Strengthening Ties: The India-Germany Green Hydrogen Partnership and Its Future Prospects

India-Germany Emerging Green Hydrogen Partnership
Dr. Renu Mann | 23 June 2025

**Abstract:** India and Germany have maintained a long-standing bilateral relationship since 1947, evolving into a multifaceted strategic partnership since May 2000, with a pronounced focus on climate change and sustainable development. Currently, both nations are collaborating on the “Green Hydrogen Partnership,” which aims to facilitate a clean energy transition and achieve net-zero emissions.

**Introduction**
The partnership between India and Germany recently celebrated 25 years of strategic cooperation, marked by shared values, mutual respect, and collaboration on various global issues including economic growth, counterterrorism, and climate change. The cooperation in Green Hydrogen has emerged as a vital area of collaboration, culminating in the signing of the Indo-German Green Hydrogen Roadmap in October 2024. During his visit to Germany from May 22 to 24, 2025, India’s External Affairs Minister emphasized the significance of this partnership. This paper examines the Indo-German Green Hydrogen Roadmap, highlighting its potential and challenges while tracing the historical development of the energy partnership between the two nations.

**Background**
Since 1947, India and Germany have forged a strong bilateral relationship, officially becoming strategic partners in 2000. Germany is India’s largest trading partner in Europe, and bilateral trade has seen substantial growth. Both nations prioritize energy security, reducing reliance on fossil fuel imports, and meeting the 2015 Paris Agreement’s net-zero emission targets. Their energy cooperation began in 1995 and strengthened with the establishment of the Indo-German Energy Forum (IGEF) in 2006, which aims to enhance political dialogue on energy transition.

**India-Germany Intergovernmental Consultations and the Energy Partnership**
In a significant move to bolster their strategic partnership, India and Germany launched biannual Intergovernmental Consultations (IGC) at the heads of government level in 2011, a unique arrangement that Germany holds only with the US. Following the inaugural IGC, Germany committed €497.5 million to deepen bilateral cooperation in energy, climate mitigation, and sustainable economic development. Subsequent IGC meetings have focused on clean energy cooperation, with India aiming to develop “green energy corridors” supported by Germany, and initiatives to achieve 175 GW of renewable energy by 2022 through technical and financial assistance.

**Green Hydrogen Strategy: India and Germany**
Green Hydrogen has emerged as a crucial clean fuel in the renewable energy sector. Since 2020, India and Germany have intensified their energy cooperation with the launch of Green Hydrogen strategies. Germany’s National Hydrogen Strategy, unveiled in June 2020, allocates over €21.3 billion, including €7 billion to kickstart the hydrogen market and €2 billion for international collaboration. In July 2023, Germany updated its targets for Green Hydrogen technologies, raising the goal for electrolysers from 5 GW to 10 GW by 2030 and increasing projected hydrogen demand to 95-130 TWh.

In August 2022, on the 75th Independence Day, India announced a 25-year roadmap for hydrogen development and launched its National Hydrogen Mission with an initial budget of ₹19,744 crores. The mission aims for self-reliance in energy production by the 100th Independence Day in 2047 and seeks to position India as a global hub for Green Hydrogen production and its derivatives.

To achieve its ambitious climate goals, India’s hydrogen mission is framed around five key elements known as the “Panchamrit” climate action plan, articulated by Prime Minister Narendra Modi at COP-26 in 2021. These goals include reaching 500 GW of non-fossil fuel capacity by 2030, increasing renewable energy share to 50%, reducing carbon emissions by one billion tonnes by 2030, and achieving carbon neutrality by 2070.

**India-Germany Relations: From Green Hydrogen Task Force to Roadmap**
Building on their energy cooperation, India and Germany signed a Joint Declaration of Intent on the “Green and Sustainable Development Partnership” and established the “Indo-German Green Hydrogen Task Force” (GHTF) during the 6th IGC on May 2, 2022. This initiative aims to enhance cooperation in Green Hydrogen’s production, utilization, storage, and distribution, supporting the 2030 United Nations Development Agenda and the Paris Agreement. The Indo-German Energy Forum provides administrative support to the Task Force, which comprises four sub-working groups focusing on various aspects of Green Hydrogen.

Moreover, to stimulate private-sector investment and promote trade, both nations launched a five-year plan and unveiled the “Indo-German Green Hydrogen Roadmap” during the 7th IGC on October 25, 2024. This roadmap supports India’s Green Hydrogen production and export goals, emphasizing the trade of Green Hydrogen and its related products, which are pivotal for clean energy and export opportunities.

**Developments in the Indo-German Green Hydrogen Partnership**
India is currently enhancing its logistics infrastructure for future Green Hydrogen and ammonia exports, negotiating with several European countries, including France, Italy, Austria, and Sweden, while also engaging with Japan, South Korea, and Singapore in Asia. Recently, on May 21, 2025, India and Germany signed a $1.3 billion project to transform Andhra Pradesh’s Mulapeta port into a global hub for Green Hydrogen and clean ammonia exports by 2029, targeting an annual production of 180,000 tonnes of hydrogen.

**Importance of the India-Germany Green Hydrogen Partnership: Prospects and Challenges**
India can leverage Germany’s hydrogen strategy to build a robust hydrogen network. Germany’s approach to the global hydrogen market emphasizes international collaboration, funding research, developing markets, ensuring training, and promoting sustainable production methods. The Indo-German GHTF provides a platform for collaboration in various areas, including Green Hydrogen production capacity, energy transportation, and legal frameworks.

However, challenges persist, including high technology costs, expensive transport of Green Hydrogen, regulatory disparities, infrastructure limitations, and the need for increased investments. The current technology for offshore constructions is still developing, and differing regulations between India and the EU, including the Carbon Border Adjustment Mechanism (CBAM), pose trade challenges.

To address these issues, India and Germany are collaborating on R&D through the GHTF to reduce Green Hydrogen technology costs. Germany’s advanced technology complements India’s low-cost renewable energy, making production more economical. India is also implementing Germany’s “hydrogen valleys” model in states like Gujarat and Kerala, with partnerships between German and Indian companies to establish electrolysis plants and hydrogen supply chains. Germany’s H2Global Initiative aims to mitigate financial risks in international Green Hydrogen trade, while both nations work towards mutual recognition of regulations to standardize safety and operational standards.

**Conclusion**
India’s commitment to reducing its reliance on fossil fuels and transitioning to clean energy has strengthened its relationship with Germany, as evidenced by the 2024 Indo-German Green Hydrogen Roadmap. This cooperation in the energy sector serves as a global model for clean energy partnerships, enhancing bilateral relations and contributing to international efforts to combat climate change. As both countries continue to innovate and invest in green energy, their partnership will remain a cornerstone of their strategic alliance and a beacon of hope for a sustainable future.

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