By Karan Sharma
The Indian government has taken a key policy initiative in the green hydrogen and its derivatives space. In February 2026, the Ministry of New and Renewable Energy (MNRE) notified separate standards for green ammonia and green methanol, building on the Green Hydrogen Standard for India, which was notified in August 2023. As per the latest notification, the total non-biogenic greenhouse gas emissions arising from the production of green hydrogen, ammonia synthesis, purification, compression and on-site storage must not exceed 0.38 kg of carbon dioxide equivalent per kg of ammonia, taken as an average over the past 12-month period. For green methanol production, the total non-biogenic greenhouse gas emissions arising from green hydrogen production, methanol synthesis, purification and on-site storage must not exceed 0.44 kg of carbon dioxide equivalent per kg of methanol, calculated as an average over the preceding 12-month period.
Both standards also allow renewable electricity to be counted when it is stored in an energy storage system or banked with the grid under applicable regulations. For methanol, carbon dioxide can come from biogenic sources, direct air capture or existing industrial sources, subject to future revisions by the MNRE. Furthermore, the MNRE has stated that detailed procedures for measurement, reporting, monitoring, on-site verification and certification will be specified separately.
Impact
These standards build directly on the existing green hydrogen definition and are intended to create a common certification chain linking hydrogen production to downstream fuels. In practical terms, this is important because it connects the base fuel of hydrogen with its downstream derivatives of ammonia and methanol, rather than treating them as separate silos. Moreover, the application of similar accounting structures to ammonia and methanol ensures that derivative fuels are assessed using comparable emission methodologies. Additionally, the rules allow tenders and procurement processes issued prior to the notification date to continue under earlier conditions, although procuring entities may align contracts with the updated standards where feasible and mutually agreed. This flexibility aims to reduce disruption to ongoing projects while signalling the direction of future procurement norms.
The broader context of these standards lies within the National Green Hydrogen Mission, which targets the production of 5 million tonnes of renewable hydrogen annually by 2030. The fertiliser sector reportedly remains one of the largest potential consumers of hydrogen-derived fuels. In India, ammonia consumption is around 17-19 million tonnes per year, with fertilisers accounting for over half of the country’s hydrogen demand. In March 2026, the central government facilitated long-term green ammonia supply agreements between producers and fertiliser companies to stabilise domestic supply chains and substitute imports. Hence, establishing measurable emission limits for ammonia has direct implications for import substitution and domestic production planning. Moreover, the shipping and chemical industries are emerging as additional demand centres, particularly for methanol-based fuel chains. As per the International Energy Agency, consistent certification frameworks can reduce trade friction and enable international recognition of low-emission fuels, making domestic standards relevant for export competitiveness as well as internal market discipline.
Outlook
Despite these regulatory advances, cost economics remain central to the commercial case for green hydrogen derivatives. India reportedly recorded its lowest-ever discovered green hydrogen price of Rs 279 per kg in a Numaligarh Refinery tender in February 2026. The Solar Energy Corporation of India’s green ammonia auction in 2025 also witnessed lowest recorded price of Rs 49.75 per kg. Although there is improving price discovery, the economics for both green ammonia and green methanol is still highly sensitive to renewable power prices, feedstock sourcing and scale, which means the commercial case remains strongest where policy support and large offtake contracts reduce risk.
The value of the recently notified standards lies in making low-carbon claims comparable and tradable. However, looking ahead, the long-term impact of these standards will depend on implementation discipline. Net, net, the green ammonia and methanol standards represent a transition from policy targets to an enforceable regulatory mechanism, positioning India to scale domestic production while aligning with emerging global low-emission-fuel markets.
