India is poised to become a competitive exporter of green hydrogen and ammonia, leveraging its low-cost renewable energy, especially solar. The country is already securing offtake agreements with international and domestic buyers, says an S&P analyst.
India has the potential and opportunity to become a competitive exporter of green hydrogen and ammonia, supported by its strong renewable energy resources, particularly solar, S&P Global Energy Senior Analyst Matthew Hodgkinson said.
Speaking to ANI on the sidelines of Horizons Clean Energy Expansion India 2026, hosted by S&P Global Energy, Hodgkinson said India has among the lowest-cost renewable energy resources in the world, which could help it produce green hydrogen at competitive prices.
India's Competitive Edge in Renewables
“India is one of the cheapest places in the world for resource potential for renewable energy, especially for solar,” Hodgkinson said.
He said using renewable energy to produce hydrogen could help India monetise its abundant renewable resources.
Growing Market: Domestic and International Interest
The event brings together policymakers, industry leaders and clean energy experts to discuss the expansion of India’s clean energy sector and its growing role in global clean energy trade.
Hodgkinson said India’s cost advantage is already attracting interest from overseas buyers, with Indian projects securing emerging offtake agreements.
India has signed agreements with European and Far Eastern buyers for ammonia and hydrogen, which could support the development of an international market for these fuels, he said.
The opportunity, however, is not limited to exports. Indian project developers have also signed agreements to supply green ammonia to the domestic market, with the aim of replacing imports of grey ammonia.
“We're very positive about the sector overall in India for the long term for both international and domestic sales,” Hodgkinson said.
Future Growth and International Partnerships
He said India’s lower renewable energy costs could be particularly important compared with major energy-importing markets such as Europe, Japan and South Korea.
Hodgkinson also stressed the importance of international partnerships in developing India’s green hydrogen sector.
He said Indian projects have received favourable interest from European buyers of green hydrogen and its derivatives.
Bilateral agreements between India and European countries are also helping support project development and offtake arrangements, he added.
Over the next five years, several large-scale green hydrogen projects already announced in India are aexpected to begin operations.
These projects could help expand both domestic consumption and international trade in green hydrogen and ammonia.
The wider event is also focusing on project bankability and demand creation, infrastructure and technology deployment, domestic manufacturing, supply-chain resilience and access to international markets.
Hodgkinson said the combination of India’s renewable energy resources, project development capabilities and international offtake agreements could support the long-term growth of the country’s green hydrogen and ammonia markets.
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