Indian Council of World Affairs

Abstract: India and Germany have shared a long-standing bilateral relationship since 1947 and a multifaceted strategic partnership since May 2000 with a strong emphasis on climate change and sustainable development. Presently, the two sides are working on the “Green Hydrogen Partnership” aimed at clean energy transition and to achieve net-zero emissions.

Introduction

India and Germany maintain a multifaceted partnership, which recently commemorated 25 years of their strategic partnership in May 2025. Over the years, the relationship has been marked by shared values, mutual respect and cooperation on a range of global issues, including economic development, counterterrorism and climate change. The cooperation in Green Hydrogen[i] has emerged as a new significant area of collaboration, culminating in the signing of the Indo-German Green Hydrogen Roadmap in October 2024. During his visit to Germany from 22 to 24 May 2025, India’s External Affairs Minister further reiterated the importance of this partnership.[ii] Against this backdrop, this paper focuses on the Indo-German Green Hydrogen Roadmap, examining its prospects and challenges. It also traces the historical trajectory of Indo-German energy partnership leading up to the initiation of Green Hydrogen cooperation. 

Background

India and Germany have shared a long-standing bilateral relationship since 1947 and a strategic partnership since 2000. The two countries have a strong economic and development partnership, and with Germany being India’s largest trading partner in Europe, the bilateral trade has experienced significant growth over the years. Within the partnership, both sides have prioritised energy security and reducing their dependence on fossil fuel imports and achieving the 2015 Paris Agreement net-zero emission target.[iii] Their energy cooperation began in 1995, which got further strengthened with the launch of the Indo-German Energy Forum (IGEF) in 2006, aimed at strengthening political dialogue around the energy transition between the nations. 

India-Germany Intergovernmental Consultations and the Energy Partnership 

In a big push to the strategic partnership, the two countries launched the biannual Intergovernmental Consultations[iv] (IGC) at the level of Heads of Government in 2011, with the US being the only other country with whom Germany has such an arrangement. Following the IGC meeting in 2011, Germany committed €497.5 million to India to further deepen their bilateral cooperation in the field of energy, climate mitigation and adaptation and sustainable economic development.[v] The 2^nd IGC in May 2013 emphasised cooperation in clean energy, and India aimed to build “green energy corridors” (GEC) with the support of the German government to facilitate the integration of renewable energy into its national electricity grid. During the 3^rd IGC in 2015, both sides welcomed the historic adoption of the 2030 Agenda for Sustainable Development. Germany also proposed to support India’s objective of 175 GW of renewable energy by 2022 through technical and financial assistance to develop comprehensive solar rooftop and green energy corridor projects.[vi] In the 4^th and 5^th IGCs held between 2017 and 2021, both sides aimed at establishing high-technology capabilities in energy transition and were strongly committed towards clean energy transition at various levels by fostering their collaboration in solar energy, sustainable urban development and energy-efficient projects to reduce greenhouse gas emissions. 

Green Hydrogen Strategy: India and Germany 

In a major breakthrough for renewable energy, Green Hydrogen has emerged as a critical new input of clean fuel. In this context, since 2020, India and Germany have also expanded their energy cooperation to the next level and launched the Green Hydrogen Strategy/missions. Germany announced its National Hydrogen Strategy (NHS) in June 2020 that aims to expedite the adoption of Green Hydrogen. The total budget exceeds €21.3 billion, including €7 billion for launching the hydrogen market and €2 billion for international collaboration. In July 2023, Germany revised its strategy to take the global leadership in Green Hydrogen technologies. This time, the target for Green Hydrogen electrolysers was increased from 5 GW to 10 GW by 2030. In addition, the estimated hydrogen demand was raised to 95-130 TWh and acknowledged the requirement to import 1.5 to 3 million tonnes of Green Hydrogen by 2030.[vii]^,[viii]

Building on the precedent set by nations like Japan, France, South Korea, Australia, Norway and Germany, India on its 75^th Independence Day in August 2022 unveiled a 25-year roadmap for hydrogen development and announced the National Hydrogen Mission that aims for “Aatmanirbhar” self-reliance in energy production by the 100^th Independence Day in 2047.[ix] In January 2023, India announced its National Hydrogen Mission with an initial budget of ₹19,744 crores.[x] Through its mission, New Delhi aims to become a global hub for producing, using and exporting Green Hydrogen and its derivatives, like green ammonia and green methanol, which have wide industrial and agricultural applications, going beyond energy.[xi]

In pursuit of sustainable growth, India’s hydrogen mission aims for “Aatmanirbhar” (self-reliance) through clean energy, targeting net-zero emissions via five key elements known as the five Nectar “Panchamrit” climate action plan as articulated by Prime Minister Narendra Modi at COP-26 in 2021. First, the goal is to reach 500 gigawatts (GW) of non-fossil fuel capacity by 2030. Second, the nation seeks to enhance 50 per cent of its energy requirements from renewable energy by 2030. Third, India aims to cut down carbon emissions by one billion tonnes from now to 2030. Fourth, it plans to reduce the carbon intensity of the economy by 45 per cent by 2030, over 2005 levels. Last, the country is committed to achieving carbon neutrality and net-zero emissions by 2070.[xii]

India’s ambitious Green Hydrogen mission goals have definitely played a significant role in boosting Indo-Germany Green Hydrogen initiatives and reflects how Germany’s commitment to Green Hydrogen cooperation with India was accelerated by signing the “Indo-German Green Hydrogen Task Force” in 2022 and the “Indo-German Green Hydrogen Roadmap” in October 2024.

India-Germany Relations: From Green Hydrogen Task Force to Roadmap

Following the positive outcomes in their energy cooperation, India and Germany signed a Joint Declaration of Intent (JDI) on a “Green and Sustainable Development Partnership (GSDP)” and “Indo-German Green Hydrogen Task Force” (GHTF) during the 6^th Intergovernmental Consultations (IGC) on 02 May 2022[xiii] to strengthen cooperation in the production, utilisation, storage and distribution of Green Hydrogen.[xiv]

This cooperation seeks to enhance efforts to meet the 2030 United Nations Development Agenda and the Paris Agreement. The administrative support to the Task Force is provided by the Indo-German Energy Forum (IGEF). Four sub-working groups were constituted under this task force, namely, (i) plant engineering and production of Green Hydrogen; (ii) quality infrastructure and legal framework; (iii) finance, insurance industry and trading; (iv) transportation, storage and consumption.[xv]

Furthermore, to boost private-sector investment and promote the trade and export of Green Hydrogen, India and Germany agreed to launch a new five-year plan. Subsequently, under the umbrella of the GSDP, both sides announced the launch of the “Indo-German Green Hydrogen Roadmap”[xvi] during their 7^th IGC on 25 October 2024. This roadmap supports India’s Green Hydrogen production and export goals. This partnership focuses on trading Green Hydrogen and its related products (green ammonia and methanol), which are crucial for clean energy and creating lucrative export possibilities. Private sector companies and associations were seen as the primary stakeholders in the roadmap’s goals.[xvii]

Developments in Indo-German Green Hydrogen Partnership

Currently, India has been working on expanding its logistics infrastructure for future shipments and to develop and grow its export opportunities for Green Hydrogen and ammonia production. In this context, apart from Germany, India is also negotiating with France and Italy and is also considering Austria and Sweden for export opportunities in Europe. In Asia, negotiations were in progress with Japan, South Korea and Singapore.[xviii]

More recently, on 21 May 2025, India and Germany signed a massive $1.3 billion project that aims at converting the Mulapeta port of Andhra Pradesh into a global hub for Green Hydrogen and clean ammonia exports by 2029.[xix] It aims to produce “180,000 tonnes of hydrogen per year, and later, it will be turned into 1 million tonnes of green ammonia annually, powered by renewable energy through electrolysis using solar and wind sources”.[xx] It also aims to meet international standards by using blockchain technology, fully compliant with German and the European Union (EU) regulations. The project does not only aim at fuelling local industry but is strongly connected with India’s Hydrogen Mission and Germany’s Hydrogen Global initiative.[xxi]

Importance of India-Germany Green Hydrogen Partnership: Prospects and Challenges

To build a strong hydrogen network, India can learn from Germany’s hydrogen strategy and foster international collaborations. Germany’s role in the global hydrogen market has rapidly expanded. Berlin’s strategy for a global hydrogen economy has five key elements. First, the nation prioritises international collaboration to promote hydrogen as a viable and crucial energy solution. Second, emphasis on funding research on hydrogen and sharing the insights gained from new ideas. Third, it fosters the development of global markets and secures funding for global hydrogen production and distribution. Fourth, it dedicates time for training, ensuring a common understanding of hydrogen’s possibilities. Last, it advocates for sustainable hydrogen production and consumption methods.[xxii]

Within this context, the Indo-German GHTF and the partnership have provided New Delhi with a platform to collaborate in the following areas:

1. Green Hydrogen production capacity, energy transportation, storage, and market applications
2. Legal framework for building Green Hydrogen markets 
3. Exchanging best practices in technology, policy, and administrative experience.[xxiii]

While Germany already has a legal structure for Green Hydrogen production, to align with global standards, India requires a comprehensive legal framework governing Green Hydrogen. This also supports building a Green Hydrogen market between New Delhi and its potential suppliers. It also needs to significantly increase investment in Green Hydrogen projects and R&D to achieve its decarbonisation goals. Therefore, the example of Germany highlights how a combination of investment, government support, technological progress, and skilled labour can enable India to meet its decarbonisation targets. The Indo-German Green Hydrogen Task Force looks after these procedures at various levels.[xxiv]

The Green Hydrogen partnership between the two comes with several challenges: i) high technology costs, about $2 per kilogram[xxv] ii) transport of Green Hydrogen, which is extremely costly, iii) regulatory disparities and trade barriers, iv) infrastructure limitations and v) investment.[xxvi] Considering the current scenario, the technology concerning offshore constructions and operations is still in its infancy.[xxvii] The high costs of production are also due to limited production facilities; particularly the cost of electrolysers and storage infrastructure are also impacted by technical and economic considerations.[xxviii] In this regard, Differing regulations between India and the European Union, including Germany, create considerable challenges for trade. 

A prime example is the EU’s Carbon Border Adjustment Mechanism (CBAM), which could significantly drive up the cost of Indian exports to the EU. Additionally, the distinct structures of energy markets in India and the EU could impede the smooth flow of cross-border trade.[xxix]

To overcome these challenges, India and Germany are collaborating on research and development through the Indo-German Green Hydrogen Task Force to lower the cost of Green Hydrogen technologies. Germany possesses advanced technology for electrolysis and hydrogen storage, while India has access to low-cost renewable energy. This combination makes Green Hydrogen production more affordable. India is also learning from Germany’s model of “hydrogen valleys” and is implementing it in its states, such as Gujarat, Andhra Pradesh, and Kerala. Additionally, companies like Siemens from Germany and the National Thermal Power Corporation (NTPC) and the Gas Authority of India Limited (GAIL) from India are partnering to establish electrolysis plants and hydrogen supply chains. To tackle high investment costs, Germany is assisting India through its H2Global Initiative, which mitigates financial risks in international Green Hydrogen trade. Lastly, to address discrepancies in safety standards, certification systems, and energy policies, both nations are striving for mutual recognition of regulations. In this context, they conduct regular meetings through the Indo-German Energy Forum, and Germany also provides training for Indian workers to adhere to European hydrogen safety and operational standards.

Conclusion

It is evident that New Delhi’s ambition for reducing its dependence on fossil fuels and a transition to clean energy sources has encouraged the Indo-German relations to grow, as evidenced by the 2024 Indo-German Green Hydrogen Roadmap.

The India-Germany cooperation in the energy sector serves as a model for global partnership in the field of clean energy, and this has now expanded to include Green Hydrogen. The partnership has not only strengthened their bilateral relations but also contributed to the global efforts in combating climate change and transitioning to a sustainable energy future. As both countries continue to innovate and invest in green energy, their cooperation will remain a cornerstone of their strategic partnership and a beacon of hope for a cleaner, greener world. 

*****

*Dr. Renu Mann, Research Associate, Indian Council of World Affairs, New Delhi.
Disclaimer: Views expressed are personal.

Endnotes

[i] Hydrogen is categorised by various colours, such as white, green, grey, blue, turquoise, and yellow, which indicates its emission footprint. White hydrogen is naturally occurring and present on Earth, whereas grey hydrogen, derived from fossil fuels, produces significant amounts of greenhouse gas emissions. In contrast, green hydrogen is produced via electrolysis, using only renewable energy sources like wind or solar to split water into hydrogen and oxygen through the process of electrolysis, making it a truly emissions-free option.

[ii] Visit of External Affairs Minister to Germany (May 22-24, 2025) (mea.gov.in)

[iii]https://www.bmwk.de/Redaktion/EN/Downloads/I/ind-ger-gh2-roadmap.pdf?__blob=publicationFile&v=2.

[iv]Since May 2000, India and Germany have had a “Strategic Partnership”, which has been further strengthened with the launch of Intergovernmental Consultations (IGC) in 2011 at the level of Heads of Government. The IGC framework allows for a comprehensive review of cooperation and identification of new areas of engagement at the Cabinet level.

[v]Buisness Today, November 08, 2011, https://www.businesstoday.in/latest/economy-politics/story/germany-to-give-4975-mn-euro-to-india-25473-2011-11-08 (Accessed May 5, 2025).

[vi] Federal Ministry for Economic Cooperation and Development, Fostering the energy transition in India, https://www.bmz.de/en/countries/india/core-area-renewable-energy-49170#:~:text=India%20has%20announced%20the%20 (Accessed April 30, 2025).

[vii]The Federal Government, The National Strategy, One-Stop-Shop - Hydrogen - The National Hydrogen Strategy (bmwk.de).

[viii] Indo-German Green Hydrogen Roadmap, October 2024,   https://energyforum.in/fileadmin/india/media_elements/publications/Indo-German_Green_Hydrogen_Roadmap/Indo-German_Green_Hydrogen_Roadmap.pdf (Accessed April 17, 2025).

[ix]India’s Green Future, Built On Hydrogen (fortuneindia.com).

[x]Ibid and https://static.pib.gov.inhttps://icwa.in/WriteReadData/specificdocs/documents/2023/jan/doc2023110150801.pdf.

[xi] *Bureau of Energy Efficiency, Indo German, https://beeindia.gov.in/en/programmesinternational-cooperationbilateral-programmes/indo-german#:~:text=The%20Indo%2DGerman%20Technical%20Co,through%20Tata%20Energy%20Research%20Institute%2C (Accessed April 30, 2025).

[xii] *Ministry of New and Renewable Energy, Indias Green Hydrogen Revolution, May 2024, https://static.pib.gov.inhttps://icwa.in/WriteReadData/specificdocs/documents/2024/may/doc2024510336301.pdf, (Accessed May 05. 2025). 

[xiii] *Joint Declaration of Intent between BMWK and MNRE on Indo-German Green Hydrogen Task Force, May 02, 2022, https://www.mea.gov.in/Portal/LegalTreatiesDoc/DE22B3861.pdf (Accessed April 21, 2025). 

[xiv]Indo-German Energy Forum Subgroup V on Green Hydrogen (formerly known as the Indo-German Green Hydrogen Taskforce), March 06, 2023, https://energyforum.in/highlights/indo-german-green-hydrogen-task-force/ (Accessed on April 17, 2025).

[xv]Ibid.

[xvi]*German Federal Foreign Office, Joint Statement: 7^th India-Germany Inter-Governmental Consultations, Para 40, https://www.auswaertiges-amt.de/en/newsroom/news/2681720-2681720.

[xvii] *PIB, Focus on India, October 26, 2024, https://pib.gov.in/PressReleaseIframePage.aspx?PRID=2068481 (Accessed on April 21, 2025).

[xviii]Priya Jestin, ICIS, October 27, 2023, India developing port infrastructure for green hydrogen exports | ICIS, (Accessed May 07, 2025).

[xix]Entrepreneur, May

[xx]Allen Brown, May 23, 2025, https://www.hydrogenfuelnews.com/india-and-germany-unveil-1-3b-green-hydrogen-export-hub-in-andhra-pradesh/8570969/.

[xxi]Ibid.

[xxii] https://www.sciencedirect.com/science/article/pii/S2211467X24000683.  

[xxiii] Renewable Watch (2021), The German Model: Learnings for India’s transition to a green hydrogen economy - Renewable Watch (Accessed May 02, 2025).  

[xxiv]Ibid.

[xxv]https://www.reuters.com/world/india/indias-green-hydrogen-push-challenges-2023-07-10/.

[xxvi]https://hartek.com/post/5-early-applications-and-challenges-of-green-hydrogen/#:~:text=High%20technology%20cost,of%20scale%20and%20technological%20advances.

[xxvii]https://energycentral.com/c/ec/india-and-germany-forge-green-hydrogen-ties.

[xxviii]Sirajuddin Sikiru and et. Al., (December 2024) Hydrogen Integration in power grids, infrastructure demands and techno-economic assessment: A comprehensive review, https://www.sciencedirect.com/science/article/pii/.

[xxix]https://energycentral.com/c/ec/india-and-germany-forge-green-hydrogen-ties.