Petronas Leads $1.6 Billion Investment in India's Green Ammonia.
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This post is a part of Climate G2I Intelligence series from Energy Alternatives India (EAI), India’s leading climate-tech consulting firm.

G2I stands for Gateway 2 India, and provides comprehensive market intelligence and go-to market assistance for International firms entering the Indian climate-tech market. More about Climate G2I from here


Petronas, a prominent Malaysian oil and gas giant, is making a significant $1.6 billion investment in a green ammonia project in India. This venture, undertaken in collaboration with Gentari (the renewable energy arm of Petronas) and Greenko (a leading Indian sustainable energy firm), underscores the growing momentum behind green energy initiatives in India. This investment notably positions the project as one of the top capital raises in India in 2023, signaling an emerging trend likely to spur further investment in this sector.

The Indian green hydrogen and ammonia sector is rapidly developing thanks to concerted governmental efforts. With favorable policies like the National Green Hydrogen Mission, India is attracting considerable investment. This mission provides financial incentives, tax breaks, land allocation, and streamlined regulatory procedures, creating a thriving environment for green ammonia production. Additionally, India’s commitment to reducing carbon emissions and fulfilling its ambition to be net-zero by 2070 offers ample growth potential for the green ammonia market.

The Petronas project itself highlights the growing potential for partnerships and alliances in India’s green ammonia industry. The involvement of GIC, Singapore’s sovereign wealth fund, demonstrates the appeal this sector holds for global financial institutions. Industry forecasts point to remarkable growth, with some market analysts predicting impressive CAGR increases of over 70% for the Indian green ammonia market in the coming years.

Of course, there are challenges to navigate in this dynamic space. Green ammonia production costs remain high compared to conventional production methods, creating a hurdle for broader adoption. Developing robust infrastructure dedicated to storage and transport is another pressing need. The Indian government recognizes these needs and is actively supporting technological breakthroughs, infrastructural development, and the upskilling of the workforce. As the regulatory framework evolves and safety standards solidify, confidence in the sector will grow further. Strategic policies and a strong desire to decarbonize are proving to be key drivers for the expanding Indian green ammonia market.

With India’s determination to boost indigenization in the sector, opportunities abound for collaborations with international firms specializing in cutting-edge technology. India seeks domestic manufacturing of essential equipment like electrolyzers and is determined to develop its own indigenous solutions. Through a combination of external partnerships and focused internal research, India’s green hydrogen and ammonia sector is poised to transform India’s energy landscape and establish the nation as a global leader in sustainable solutions.


This post is a part of Climate G2I Intelligence series from Energy Alternatives India (EAI), India’s leading climate-tech consulting firm.

G2I stands for Gateway 2 India, and provides comprehensive market intelligence and go-to market assistance for International firms entering the Indian climate-tech market. More about Climate G2I from here




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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