In a significant policy step to operationalise the National Green Hydrogen Mission, the Ministry of New and Renewable Energy (MNRE) has notified the Green Ammonia and Green Methanol Standards, establishing the criteria that producers must meet for these fuels to be officially classified as “green”.
The notification defines emission thresholds and eligibility conditions for the production of green ammonia and green methanol, ensuring that downstream hydrogen-based fuels are produced using low-carbon pathways. The move is expected to provide regulatory clarity for developers, investors, and offtakers as India seeks to build a competitive green hydrogen ecosystem.
Enabling a Green Hydrogen Value Chain
While India had earlier defined standards for Green Hydrogen, the absence of formal definitions for hydrogen derivatives such as ammonia and methanol created uncertainty for project developers and exporters.
The newly notified standards fill this gap by extending sustainability criteria across the entire hydrogen value chain, ensuring that fuels produced from green hydrogen maintain low lifecycle emissions.
Green ammonia and green methanol are emerging as key hydrogen carriers and industrial decarbonisation fuels. They are expected to play a critical role in sectors such as:
- Fertiliser production
- Shipping and maritime fuels
- Chemicals and petrochemicals
- Steel and refining industries
By setting clear standards, MNRE has aligned India’s regulatory framework with emerging global markets for hydrogen-based fuels.
Defining “Green” Fuels
Under the notified framework, ammonia and methanol will be classified as “green” only if they meet prescribed emission intensity thresholds and are produced using green hydrogen that complies with national standards.
These criteria are designed to ensure that:
- Hydrogen used in production is generated from renewable energy sources
- Lifecycle greenhouse gas emissions remain below defined limits
- Production processes maintain traceability and certification requirements
Such standards are crucial for enabling credible carbon accounting, particularly for export markets such as Europe and Japan where strict sustainability criteria are being introduced.
Supporting India’s Hydrogen Export Ambitions
India aims to become a global hub for green hydrogen production and exports, targeting 5 million metric tonnes per annum (MMTPA) of green hydrogen production capacity by 2030 under the National Green Hydrogen Mission.
Hydrogen derivatives such as ammonia and methanol are expected to be central to this strategy, as they allow hydrogen to be transported and traded more easily across international markets.
Clear standards will help:
- Facilitate long-term offtake agreements with global buyers
- Enable certification and traceability of green fuels
- Support investment decisions for large-scale projects
Boosting Investor Confidence
The notification is also expected to accelerate project development across India’s emerging hydrogen clusters. Developers planning integrated projects involving electrolysers, renewable energy generation, and downstream fuel synthesis will now have clearer regulatory guidance.
Industry stakeholders have long emphasised that defining standards for hydrogen derivatives is essential for unlocking investments in export-oriented green fuel projects.
With this step, MNRE has moved closer to creating a comprehensive regulatory ecosystem for green hydrogen and its derivatives, strengthening India’s position in the global clean energy transition.
