India sets CO2 emissions standards for renewable ammonia, methanol to boost trade

India has set emission standards for renewable ammonia and renewable methanol production, the government said March 7, marking a key step in developing its renewable hydrogen derivatives market to boost trade.

The Ministry of New and Renewable Energy notified the greenhouse gas emission limits that producers must meet for their ammonia and methanol to be classified as "renewable," the ministry said in a statement.

"The notifications of the green ammonia and green methanol standards bring clarity to industry, investors and other stakeholders engaged in the development of green hydrogen derivatives," the ministry said.

"The standards will facilitate decarbonization of sectors such as fertilizers, shipping, power and heavy industry while strengthening India's position as a reliable producer and exporter of green fuels," it added.

Emissions threshold

Renewable ammonia must have total non-biogenic greenhouse gas emissions -- arising from green hydrogen production, ammonia synthesis, purification, compression and on-site storage -- of no more than 0.38 kg CO2 equivalent per kg of ammonia, calculated as an average over the preceding 12 months, the ministry said.

Renewable methanol must have total non-biogenic greenhouse gas emissions -- arising from renewable hydrogen production, methanol synthesis, purification and on-site storage -- of no more than 0.44 kg CO2 equivalent per kg of methanol, calculated as an average over the preceding 12 months, it added.

The notification said that CO2 used in renewable methanol production may come from biogenic sources, direct air capture or existing industrial sources.

The ministry may revise the eligible sources of CO2 from time to time, with any changes applying prospectively and including appropriate grandfathering provisions.

Storage, banking permissible

In renewable ammonia and methanol production, renewable energy can also include electricity from renewable sources that is stored in an energy storage system or banked with the grid, the ministry said.

Detailed methodologies for measuring, reporting, monitoring, on-site verification and certifying renewable ammonia and methanol will be issued separately, it added.

"Indian green hydrogen developers are targeting export markets for renewable ammonia and renewable methanol," the ministry said.

"With this notification, India further consolidates its regulatory framework for renewable hydrogen and its derivatives under the National Green Hydrogen Mission," it added.

The statement clarified that any tender, bid process or solicitation issued before the date of the notification may continue under the terms and conditions in effect at the time of its issuance.

Platts, part of S&P Global Energy, assessed Middle East renewable-derived ammonia delivered into Far East Asia (with high-capacity factors) at $823.66/metric ton on March 2, up 0.86% month over month.