Hydrogen from India: New Perspectives for Companies through German-Indian H2 Cooperation

German Chancellor Olaf Scholz and Indian Prime Minister Narendra Modi at the seventh German-Indian government consultations in New Delhi

The German-Indian hydrogen partnership is reaching a new dimension: During the 7th German-Indian Government Consultations in October 2024 in New Delhi, both states agreed on an "Indo-German Green Hydrogen Roadmap." The cooperation comes at a critical time: According to the National Hydrogen Strategy, Germany needs between 95 and 130 TWh of hydrogen per year by 2030 – more than three million tons. 50 to 70 percent of this must be imported. India plans to build an annual production capacity of five million tons of hydrogen in the same period. An H2 partnership is therefore obvious. But how is the Indian hydrogen economy developing, what transport routes exist for hydrogen from India, and which German H2 companies are already active there? Here's an overview.

NTPC still relies predominantly on fossil energy today: The Rihand Thermal Power Station has a capacity of 3 GW

With the "National Green Hydrogen Mission" adopted in early 2023, India is pursuing two goals: The country wants to become energy independent by 2047 and achieve climate neutrality by 2070. The strategy envisions investments of 44 billion US dollars by 2030. India has ideal conditions for renewable energy generation (RE) and thus the cost-effective production of green hydrogen: The Ministry of New and Renewable Energy (MNRE) estimates the RE potential at 245 GW.

Remarkable is India's price target: A DECHEMA study published in February shows that the country aims for the lowest hydrogen price worldwide at 0.60 euros per kilogram – significantly below the target prices of other countries such as Korea at 4.50 euros per kilogram. This aggressive pricing strategy could potentially make India the world's most competitive hydrogen producer.

Concrete Large-Scale Projects as Development Drivers

The implementation of India's hydrogen strategy is manifesting in numerous large-scale projects. A complete list of the country's hydrogen goals can be found on the Indian Ministry of Energy's website (https://mnre.gov.in/national-green-hydrogen-mission/). Here are some examples of recent projects.

The state-owned power utility NTPC Limited announced in March 2024 the development of a "Green Hydrogen Hub" near the coastal town of Pudimadaka in southeast India. On a 485-hectare site, a 4 GW hydrogen facility is being built with a planned annual production of over 400,000 tons of hydrogen for export in the form of methanol or ammonia. The project goes far beyond mere H2 production: The site will also manufacture electrolyzers and fuel cells, and an ecosystem of startups and testing facilities will be established. This planned integration of production, processing, and research is intended to become a blueprint for further H2 clusters in India.

Federal Minister of Economics Robert Habeck was also present at the SFC Energy factory opening in New Delhi (Source: SFC Energy)

here are also initial projects for domestic H2 use. As in Europe, the steel industry, as one of the largest potential hydrogen consumers, is at the forefront. According to the industry portal Hydrogen Insight, the RE company JSW Energy is building a hydrogen facility with an annual capacity of 3,800 tons. The hydrogen will be used in the Vijayanagar steel plant, the world's sixth-largest steel plant with an annual capacity of 12 million tons. If green hydrogen were to be used here, it would also have a major impact on the decarbonization of Indian industry: The steel industry alone is responsible for annual CO2 emissions of 320 million tons. Without transformation, these emissions could rise to 900 million tons by 2050.

Transport Concepts for German-Indian Hydrogen Trade

Production and use of hydrogen are gradually being ramped up in India. For the energy carrier to be profitably exported, transport routes are a decisive factor – both for the Indian hydrogen market and for a German-Indian H2 partnership. As hydrogen expert Prof. Dr. Michael Sterner emphasized in an interview with the industry portal H2-News.de, hydrogen derivatives ammonia and methanol have proven particularly successful for international long-distance transport. The reason: The derivatives can be transported using both existing road and pipeline infrastructure as well as by ship, enabling faster market ramp-up than building new transport routes.

A first concrete example of this transport strategy is an agreement reached in September 2024 between RWE Supply & Trading and Indian AM Green Ammonia B.V. Starting in 2027, up to 250,000 tons of green ammonia annually will be delivered from the Indian production facilities in Kakinada and Tuticorin to Germany. Particularly important: According to the companies, the ammonia will meet the strict EU standards for renewable fuels of non-biological origin (RFNBO). The facility in Kakinada has already been pre-certified for RFNBO compliance, with the process ongoing for other facilities.

Thyssenkrupp Nucera provides alkaline electrolyzers for some of the world's largest hydrogen projects (Source: Thyssenkrupp Nucera)

German Companies as Pioneers in the Indian Market

The German-Indian hydrogen partnership has already motivated several German companies to invest in India. Two pioneers demonstrate the concrete business potential:

The Dortmund-based electrolyzer manufacturer Thyssenkrupp Nucera opened a strategically favorable location in northeast Mumbai, one of Asia's most important ports, in October 2023. The company plans to increase the initial workforce of 30 employees to over 80 within three years. Thyssenkrupp Nucera benefits from its strong market position: In chloralkali electrolysis, the company already holds a market share of over 70% in India. An interesting aspect is the absence of skilled labor shortage in India. During the plant opening, Nucera CFO Arno Pfannschmidt emphasized the high importance of access to qualified professionals, which is available in India: "The widespread good education in India gives us even better access to talents and experienced electrolysis specialists. This is also an important factor in view of the increasing shortage of skilled workers."

Even more extensive is the engagement of SFC Energy AG. In just six months, the company from Brunnthal, Bavaria, built a modern manufacturing facility for hydrogen and methanol fuel cells in New Delhi. The 3,500 m² plant started in July 2023 with 100 employees and an investment volume of 10 million euros. The expected annual turnover of 100 million euros underscores the economic potential. SFC has already secured large orders worth 33 million euros for energy supply to the Indian armed forces. Particularly promising are the economic prospects in the field of emergency power supply: The Indian government plans to replace diesel generators in critical infrastructure such as telecommunications and military with fuel cells. Given the not yet ubiquitous power grid, stationary fuel cells powered by hydrogen have good prospects in the Indian market.

The Beginning of a Long H2 Friendship?

The recently agreed German-Indian roadmap creates a framework to stimulate further investments. A permanent working group in the Indo-German Energy Forum (IGEF) will coordinate information exchange going forward. It focuses on three core areas:

Optimization of production and trade framework conditions

Support in decarbonizing hard-to-transform sectors

Development of efficient export and utilization concepts for green hydrogen

For German companies, the Indian hydrogen market offers several strategic advantages: First, early engagement secures access to cost-effective green hydrogen, which is crucial given Germany's import dependence of 50-70%. The Federal Government's hydrogen import strategy published in July also names India as a potential source for extensive H2 deliveries. Second, German companies are tapping into one of the world's most dynamic growth markets, which specifically promotes foreign investment through the "Make in India" initiative. Third, they benefit from an excellent skilled workforce base by international standards and low production costs.

The German companies active in India today show that these potentials can be realized. Their experiences offer valuable guidance for other companies considering market entry. The availability of affordable green hydrogen is increasingly becoming a decisive location factor, especially for energy- and emission-intensive industries. The German-Indian partnership could thus prove to be a driver of hydrogen ramp-up and thereby industrial transformation in Germany. The already initiated projects, supply agreements, and political frameworks thus mark the beginning of a promising development.

Learn more about the industrial use of hydrogen from April 13-17, 2026, at the world's leading trade fair for the cable and tube industry, wire & Tube in Düsseldorf. Additionally, wire & Tube India will take place from November 27-29 in Mumbai.

Sources

Bundesministerium für Wirtschaft und Klimaschutz, 2024

Indian Ministry of Energy, 2024

Dechema, 2024

NTPC Limited, 2024

Hydrogen Insight, 2023

SFC Energy, 2023

RWE, 2024

Thyssenkrupp Nucera, 2023

H2News interview with Prof. Michael Sterner: https://h2-news.de/h2-on-air/h2-on-air-folge-4-die-wasserstoff-importstrategie/