Why India and Japan are betting big on clean hydrogen and green ammonia | WION Decodes
&imwidth=600&imheight=450&format=webp&quality=medium "Why India and Japan are betting big on clean hydrogen and green ammonia | WION Decodes")
Why India and Japan are betting big on clean hydrogen and green ammonia | WION Decodes Photograph: (ANI, AFP)
As Japan PM Sanae Takaichi visits India, New Delhi and Tokyo are set to deepen cooperation on clean hydrogen and green ammonia. Here's why both countries see the partnership as key to energy security, decarbonisation, and building a future clean energy trade corridor.
Japan Prime Minister Sanae Takaichi will meet Indian Prime Minister Narendra Modi as she arrive in India for the first time. Among other things, the two leaders are expected to discuss advancing cooperation on clean hydrogen and green ammonia, a key pillar of the India-Japan strategic partnership aimed at strengthening energy security, accelerating industrial decarbonisation, and building resilient clean energy supply chains. But why is India and Japan betting on clean hydrogen and ammonia:
India's abundant solar energy and vast land availability make it one of the world's cheapest producers of green hydrogen and ammonia. India aims to produce 5 million metric tonnes (MMTPA) of green hydrogen annually by 2030 and reduce dependence on imported fossil fuels. This positions India as a global hub for green hydrogen and ammonia exports. Additionally, industrial decarbonisation supports cleaner production in sectors such as fertilisers, heavy industry and power generation.
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Japan lacks sufficient land for large-scale solar and wind projects but like India, it also wants to reduce dependency on imported energy specially after the West Asia war. It seeks alternatives to imported coal and natural gas. Clean ammonia can be used as a chemical feedstock, semiconductor cleaning agent and as fuel for co-firing in thermal power plants. Japan has created opportunity with its Hydrogen Society Promotion Act as it offers long-term Contracts for Difference (CfD) subsidies. Japanese companies like IHI are partnering with India's ACME Group on a $3 billion green ammonia project in Odisha.
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In this regard, both Japan and India are mutually beneficial to each other. Japan provides the necessary investment for hydrogen and ammonia production while India has immense resource. Japan is also providing advanced technology, while India offers manufacturing potential. The partnership supports both countries' long-term decarbonisation and energy security objectives. India and Japan are developing a dedicated clean energy trade route. Both countries are aligning certification norms, lifecycle analysis and trade rules. The Joint Crediting Mechanism (JCM) enables India to generate carbon credits that Japan can use to meet its climate goals.
