India’s investments in renewable energy and infrastructure improvements give investors the confidence they need to fund long-term hydrogen projects (Updated Green Hydrogen Plan). With export-oriented projects playing a crucial role in its hydrogen strategy, the nation seeks to lower risks and costs by leveraging financing in dollars and euros.
In other words, German partners are essential in lowering investment costs and facilitating the start of new projects, while India’s domestic market offers the sector the required long-term security. India is the world’s top importer of ammonia and the third-largest producer of grey hydrogen, after China and Russia, according to panelists at a conference hosted by the Indian Embassy in Berlin, Thyssenkrupp, and the World Energy Council.
The pandemic and a year of war in Europe, according to Indian Ambassador Parvathaneni Harish, demonstrated the necessity to rebuild Europe’s businesses. “India has the largest electricity grid,” he added. “But markets must stay open,”
Both financial and technological cooperation between the two nations will be of great benefit to several German businesses, including some very large ones.
“Thyssenkrupp has a competitive edge thanks to its vertically integrated businesses in Germany and India. The group is well-positioned since it knows infrastructure, supply, and demand. In other words, the corporation needs hydrogen, and can create it through Nucera, a company that makes electrolyzers, and already manages hydrogen infrastructures through Uhde.” According to the CEO of Uhde, the business will soon reveal a hydrogen-cracking demonstration plant.
Participating actively in the conference were representatives from the German firm MAN Energy&Solutions and RWE Supply & Trading, as well as those from the Indian firms Greenko Group, Avaada Group, and ACME Group. The long-standing engineering partnership between Germany and India was emphasized by high-profile executives from these companies.
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According to the company’s founder, Greenko Group and John Cockerill of Belgium intends to increase their OEM electrolyzer production capacity within a short period. They exhibit faith in the potential of the Indian market and industry.
“We don’t require aid. Mahesh Kolli, the founder of Greenko Group, claimed that the price of green hydrogen in India is already less than USD 3 per kilogram without subsidies.
Both Germany and India want to diversify their sources of funding and import/export operations. Projects in Egypt and Oman are being actively worked on by Indian hydrogen firms. The German government is currently building its hydrogen strategy, concentrating on auctions and tenders with different schemes. Germany’s ideal hydrogen partners at the moment are South America, Australia, Canada, Namibia, and Mauritania.
“India will be included in Germany’s national hydrogen policy. Yes, I am certain about it,” said Till Mansmann, the German Ministry of Education’s innovation commissioner for green hydrogen.
Mansmann, a trained physicist, drew attention to Germany’s protracted investment decision-making delays but noted that the nation’s experience with LNG terminals will influence the upcoming Hydrogen acceleration law.
The panelists stressed that top German government officials actively travel to develop this policy, recommending that one look at the travels of Chancellor Olaf Scholz and Minister for Economic Affairs Robert Habeck understand the country’s future hydrogen strategy.
In 2030, Mansmann predicted that 70% of our hydrogen needs would be imported, and nothing would change until 2045.
The meeting did not draw attention to any differences in India’s and Germany’s hydrogen industry ambitions. However, India wants to increase its position in higher value-added sectors, which have historically been a German specialty, by selling energy transporters and low-carbon goods at a premium price. A few delegates also suggested that big German conglomerates establish or use subsidiaries in India.
Source: PV India
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