India and Japan have signed a landmark agreement to establish a clean hydrogen and ammonia corridor, with the goal of launching trade flows by 2030 and scaling up through 2040. The pact marks a significant step in advancing the decarbonisation agendas of both nations, aligning policy, finance, and technology to accelerate the global hydrogen economy.

At the heart of the agreement is the creation of a joint steering committee, with ministerial oversight, to coordinate projects, policy, and logistics. The collaboration will draw on each nation’s strengths — India’s abundant renewable energy potential and available land, and Japan’s advanced technology, financing capacity, and growing demand for clean hydrogen and ammonia.

The framework combines multiple mechanisms to enable price-supported exports and investment certainty. A central pillar is the Joint Crediting Mechanism (JCM), which allows both countries to exchange Internationally Transferred Mitigation Outcomes (ITMOs) from verifiable clean-energy projects. This will facilitate carbon-credit trading and support international climate goals.

Japan’s state-run Japan Oil, Gas and Metals National Corporation (JOGMEC) will also deploy Contracts for Difference (CfDs) to help bridge the cost gap between fossil-based and green hydrogen or ammonia. This support will be especially critical for projects meeting India’s National Green Hydrogen Mission (NGHM) target of less than 2 kg CO₂ per kg of hydrogen produced.

Additionally, both countries will align certification standards, life-cycle analysis frameworks, and carbon accounting boundaries. These measures will ensure compatibility across supply chains, particularly in the shipping of ammonia and its conversion back to hydrogen through cracking technologies.

Initial exports are expected to come from Indian port-based ammonia hubs, some of which are targeting capacities exceeding 1 million tonnes per year. These hubs will be supported by long-term offtake agreements with Japanese energy, steel, and maritime companies, creating reliable demand signals for Indian producers.

For Japan, the pact represents a critical step toward achieving its target of 3 million tonnes of hydrogen demand by 2030. The country has already demonstrated the feasibility of co-firing 20% ammonia in thermal power plants and is expanding research into applications for turbines, steelmaking, and shipping.

Source:

https://fuelcellsworks.com/2025/09/01/clean-hydrogen/india-and-japan-ink-pact-to-launch-clean-hydrogen-ammonia-corridor-with-2030-targets