What Happened
- Reliance Industries Limited (RIL) signed a long-term Supply and Purchase Agreement (SPA) with South Korea's Samsung C&T Corporation for the supply of green ammonia, with the deal valued at over $3 billion over a 15-year term starting from the second half of FY2029 (i.e., H2 of fiscal year ending March 2029).
- The agreement is described as one of the largest binding long-term green ammonia offtake agreements globally, and the first in a planned series of international partnerships under RIL's new energy business unit.
- RIL stated the deal "sets a benchmark in the global energy landscape, with India emerging as an exporter of green fuels," positioning the pact as evidence of India's potential to become a significant clean hydrogen and ammonia supplier.
- The agreement aligns with India's National Green Hydrogen Mission, which targets production of 5 million metric tonnes (MMT) of green hydrogen annually by 2030 and potential exports of up to 10 MMT of green hydrogen and green ammonia per year.
- Samsung C&T, the trading and construction arm of the Samsung conglomerate, is acquiring the green ammonia for South Korea's industrial decarbonisation — particularly in sectors such as power generation and fertiliser manufacturing.
Static Topic Bridges
Green Ammonia and the Hydrogen Economy
Green ammonia (NH₃) is produced by combining green hydrogen — hydrogen produced through electrolysis of water powered entirely by renewable electricity — with atmospheric nitrogen using the Haber-Bosch process. Unlike conventional ammonia, which relies on natural gas as the hydrogen feedstock (making it a significant CO₂ emitter), green ammonia has near-zero lifecycle emissions. It is considered a critical molecule for the global energy transition because it is easier to transport and store than hydrogen gas, and can serve as a hydrogen carrier, a direct fuel for shipping and power generation, and as a feedstock for green fertilisers.
- The Haber-Bosch process (developed 1909-1913) combines nitrogen (N₂) from the atmosphere with hydrogen (H₂) under high pressure and temperature in the presence of an iron catalyst to form ammonia — the foundational reaction for modern fertiliser production.
- Approximately 80% of global ammonia production is used in fertiliser manufacturing; the rest goes to industrial chemicals, explosives, and refrigerants.
- Green ammonia has a theoretical energy density of approximately 3 kWh/litre, making it suitable as a marine fuel and for long-distance energy transport.
- The International Maritime Organisation (IMO) has targeted net-zero greenhouse gas emissions from international shipping by 2050, driving demand for ammonia and methanol as alternative ship fuels.
Connection to this news: The RIL-Samsung deal is one of the first large commercial commitments to green ammonia trade between Asia's two major economies, validating the commercial case for India's investment in green hydrogen infrastructure.
India's National Green Hydrogen Mission (NGHM)
The Cabinet approved the National Green Hydrogen Mission in January 2023, with an initial outlay of ₹19,744 crore. The mission is implemented by the Ministry of New and Renewable Energy (MNRE) and aims to position India as a global hub for the production, use, and export of green hydrogen and its derivatives (including green ammonia).
- Green hydrogen production target: at least 5 MMT per annum by 2030.
- Associated renewable energy capacity addition required: approximately 125 GW by 2030.
- Export potential estimated: up to 10 MMT of green hydrogen or green ammonia per year.
- The SIGHT (Strategic Interventions for Green Hydrogen Transition) programme — with an outlay of ₹17,490 crore — provides financial support for domestic green hydrogen and electrolyser manufacturing.
- Green ammonia export potential represents a potential foreign exchange earning of tens of billions of dollars annually at projected prices.
- MNRE increased the annual green ammonia allocation for the fertiliser sector from 550,000 to 750,000 tonnes to support agricultural sector decarbonisation.
Connection to this news: The RIL-Samsung SPA is a direct commercial realisation of the NGHM's export objectives — providing a large offtake commitment that de-risks RIL's investment in green hydrogen production capacity, making the mission's targets more commercially viable.
India-South Korea Economic Relations and Critical Minerals Diplomacy
India and South Korea have a Comprehensive Economic Partnership Agreement (CEPA) in force since 2010, which covers goods, services, and investment. South Korea is among India's top 10 trading partners, with bilateral trade exceeding $20 billion annually. The clean energy sector has emerged as a new dimension of bilateral economic cooperation, with South Korean companies investing in India's renewables, semiconductors, and battery manufacturing sectors.
- India-South Korea bilateral trade: approximately $20-22 billion annually.
- India-South Korea CEPA signed: 2009; in force from January 2010.
- Samsung C&T Corporation is a distinct entity from Samsung Electronics — it is the trading, engineering, and construction arm of the Samsung Group, operating in infrastructure, energy, and commodities trading.
- South Korea has committed to achieving carbon neutrality by 2050 (Carbon Neutral and Green Growth Act, 2021), driving domestic demand for zero-carbon fuels including green ammonia.
- Green ammonia is designated as a key import for South Korea's hydrogen economy roadmap, which targets hydrogen contributing 33% of domestic energy mix by 2050.
Connection to this news: The deal is simultaneously a landmark in India's clean energy export ambition and a commercial mechanism through which South Korea meets its own decarbonisation commitments — reflecting the mutually beneficial economics of green fuel trade between a producer nation (India with abundant solar and wind resources) and a consumer nation (South Korea with limited renewable potential).
Key Facts & Data
- Deal value: over $3 billion.
- Deal duration: 15-year Supply and Purchase Agreement.
- Supply start date: second half of FY2029 (H2 2028-29).
- National Green Hydrogen Mission approved by Cabinet: January 2023.
- NGHM initial outlay: ₹19,744 crore.
- Green hydrogen production target: 5 MMT/year by 2030.
- Associated renewable energy capacity target: 125 GW by 2030.
- Export potential: up to 10 MMT green hydrogen/green ammonia per year.
- SIGHT programme outlay: ₹17,490 crore.
- India-South Korea CEPA in force since: January 2010.
- Haber-Bosch process invented: 1909-1913.
- IMO net-zero shipping target: 2050.