Germany expresses interest in buying green hydrogen from India
Germany is open to purchasing green hydrogen from India and intends to deepen bilateral engagement in renewable energy, according to Georg Enzweiler, Chargé d'Affaires of the German Mission in India.
Speaking with The Hindu on the sidelines of the 11th edition of the 'Young Voices for Sustainable Development' summit, Mr. Enzweiler said India possesses the resources needed to produce green hydrogen at scale. "India has the resources to produce green hydrogen which we could buy to cover our energy needs back home and not be dependent on procuring fossil fuels," he explained.
He highlighted that a renewable energy partnership between the two countries also presents significant business opportunities. Pointing to India's "fantastic resources" for solar and wind energy, Mr. Enzweiler described the country as having a "dynamic, forward-looking and innovative business framework." He added that Germany would contribute its technological and industrial expertise as part of the collaboration.
"India can then look to export the energy produced, for which it could get good euros. That could make it an attractive business model as well," he stated.
Responding to a question on whether German technology could be indigenised in the long run, given the Indian government's push for self-reliance, Mr. Enzweiler affirmed that it would be viable, especially with the European Union-India Free Trade Agreement (FTA) in sight.
"We expect a big push on energy and renewables but also on the wider economy for both Europe and India [with the FTA]," he said.
On the FTA timeline, Mr. Enzweiler expressed hope that the agreement would come into force by early 2027, as widely predicted. India and the EU concluded negotiations on the FTA in late January, with tariffs on 99.5% of Indian exports expected to drop to zero once it takes effect.
Elaborating on sectors of interest for Germany, Mr. Enzweiler identified the automobile, machinery and chemical industries as key. He also noted the importance of small and medium enterprises (SMEs), which form the backbone of the German economy. "For them, it will be much easier if majority of the tariffs are gone on both sides," he said. The FTA would also offer Indian companies enhanced opportunities to invest, trade and export to Europe.
Regarding the Carbon Border Adjustment Mechanism (CBAM), Mr. Enzweiler said the European Union has provided a transition period and €500 million in financial support to help India reduce greenhouse gas emissions. He acknowledged that applying the mechanism exclusively to European countries would create an unfair playing field and that the EU is working to address concerns.
"There is a continuing dialogue to mediate the problems that could come up for Indian companies who will be investing in Europe," he assured, adding, "I think that [the overall CBAM dynamics] is on a good track."
