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INOX Air Products signs deal for large-scale green ammonia plant in India

INOX Air Products (INOX AP) has announced that it has signed a major deal with the Government of Maharashtra (a state in western India) for constructing a large-scale green ammonia plant with a planned outlay of $3bn.

Set to be commissioned within a three to five year timeline, the plant is expected to produce 500,000 metric tonnes per annum (MTPA) of renewable produced liquid ammonia.

As a climate-neutral hydrogen carrier, liquid ammonia could play a key role in the global value chain for sustainable green hydrogen.

Ammonia contains nearly 20% hydrogen by weight, making it one of the most efficient hydrogen carriers. This high density means it can transport and store more hydrogen in a smaller volume compared to other forms, such as compressed or liquefied hydrogen.

Why is ammonia such a good hydrogen carrier?

In addition to its high hydrogen density, ammonia also boasts efficient storage and transport at low pressure or moderate temperature and it can harness existing global infrastructure. It is also highly versatile and can be used either directly as a fuel in internal combustion engines, gas turbines and fuel cells or it can be cracked back into nitrogen and hydrogen.

Commenting on the announcement, INOX AP stated, “We are grateful to the Hon’ble CM of Maharashtra Sh Eknath Shinde, the Department of Industries, the Department of Energy, the Maharashtra Industrial Development Corporation and the Department of Energy and Development for entrusting us with this vital responsibility under the aegis of the progressive Maharashtra Green Hydrogen Policy 2023.”

Released in October 2023, the state’s green hydrogen policy outlines plans to achieve 500 kTPA green hydrogen and derivatives production capacity by 2030.

Valid until March 2030, it proposes a slew of incentives such as up to 30% capital cost subsidy for specified projects, and 50% concession in transmission charges for specified projects and 50% concession in transmission charges for specified projects.

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