solar power, and has a significantly lower carbon footprint compared to traditional ammonia.
  • Green ammonia has gained attention as a potential energy storage medium, converting excess renewable energy into green ammonia through the electrolysis process
  • Green ammonia is still in the early stages of development, but ongoing initiatives and research indicate that it has the potential to achieve widespread implementation

Green ammonia holds significant potential to transform India’s energy landscape, potentially alleviating the burden of subsidies while fostering sustainable development. Here’s how:

Top management consulting experts for Bio-energy, EV, Solar, Green Hydrogen

  1. Energy Security and Import Dependency Reduction: India heavily relies on imported fossil fuels, which strains its economy and exacerbates trade deficits. Green ammonia, produced from renewable sources like wind and solar power, offers a domestic alternative. According to a report by The Energy and Resources Institute (TERI), India’s dependency on fossil fuel imports could decrease by 10-15% by 2030 through the adoption of green hydrogen and derivatives like ammonia.
  2. Subsidy Rationalization: India spends billions of dollars annually on fuel subsidies to keep energy prices affordable for its citizens. However, these subsidies strain the government’s finances and can be unsustainable in the long run. By transitioning to green ammonia as a clean energy carrier, India can reduce its reliance on fossil fuel subsidies. The savings from subsidy rationalization can be redirected towards renewable energy infrastructure and research, further driving the transition to a sustainable energy future.
  3. Environmental Benefits: Traditional ammonia production relies on fossil fuels and is a significant contributor to greenhouse gas emissions. In contrast, green ammonia production emits zero or negligible carbon emissions when generated from renewable sources. By scaling up green ammonia production, India can significantly reduce its carbon footprint and meet its climate commitments under the Paris Agreement.
  4. Industrial Applications: Ammonia is a crucial feedstock for various industries, including fertilizers, chemicals, and pharmaceuticals. Green ammonia can replace conventional ammonia in these applications, offering a sustainable alternative while reducing dependency on fossil fuels. According to estimates by McKinsey, green ammonia could meet up to 30% of global ammonia demand by 2050, presenting a significant market opportunity for India’s burgeoning renewable energy sector.
  5. Investment and Job Creation: Transitioning to green ammonia production requires substantial investments in renewable energy infrastructure, electrolysis facilities, and ammonia synthesis plants. These investments can stimulate economic growth and create employment opportunities across the value chain, from manufacturing and construction to operations and maintenance. For instance, a study by the International Renewable Energy Agency (IRENA) suggests that green hydrogen production could create around 4.5 million jobs globally by 2050.

Interestingly, we have some other posts related to this content:

“Green Ammonia Deal By Uniper with Greenko’s Kakinada Facility, India” – Uniper, a German utility company, has signed a deal with Greenko Group to source green ammonia from India. “Green Ammonia Power: Real-World Projects” – This article discusses the potential of green ammonia as a renewable fuel produced using wind or solar power. “Clean Ammonia Supply: CF Industries and JERA Team Up” – CF Industries and JERA have signed an MOU for clean ammonia supply, with up to 500,000 metric tonnes per year. “Massive Green Ammonia Guide – H2Carrier’s P2XFloater” – H2Carrier is developing a floating green ammonia production and storage facility called the P2XFloater. 

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About Narasimhan Santhanam (Narsi)

Narsi, a Director at EAI, Co-founded one of India's first climate tech consulting firm in 2008.

Since then, he has assisted over 250 Indian and International firms, across many climate tech domain Solar, Bio-energy, Green hydrogen, E-Mobility, Green Chemicals.

Narsi works closely with senior and top management corporates and helps then devise strategy and go-to-market plans to benefit from the fast growing Indian Climate tech market.


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