Industrial process emissions contribute to 25-30% of total global emissions. The key sectors that have emissions inbuilt into the production include Fertilizers, Steel, Oil Refining, Cement etc. Traditionally these sectors were considered hard to abate. Most of these sectors used Green Hydrogen, and Ammonia manufactured using natural gas, oil, coal etc., which resulted in significant carbon emissions. However, Hydrogen and Ammonia manufactured through cleaner sources offer a potent alternative to the fossil fuels used as feedstock for production in these sectors.
With global impetus on decarbonization, the demand for Green Hydrogen is expected to increase significantly. The global consumption of Hydrogen is around 74 million tons and is growing consistently. India’s demand for Hydrogen is approximately 6 million tons and has a similar upward trend in consumption as other countries globally. Hydrogen can be used in new applications like mobility, blending natural gas pipelines, etc.
The global demand for Ammonia is around 180 million tons, with India being the third-largest ammonia producer. In 2020, the country recorded over 15 million tons of ammonia production and production is expected to reach 17 million tons by 2026. About 90% of Ammonia produced worldwide is used in fertilizer to help sustain food production for billions of people worldwide. Ammonia also has industrial uses. Ammonia can absorb substantial amounts of heat from its surroundings when used as refrigerant gas and in air-conditioning equipment.
‘Green Hydrogen’ and ‘Green Ammonia’ is also vital to the country as fuel for the future and will go a long way in reducing the Nation’s dependence on crude imports.
Intending to leverage business opportunities created in Green Hydrogen and Green Ammonia space, Avaada has set up a separate vertical, which plans to develop the production of 4 MTPA of Green Ammonia by 2030. We are well-positioned to build on our renewable energy capabilities and are looking to partner with the right organizations to develop multiple projects in the Green Hydrogen and Ammonia space.