# Ammonia, methanol and e-fuels: Economics From near parity in India to ten times dearer jet fuel Source page: https://www.materialinsights.org/energy/e_efuels_store/sg-econ/ What this tab covers Economics and financial structure: capital versus operating cost, levelised cost of storage, and how the asset earns money. E-fuels cost from slightly more than fossil equivalents (Indian green ammonia, about 1.2 times grey ammonia, calculated) to about 10-12 times (synthetic jet fuel); EU mandates create guaranteed demand for the most expensive of them. #### Capex versus opex Mixed Costs are dominated by electrolysers and the electricity they use; hydrogen makes up about 70% of e-methane production cost. Synthesis loops, air separation and CO2 capture add capital. Opex is mainly power, plus stack replacement and, for carbon fuels, purchased CO2.^[8](https://argusmedia.com/en/news-and-insights/latest-market-news/2520845-viewpoint-co2-counting-key-to-japan-s-e-methane-plan) Hydrogen share of e-methane cost about 70%^[8](https://argusmedia.com/en/news-and-insights/latest-market-news/2520845-viewpoint-co2-counting-key-to-japan-s-e-methane-plan) #### Levelised cost of storage (delivered fuel cost) Mixed India's 2025 green ammonia auctions for 724,000 t a year cleared at a weighted average of about USD 604 per tonne, with a low of INR 51.8 per kg (about USD 591 per tonne) in August 2025, against grey ammonia at about USD 515 per tonne in March 2025. IRENA estimated e-methanol at USD 800-1,600 per tonne with biogenic CO2, or 1,200-2,400 with air-captured CO2, falling to USD 250-630 by 2050, against fossil methanol production costs of USD 100-250. EASA's reference prices for 2024 put synthetic aviation fuel at EUR 7,695 per tonne against EUR 734 for fossil jet fuel, about 10 times higher (calculated); the 2025 update, as reported, was EUR 7,520 against EUR 640, about 12 times. Japanese e-methane cost about JPY 250 per cubic metre in 2023.^[2](https://www.spglobal.com/energy/en/news-research/latest-news/energy-transition/080726-indias-seci-proposes-1-mil-mtyear-new-renewable-ammonia-auctions-official)^[3](https://www.pv-magazine-india.com/2025/08/05/secis-latest-auction-yields-green-ammonia-price-of-inr-51-8-per-kg/)^[4](https://www.irena.org/publications/2021/Jan/Innovation-Outlook-Renewable-Methanol)^[7](https://www.easa.europa.eu/en/downloads/141675/en)^[8](https://argusmedia.com/en/news-and-insights/latest-market-news/2520845-viewpoint-co2-counting-key-to-japan-s-e-methane-plan)^[11](https://www.safinvestor.com/news/149690/easa-2025/) Indian green ammonia (2025 auctions) about USD 604/t weighted average; low of USD 591/t^[2](https://www.spglobal.com/energy/en/news-research/latest-news/energy-transition/080726-indias-seci-proposes-1-mil-mtyear-new-renewable-ammonia-auctions-official)^[3](https://www.pv-magazine-india.com/2025/08/05/secis-latest-auction-yields-green-ammonia-price-of-inr-51-8-per-kg/) E-methanol today vs 2050 USD 800-2,400/t vs USD 250-630/t^[4](https://www.irena.org/publications/2021/Jan/Innovation-Outlook-Renewable-Methanol) Synthetic vs fossil jet fuel (2024) EUR 7,695/t vs EUR 734/t^[7](https://www.easa.europa.eu/en/downloads/141675/en) Synthetic vs fossil jet fuel (2025, as reported) EUR 7,520/t vs EUR 640/t^[11](https://www.safinvestor.com/news/149690/easa-2025/) #### Revenue stack and market participation Mixed Revenue comes from selling fuel and feedstock, not from grid services. Demand is policy-led: India's fertiliser offtake auctions (with a new 1 million t a year round proposed in 2026), the EU's synthetic aviation fuel sub-mandate, Japan's city gas targets, and power-plant co-firing. Seasonal storage value is a side benefit, for example in dispatchable ammonia-fired generation.^[2](https://www.spglobal.com/energy/en/news-research/latest-news/energy-transition/080726-indias-seci-proposes-1-mil-mtyear-new-renewable-ammonia-auctions-official)^[5](https://observatory.clean-hydrogen.europa.eu/eu-policy/refueleu-aviation)^[8](https://argusmedia.com/en/news-and-insights/latest-market-news/2520845-viewpoint-co2-counting-key-to-japan-s-e-methane-plan) Proposed new Indian round 1 million t/yr renewable ammonia (2026)^[2](https://www.spglobal.com/energy/en/news-research/latest-news/energy-transition/080726-indias-seci-proposes-1-mil-mtyear-new-renewable-ammonia-auctions-official) #### Sources 1. [India's SECI proposes 1 mil mt/year new renewable ammonia auctions](https://www.spglobal.com/energy/en/news-research/latest-news/energy-transition/080726-indias-seci-proposes-1-mil-mtyear-new-renewable-ammonia-auctions-official) S&P Global Commodity Insights, 2026 2. [SECI's latest auction yields green ammonia price of INR 51.8 per kg](https://www.pv-magazine-india.com/2025/08/05/secis-latest-auction-yields-green-ammonia-price-of-inr-51-8-per-kg/) pv magazine India, 2025 3. [Innovation Outlook: Renewable Methanol](https://www.irena.org/publications/2021/Jan/Innovation-Outlook-Renewable-Methanol) IRENA and Methanol Institute, 2021 4. [ReFuelEU Aviation](https://observatory.clean-hydrogen.europa.eu/eu-policy/refueleu-aviation) European Clean Hydrogen Observatory, 2025 5. [2024 Aviation Fuels Reference Prices for ReFuelEU Aviation (briefing note)](https://www.easa.europa.eu/en/downloads/141675/en) EASA, 2025 6. [Viewpoint: CO2 counting key to Japan's e-methane plan](https://argusmedia.com/en/news-and-insights/latest-market-news/2520845-viewpoint-co2-counting-key-to-japan-s-e-methane-plan) Argus Media, 2023 7. [EASA publishes 2025 reference prices for ReFuelEU Aviation](https://www.safinvestor.com/news/149690/easa-2025/) SAF Investor (reporting EASA), 2026 ## Other sections - [Summary](https://www.materialinsights.org/energy/e_efuels_store/index.md) - [Overview](https://www.materialinsights.org/energy/e_efuels_store/overview/index.md) - [Correlation](https://www.materialinsights.org/energy/e_efuels_store/correlation/index.md) - [Science and technology](https://www.materialinsights.org/energy/e_efuels_store/sg-sci/index.md) - [Engineering and performance](https://www.materialinsights.org/energy/e_efuels_store/sg-eng/index.md) - [Impact and additionality](https://www.materialinsights.org/energy/e_efuels_store/sg-impact/index.md) - [What to track](https://www.materialinsights.org/energy/e_efuels_store/tracking/index.md) - [Relationships](https://www.materialinsights.org/energy/e_efuels_store/links/index.md)