New agreements worth over 4 lakh tonnes per annum signed in 2026; investments of more than Rs 90,000 crore envisaged

 

THEBUSINESSBYTES BUREAU

NEW DELHI, OCTOBER 29, 2026

India’s green hydrogen sector has secured firm and signed offtake commitments of 5,55,610 metric tonnes per annum (MTPA) as of October 2026, positioning the country among the leading global players in the emerging clean energy market, with the agreements expected to attract investments exceeding Rs 90,000 crore.

Indian companies signed 18 new green hydrogen offtake agreements for more than 4 lakh MTPA in 2026, reflecting growing international demand for India’s green energy products and strengthening the country’s ambitions to become a major supplier of low-carbon fuels.

The cumulative offtake commitments account for approximately 11 per cent of the National Green Hydrogen Mission’s production target of 5 million metric tonnes per annum (MMTPA) by 2030. The proposed investments are estimated at around USD 9.5 billion, underlining the scale of capital required to translate the agreements into operational projects.

The National Green Hydrogen Mission, approved by the Union Cabinet with an initial outlay of Rs 19,744 crore up to 2029-30, seeks to establish India as a global hub for the production, use and export of green hydrogen and its derivatives, including green ammonia and green methanol.

The mission envisages the creation of 125 GW of renewable energy capacity, investments exceeding Rs 8 lakh crore, more than six lakh full-time jobs and the avoidance of 50 million tonnes of carbon dioxide emissions annually by 2030.

Indian companies have entered into strategic partnerships and long-term supply agreements with buyers across Japan, South Korea, Germany and other international markets, signalling growing opportunities for the country’s green ammonia and green methanol industries.

ACME Group has signed an agreement with Japan’s IHI for the supply of 4,88,000 MTPA of green ammonia. The company has also entered into an agreement to supply 1,00,000 MTPA of green methanol to Mitsubishi Gas Chemical (MGC) of Japan.

Larsen & Toubro (L&T) and Japan’s ITOCHU have formed a special purpose vehicle for supplying 3,00,000 tonnes of green ammonia annually, with deliveries expected to begin in December 2029.

Reliance Industries Ltd (RIL) has entered into a long-term supply and purchase agreement with South Korea’s Samsung C&T Corporation, valued at more than USD 3 billion. The contract is among the major green ammonia offtake agreements globally, with deliveries expected to commence in 2028.

Agastya is also pursuing an offtake arrangement for supplying 2,50,000 MTPA of green methanol to Sri Lanka’s SAR.

In another significant development, AM Green was selected as the sole winner of the Asian lot in the H2Global auction conducted by HINT.CO GmbH, securing a long-term purchase agreement to supply renewable fuels of non-biological origin (RFNBO) ammonia to Germany.

Under the agreement, Hintco will purchase ammonia from AM Green for a minimum value of 585 million euros over 10 years, with the first deliveries expected in 2029. AM Green has also signed a firm offtake agreement with Germany’s Uniper for supplying 2,50,000 MTPA of green ammonia and a binding heads of agreement with Japan’s major power producer JERA for the long-term supply of 70,000 MTPA.

Jouno Joules has signed an offtake agreement with Select Energy GmbH for 600 tonnes per day of green ammonia, equivalent to approximately 2,19,000 MTPA.

Alongside export-oriented agreements, the government is working to create a sustained domestic market for green hydrogen through targeted interventions under the mission.

Under the Strategic Interventions for Green Hydrogen Transition (SIGHT) programme, agreements have been signed for the production and supply of 6,70,000 MTPA of green ammonia to 11 fertiliser units across the country.

Separately, projects have been awarded under the programme for the production and supply of 30,000 MTPA of green hydrogen to the refineries of Indian Oil Corporation Ltd (IOCL), Bharat Petroleum Corporation Ltd (BPCL), Hindustan Petroleum Corporation Ltd (HPCL) and Numaligarh Refinery Ltd (NRL).

The combination of export commitments and domestic procurement is expected to provide greater demand visibility for producers, support investment in renewable energy and electrolysers, and accelerate the development of infrastructure for green hydrogen and its derivatives.