Green Ammonia and Methanol: The Clean Fuels Industrial Nations Cannot Ignore

Industrial economies today face a defining challenge: decarbonising sectors that were built on fossil fuels and have historically been the most resistant to change. Shipping, fertilisers, petrochemicals and long-distance logistics continue to rely on energy-dense molecules that electricity alone cannot replace. As nations reassess their pathways to net zero, green ammonia and green methanol are emerging not merely as alternatives, but as strategic enablers of large-scale industrial decarbonisation without compromising economic growth.

This urgency is being driven by tightening global regulations, carbon pricing mechanisms and energy security concerns. International shipping is moving towards stricter emission norms, carbon border taxes are reshaping global trade, and recent geopolitical disruptions have highlighted the risks of fossil fuel dependence. For instance, the International Maritime Organisation’s targets to cut shipping emissions by at least 20–30 percent by 2030 have accelerated the search for scalable clean marine fuels. In this environment, renewable molecules are no longer optional—they are becoming industrial necessities.

Both green ammonia and green methanol are produced using renewable hydrogen, placing them at the centre of the global shift toward clean molecules. Their relevance extends beyond environmental responsibility to include long-term price stability, energy security and reduced exposure to volatile fossil fuel supply chains.

Why Green Ammonia Matters

Green ammonia, produced using renewable hydrogen from water electrolysis, enables emission reduction at the production stage while continuing to support critical industrial applications. Its growing importance lies in its ability to integrate into existing fertiliser value chains, function as a scalable energy carrier and support the transition of hard-to-abate sectors without disrupting industrial operations.

For industrial nations, green ammonia represents a bridge between today’s infrastructure and tomorrow’s low-carbon economy. It allows decarbonisation to begin within existing value chains rather than requiring complete system replacement. Globally, fertiliser production accounts for nearly two percent of total carbon emissions, making low-carbon ammonia a critical lever for industrial decarbonisation. While ammonia’s toxicity requires robust safety and handling frameworks, existing fertiliser and chemical industries already possess decades of experience in managing these risks at scale.

The first step in using ammonia at scale is securing a reliable supply of green hydrogen. A significant example of this foundational work is the green hydrogen facility delivered at Jindal Stainless in Hissar. A similar step is visible in the hydrogen facility commissioned at BPCL Kochi, which aligns with long-term plans to integrate low-carbon hydrogen and ammonia into refining and fertiliser-linked value chains.

With a capacity of 350 Nm³ per hour, the project reflects how large industries are beginning with upstream hydrogen adoption before moving toward derivatives like ammonia. It provides a practical demonstration of how existing industrial systems can integrate electrolytic hydrogen without disruption.

The demand for clean maritime fuels is also driving early adoption. The hydrogen dispensing system established at the IOCL refinery in Gujarat marks a shift in how refineries and transport systems are preparing for future ammonia-linked mobility. Internationally, several ports in Europe and East Asia have already announced ammonia-ready bunkering plans, signalling the direction in which global shipping infrastructure is moving.

Agriculture is a critical application area for green ammonia. It enables lower-carbon fertiliser production and supports the transition of agricultural value chains toward more sustainable inputs without requiring structural disruption.

Methanol’s Strategic Edge

Green methanol is gaining traction even faster in some segments, particularly global shipping. It can be stored and transported at normal temperatures and pressures, and it fits into existing marine fuel handling systems with minimal changes. These practical advantages explain why green methanol is expected to see high adoption by 2030, especially as ports across the world begin preparing for methanol bunkering infrastructure. Several global shipping companies have already placed orders for methanol-fuelled vessels, underlining industry confidence in its near-term viability.

Beyond shipping, methanol plays a critical role in the chemical industry. It can be produced by combining renewable hydrogen with captured carbon dioxide or biomass-based carbon, effectively creating a circular carbon pathway. This approach not only reduces emissions but also redefines carbon as a reusable industrial resource rather than a waste product.

The technical collaboration between Nuberg EPC and EDL Anlagenbau is an example of this direction, where engineering efforts are focused on integrating electrolysis and carbon capture to produce green methanol that can feed into synthetic fuels and chemical applications. The goal of such work is not only to reduce emissions but to create a more sustainable carbon loop for heavy industry. These efforts are complemented by Nuberg Green Energy, which is actively engaged in developing and delivering solutions across green ammonia and green methanol value chains, reflecting the growing role of specialised engineering players in clean molecule adoption.

Methanol also plays a role in the production of sustainable aviation fuels through derivative pathways. This adds to its relevance as aviation looks for cleaner fuel sources that can be produced at scale without compromising technical performance.

The Road Ahead

Challenges remain, including the current cost of green hydrogen, the need for supportive policy frameworks and the development of export and fuel supply and handling infrastructure. With electrolyser costs declining and renewable power becoming increasingly competitive, the cost gap between green and conventional molecules is expected to narrow significantly over the next decade. However, real-world progress is already visible. Industries are beginning with smaller hydrogen installations, gaining operational confidence and gradually preparing for larger transitions toward ammonia and methanol-based systems. This step-by-step evolution reflects the practical realities of industrial transformation.

On-ground progress is already emerging across projects that introduce green hydrogen into refineries, steel plants and chemical complexes. These initiatives show how industries are beginning with smaller units, gaining operational familiarity and gradually preparing for larger transitions to ammonia and methanol.

Early investment in green ammonia and green methanol will enable nations to shape future clean fuel trade routes, strengthen industrial competitiveness and build resilience as the cost of carbon continues to rise. For India, this transition offers an opportunity to leverage strong renewable resources and engineering capabilities to emerge not only as a consumer but also as a global supplier of clean molecules.

Nations that act decisively today will define the energy and industrial landscape of tomorrow. Green ammonia and green methanol offer a credible, scalable pathway toward a low-carbon future—an opportunity that industrial economies can no longer afford to overlook.

© This article was first published in Energetica India, December 29, 2025.