India’s investments in renewable energy and grid upgrades have provided the required assurance for investors to fund long-term hydrogen projects, according to a conference held in Berlin.

India aims to reduce risks and costs by leveraging borrowing in dollars and euros, with export-oriented projects forming a key component of its hydrogen strategy. Germany plays a crucial role in reducing investment costs and enabling the launch of new projects, while India’s domestic market provides the necessary long-term assurances for the sector.

Indian Ambassador Parvathaneni Harish emphasized the need to restructure Europe’s industries and keep markets open. Thyssenkrupp, a German company, holds a strategic advantage with its vertically integrated companies in Germany and India that possess expertise in demand, supply, and infrastructure. Collaboration in both finance and technology between the two countries will provide significant benefits to various German companies, including major ones like Thyssenkrupp.

Greenko Group aims to double its OEM electrolyzer production capacity in collaboration with Belgium’s John Cockerill, according to its founder. The company is confident in the Indian market and production capacity and does not require subsidies to produce green hydrogen, as the cost is already below $3/kg.

India and Germany aim to diversify their investments and import/export strategy. India’s hydrogen companies are actively involved in projects in Oman and Egypt. Meanwhile, Germany’s hydrogen strategy focuses on tenders and auctions with various schemes, and the country sees South America, Australia, Canada, Namibia, and Mauritania as its ideal hydrogen partners.

India’s renewable hydrogen demand will reach 2.85mn t/yr by 2030 if the momentum for green hydrogen continues and planned projects are implemented, according to a report from the US. Fertilizer and export sectors account for nearly 37% and 29% of the total demand, respectively. The other demand drivers are oil refining, making up 600,000 t/yr of total demand, with natural gas blending with 360,000 t/yr of demand under a base case scenario.

India will need 62GW of additional renewable energy capacity, 29GW of electrolyser capacity, and 11mn t/yr of ammonia infrastructure to meet these demand projections, which will require an investment of $56.7bn. Delhi has approved an initial outlay of 197.44bn rupees ($2.4bn) under its national green hydrogen mission, which aims to produce 5mn t/yr of green hydrogen, more than enough to meet the demand.

India and Germany have shown significant collaboration efforts in the hydrogen sector. India’s renewable energy and the hydrogen market provide the necessary assurances to investors for funding long-term hydrogen projects. Meanwhile, with its vast experience in LNG terminals, Germany is developing its hydrogen strategy, focusing on tenders and auctions with various schemes.

Both countries aim to diversify their investments and import/export strategy. 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 speciality. The collaboration between the two countries in both finance and technology will provide significant benefits to various German companies.