India Emerging as Strategic Hydrogen Partner for Germany

The long-term offtake agreement between Uniper and AM Green for up to 500,000 t of green ammonia per year marks the first tangible large-scale corridor between India and Europe. In parallel, Indian energy and steel investors are exploring Duisburger Hafen as a potential gateway for green molecules and low-carbon steel inputs. This reflects a broader industrial logic: energy-intensive primary production takes place where renewables are abundant and cheap, while higher-value processing remains in industrial regions such as North Rhine-Westphalia (NRW), Germany.

India’s current momentum is not incidental but the result of a tightly aligned industrial and export strategy. Under the National Green Hydrogen Mission, the government targets at least 5 M t of annual green hydrogen production capacity by 2030 and explicitly aims to position India as a global export hub for hydrogen derivatives, particularly ammonia. Price competitiveness is central to this ambition. Indian producers are reportedly offering green ammonia at around USD 600/t, narrowing the gap to grey ammonia to a relatively small premium.

This cost position is supported by targeted policy measures, most notably the waiver of interstate transmission charges for renewable electricity. This allows producers to source clean power from renewable-rich states at significantly lower cost and can reduce ammonia production costs by roughly USD 200/t. Combined with low-cost solar and wind resources, this creates a structurally competitive export product.

One key development to monitor is the discussion between India and the European Union (EU) on the recognition of Indian hydrogen under the RFNBO framework. While the major projects mentioned above are already designed to comply with EU standards such as RED III, India is advocating for the EU to recognize its national power grid as a single bidding zone. Such a classification would significantly ease compliance requirements and enable a larger number of hydrogen projects to be structured explicitly for export to Europe.

Although it currently appears unlikely that the EU will take this step, the scheduled review of the RFNBO rules later this year could lead to adjustments or greater flexibility. Any regulatory relaxation would provide additional momentum for India’s ambition to position itself as a key supplier of hydrogen and its derivatives to the European market.

This evolving partnership could also open opportunities for start-ups, SMEs and corporates in North Rhine-Westphalia. The integration of Indian supply chains can spur new business models across logistics, storage and processing. By acting early, NRW’s industrial base can not only secure access to competitively priced hydrogen derivatives but also position itself strongly in terms of green value chains.

(Source: H2UB)