Germany has taken steps to tap India’s potential as a green hydrogen supplier by agreeing a wide-ranging cooperation deal with the south Asian country covering production, transport and consumption of the clean fuel.

The pact with India, signed by the governments on 2 May, comes as Germany courts several potential exporters of clean hydrogen. It expects to rely on imports for about half of its projected hydrogen demand as the war in Ukraine brings a new urgency to its search for suppliers given its need to curb its dependence of Russian gas.

India has ambitions to become a major exporter of green hydrogen using its renewable power resources.

“As announced by Prime Minister Modi last year, India is aiming to become a global hub for green hydrogen and to become a major exporter of green hydrogen. These efforts by India are of great interest to the German economy,” says Germany’s federal economics and climate minister, Robert Habeck.

5mn t/yr – India’s 2030 green hydrogen production target

The cooperation agreement includes the development of a roadmap with specific joint measures to support the market ramp-up of green hydrogen.

“Future cooperation will focus on promoting public and private investments in the production, transport and consumption of green hydrogen and its derivatives,” it says.

German companies could develop electrolysers for deployment in India as well as providing the technologies for the wider hydrogen value chain, including the production of synthetic fuels such as e-kerosene.

Indian prime minister Narendra Modi announced the nation’s hydrogen mission in 2021, allocating INR250mn ($3.4mn) a year for research and development. The country set out a raft of new policies earlier in 2022 designed to drive investment in green hydrogen projects as it targets production of 5mn t/yr by 2030.

Hydrogen diplomacy

Germany has been forging ties with potential hydrogen suppliers for several months through a policy of so-called “hydrogen diplomacy”.

The government is looking to secure imports via its H2Global trade scheme, which supports green hydrogen projects outside the EU by offering them subsidised offtake deals. The €900mn ($1.02bn) scheme was launched by the previous government. The current coalition, which took office late last year, has pledged to develop it further.

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Author: Stuart Penson