Green ammonia and green methanol, both derived from green hydrogen, are expected to see a significant surge in demand, especially in the shipping sector. Vineet Mittal, chairperson of Avaada Group, shared his insights on this growing need, indicating that the shipping industry is set to become the primary driver for these green hydrogen derivatives in the near future, as discussed in a recent interview with ET.
He noted that the anticipated implementation of the Carbon Border Adjustment Mechanism by the European Union is likely to lead to a significant increase in the number of offtake agreements related to green hydrogen derivatives. This mechanism is expected to reshape international trade dynamics by imposing costs on carbon emissions associated with imports, thereby incentivizing the use of greener alternatives like green hydrogen.
Despite the current lackluster response to offtake agreements among countries that are interested in trading these hydrogen derivatives, largely due to their higher costs compared to blue hydrogen and various regulatory hurdles, Mittal remains optimistic about the future of green hydrogen.
“While the global landscape for green hydrogen currently presents challenges in terms of securing offtake agreements, we are genuinely hopeful about its potential moving forward,” he stated. He emphasized that these early struggles are merely part of the transition to a more sustainable energy future, suggesting that once the market adjusts and the costs of green hydrogen become more competitive, demand will flourish.
In 2023, India launched its National Green Hydrogen Mission, aiming to become a key player in the global green hydrogen market, with a particular emphasis on facilitating exports. The Indian government has been actively engaging in discussions with nations such as Japan, South Korea, and various EU countries to establish purchase agreements with Indian firms. Mittal expressed his belief that India is on the path to becoming a global leader in the production and export of green molecules, stating, “Our company is entirely committed to seizing this opportunity.”
Recently, at the RE-Invest summit held in Gandhinagar, Avaada Group made a significant pledge to the Indian government, committing to develop a staggering 30 gigawatts (GW) of renewable energy and establish 10 GW of solar module and cell manufacturing capacity. This pledge reflects the company’s dedication to advancing India’s green energy capabilities and underscores the broader national ambition to enhance renewable energy production ahead of the fiscal year 2030.
While the path for green hydrogen and its derivatives may currently be fraught with challenges, Mittal’s vision and the commitments made by Avaada Group signal a robust belief in the sector’s future viability. The global energy landscape is evolving, and with strategic initiatives and international partnerships, the potential for green hydrogen to transform industries is becoming increasingly apparent.
Avaada Group is a leading renewable energy company based in India, committed to advancing sustainable solutions through innovative technologies. With a focus on solar and wind energy, the company aims to develop significant renewable energy capacity, including a commitment to 30 GW of renewable energy and 10 GW of solar manufacturing. Avaada Group is dedicated to promoting green hydrogen initiatives globally.
