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    Green 'n' bear it, it's ammonia, GH2 start

    Synopsis

    Ammonia is used for manufacturing nitrogenous fertilisers, and the green ammonia production process is 100% renewable and carbon-free. Once concluded, the deal will be the largest FDI to date in this sector as India seeks to decarbonise its economy.

    Green ’n’ Bear It, It’s Ammonia, GH2 StartET Bureau
    India's clean energy sector is growing. Proof: Malaysian energy giant Petronas, Singapore sovereign wealth fund GIC and founders of Greenko Energy Holdings are reportedly investing $2 billion in AM Green, a platform established for green molecules, including green hydrogen (GH2) and green ammonia. Ammonia is used for manufacturing nitrogenous fertilisers, and the green ammonia production process is 100% renewable and carbon-free. Once concluded, the deal will be the largest FDI to date in this sector as India seeks to decarbonise its economy.

    The investment decision demonstrates investor confidence, robustness of the industry in India and the advantages of policy certainty and infra support. The plan is to produce 5 million tonnes of green ammonia annually by 2028-30. GoI is working to make Kandla, Paradip and Tuticorin ports into GH2 and green ammonia export hubs. While this is a good step, GoI must nudge the domestic economy to decarbonise. Green ammonia can help decarbonise the farm sector without endangering food security as it allows a switch to cleaner feedstock for fertilisers. The reduced dependence on natural gas by the fertiliser industry will bring down subsidy and fuel import bills. Nest steps: set standards for green ammonia, focus on certification and introduce mandates to create a domestic market, and give the industrial decarbonisation process a push.

    The Petronas-GIC-Greenko investment should bolster India's position as it prepares for COP28. It should use these developments to demonstrate that far from being a coal-hugging emerging economy, it is a low-middle-income country trying to lay the foundations of a decarbonised economy through its RE programme, and focused push on GH2 and green ammonia.

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