India and Germany forge a partnership in the hydrogen sector

India and Germany are forging a partnership in the green hydrogen sector that could have significant implications for the global energy transition. At a recent conference organized by the Embassy of India in Berlin, Thyssenkrupp, and the World Energy Council, panelists highlighted India's position as the world's third-largest producer of grey hydrogen, following Russia and China, as well as its leading status as an importer of ammonia. They also discussed the country's investments in renewable energy and grid upgrades, which are providing necessary assurances for investors to fund long-term hydrogen projects. Indian Ambassador Parvathaneni Harish emphasized the importance of keeping markets open, particularly in light of the COVID-19 pandemic and the recent upheavals in Europe's industries. "India has the largest electricity grid," he noted. "But markets need to remain open." German partners are seen as crucial in reducing investment costs and enabling the launch of new projects, while India's domestic market provides long-term assurances for the sector. "India and Germany have a long-standing relationship in science and technology," said Thyssenkrupp CEO Martina Merz. "We are already cooperating in many areas, and green hydrogen is an excellent opportunity for both countries to contribute to a sustainable future." Thyssenkrupp, with its vertically integrated companies in Germany and India, is particularly well-positioned in the green hydrogen sector. The company has expertise in demand, supply, and infrastructure, and is capable of producing hydrogen through its electrolyzer company, Nucera, as well as operating hydrogen infrastructures via Uhde. The CEO of Uhde, Sami Pelkonen, stated that the company will soon announce a demo plant for hydrogen cracking. Representatives from several German and Indian companies participated in the conference, including MAN Energy&Solutions, RWE Supply & Trading, Greenko Group, Avaada Group, and ACME Group. Greenko Group's founder, Mahesh Kolli, expressed confidence in the Indian market and production capacity. "We don't need subsidies. In India, the cost of green hydrogen without subsidies is already below $3/kg," he said. India and Germany are also looking to diversify their import/export strategy and investments in the green hydrogen sector. Indian companies are already involved in projects in Oman and Egypt, while Germany is developing its hydrogen strategy with a focus on tenders and auctions. The German government sees South America, Australia, Canada, Namibia, and Mauritania as its ideal hydrogen partners. Till Mansmann, innovation commissioner for green hydrogen in the German Ministry of Education, emphasized that India will be a part of Germany's hydrogen national strategy. "I am quite sure, yes," he said. Mansmann also noted that Germany's experience with LNG terminals will inform the forthcoming Hydrogen acceleration law. The conference did not highlight any diverging interests between Germany and India in the hydrogen sector. However, India aims to sell energy carriers and low-carbon products at a premium price, expanding its presence in higher value-added markets, which have historically been a German specialty. Some participants proposed the idea of large German conglomerates establishing or utilizing subsidiaries in India.

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