In early April, a key moment in India’s clean energy journey was reached with the launch of the India’s Green Fuels: Baseline Market Study and Roadmap. India is one of the world’s fastest-growing economies, and one determined to diversify and transform its energy sector. With its ambitious climate goals, including achieving net-zero emissions by 2070, and a rapidly growing demand for sustainable energy solutions, India presents a unique opportunity for collaboration and innovation in low-carbon and clean energy.
Topsoe is proud to be part of this journey, contributing our expertise in advanced fuel technologies to the Baseline Market Study and Roadmap report. Commissioned by the Trade Council of Denmark in India and developed under the Green Transition Alliance India (GTAI), the report provides a comprehensive assessment of the current state of clean fuels in India.
It maps existing capacities, identifies key stakeholders, analyzes policy frameworks and highlights emerging opportunities for India and for Danish companies. It is hoped that the publication will be an invaluable resource to navigate the complexities of India’s clean fuel landscape and chart a path forward for industry leaders, policymakers and investors.
As Indian Prime Minister Narendra Modi said, “Denmark has the skills, India has the scale, and the world has the need for new technologies.” This sentiment was expanded upon by Pooja Kapur, the former Indian Ambassador in Copenhagen: “India has the scale as well as the skills and we are cooperating with Denmark to acquire even more skills and technologies for the green transition. There is a beautiful synergy between Denmark’s skills and technologies and India’s requirements.”
India: a market poised for transformation
India’s energy needs are vast and diverse. Currently, 88% of the country’s primary energy requirements are met by coal and oil. However, this dominance is gradually diversifying to renewable energy sources, which now account for 3.4% of the primary energy supply. With over 203 GW of installed renewable energy capacity as of October 2024, India ranks fourth globally in renewable energy deployment. Solar power leads the way, followed by wind and hydroelectric power.
Despite these advancements, the industrial, transportation and power sectors remain heavily reliant on fossil fuels. This is where clean fuels, such as biofuels, synthetic fuels (e-fuels), green hydrogen and sustainable aviation fuels (SAF), come into play. These fuels offer transformative solutions to decarbonize hard-to-abate sectors like aviation, shipping, heavy transport and steel production.
India’s strategic focus on these fuels is evident in its policies, including the National Green Hydrogen Mission, the Methanol Economy Program and the National Policy on Biofuels. These initiatives aim to reduce fossil fuel dependency, promote renewable energy adoption and foster innovation in clean fuel technologies.
India’s Green Fuels report zeroes in on five key fuels: second-generation (2G) bioethanol, low-carbon and green hydrogen, low-carbon and green ammonia, methanol and SAF. Each of these fuels holds significant potential to drive India’s decarbonization efforts. For instance, India’s abundant agricultural residues and municipal solid waste provide a robust feedstock base for biofuels. Similarly, the country’s growing chemical and transportation sectors create a strong demand for low-carbon methanol and SAF. However, challenges such as infrastructure gaps, high production costs and regulatory hurdles must be addressed to unlock the full potential of these fuels.
Topsoe’s role in India’s Roadmap
At Topsoe, we are well positioned to contribute to India’s clean energy transition. With decades of experience in fuel production technologies, we are at the forefront of developing solutions for renewable diesel, sustainable aviation fuel (SAF), green and low-carbon hydrogen, green and low-carbon ammonia and methanol.
For instance, Topsoe currently provides the technology behind 30% of global SAF production. As global aviation and transport sectors face mounting pressure to reduce emissions, SAF and renewable diesel have emerged as critical solutions. Topsoe’s innovative technologies and catalysts enable the production of these fuels from renewable feedstocks, offering a viable pathway to decarbonize these sectors.
Green and low-carbon hydrogen are other key areas from Topsoe. Hydrogen is a cornerstone of the energy transition. Topsoe is expected to begin production of SOEC electrolyzer cells this year for green hydrogen using renewable electricity, with our SynCOR™ technology is a leading solution for low-carbon hydrogen production. Topsoe’s technologies are designed to optimize efficiency and reduce costs in low-carbon ammonia production, enabling production of fertilizers and progressing the future role of ammonia as a shipping fuel.
Over the decades, Topsoe has been active in supporting India ammonia plants to continuously reduce energy use through revamps, for instance. This has allowed them to stay in line with the energy levels mandated by the Indian government. Now, our technology in SAF and green ammonia are finding markets in India, while late in 2024, we signed an agreement with developer Hygenco to provide our Topsoe technology for their upcoming green ammonia plant in Odisha, India.
Collaboration and challenges line the path ahead
The collaboration between India and Denmark under the Green Strategic Partnership (GSP) demonstrates the power of international cooperation in addressing global challenges. Initiatives like the Green Transition Alliance India (GTAI) bring together Danish companies with advanced technologies and Indian industries with ambitious decarbonization goals. This partnership not only accelerates the adoption of new fuels in India but also boosts economic and technological cooperation between the two countries.
However, the road ahead is not without challenges. Green hydrogen and ammonia production, for example, requires substantial renewable electricity and specialized infrastructure, such as pipelines and storage tanks. Similarly, the high costs of renewable electricity and electrolyzers make green ammonia and hydrogen production significantly more expensive than their conventional counterparts.
Infrastructure gaps, such as the lack of SAF production facilities and carbon capture systems pointed to in the report, further complicate the scaling of clean fuels. Additionally, India’s regulatory framework, while evolving, still lacks the specificity and incentives needed to support large-scale clean fuel projects.
Despite these barriers, the opportunities are immense. India’s rising energy demand, expanding chemical sector and focus on sustainability create a fertile ground for clean fuel adoption. State-level initiatives in Gujarat, Maharashtra, and Tamil Nadu for green hydrogen and ammonia and in Uttar Pradesh and Punjab for biofuels, highlight the regional potential for clean energy projects. Policies incentivizing carbon capture, utilization and storage (CCUS) further enhance the feasibility of producing green fuels like methanol and ammonia.
A shared vision
The India’s Green Fuels: Baseline Market Study and Roadmap report is a tribute to the shared vision of India and Denmark for a sustainable future. By using Danish expertise in advanced technologies and India’s ambitious clean energy goals, we can collectively overcome challenges and make the most of opportunities in the evolving fuel sector. At Topsoe, we remain committed to driving this transformation, working together with our partners to build a more resilient energy present and future.
The journey to a low-carbon economy in India is and will be complex, but with collaboration, innovation and determination, we can turn challenges into opportunities and pave the way for a bright future.
A big thank you to the Trade Council of Denmark, Environmental Resources Management (ERM), Green Fuels Advisory Members, Ambassador of Denmark to India H.E Rasmus Abilgaard Kristensen and our fellow members in The Green Fuels Alliance India: Danfoss, Brintbranchen Hydrogen Denmark, European Sustainable Solutions, Maersk, Mash Makes and Novonesis.