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26 Jan 2026·Source: The Indian Express
3 min
EconomyEnvironment & EcologyScience & TechnologyNEWS

German Firms Boost India's Green Hydrogen Production

German firms are investing in India's green hydrogen sector, enhancing clean energy production.

German Firms Boost India's Green Hydrogen Production

Photo by Annie Spratt

German companies are playing a crucial role in advancing India's green hydrogen production through technology, strategic investment, and long-term supply commitments. Siemens Energy is providing PEM electrolyzers and its Siemens Xcelerator digital platform to optimize plant operations. Thyssenkrupp Nucera is supplying alkaline electrolyzers for large-scale hydrogen production. BASF has partnered with AM Green B.V. to procure 100,000 tonnes of green ammonia annually from India. Select Energy GmbH is developing a Green Hydrogen Export Hub in Andhra Pradesh with a $1.3 billion investment, targeting production of 180,000 tonnes per year by 2029. SFC Energy AG is advancing hydrogen fuel cell solutions through a partnership with FC TecNrgy.

Key Facts

1.

BASF to procure: 100,000 tonnes green ammonia

2.

Select Energy investment: $1.3 billion

3.

Select Energy target: 180,000 tonnes/year by 2029

UPSC Exam Angles

1.

GS Paper III: Infrastructure, Energy, Investment Models

2.

GS Paper II: International Relations (Technology Transfer)

3.

Economic Survey analysis related to renewable energy and hydrogen

4.

Potential for questions on government schemes and policies related to green hydrogen

Visual Insights

Green Hydrogen Export Hub in Andhra Pradesh

Select Energy GmbH is developing a Green Hydrogen Export Hub in Andhra Pradesh, targeting production of 180,000 tonnes per year by 2029.

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📍Andhra Pradesh
More Information

Background

The concept of hydrogen as a fuel source dates back to the 19th century, with Jules Verne envisioning its use in his novel 'The Mysterious Island' (1874). However, large-scale hydrogen production only became feasible with the development of industrial processes in the 20th century. Initially, hydrogen was primarily produced from fossil fuels, leading to 'grey' and 'blue' hydrogen (with carbon capture).

The push for 'green' hydrogen, produced from renewable energy sources, gained momentum in the 21st century due to growing concerns about climate change and the need for decarbonization. Key milestones include the development of efficient electrolyzers and the establishment of national hydrogen strategies by various countries, including India's National Hydrogen Mission launched in 2021.

Latest Developments

Recent developments in the green hydrogen sector include significant advancements in electrolyzer technology, leading to increased efficiency and reduced costs. Several countries have announced ambitious targets for green hydrogen production and export. For example, the European Union aims to produce 10 million tonnes of renewable hydrogen by 2030.

There's also a growing focus on developing hydrogen infrastructure, including pipelines and refueling stations. The Inflation Reduction Act in the United States (2022) provides substantial tax credits for green hydrogen production, further accelerating its adoption. In India, the government is offering incentives under the National Green Hydrogen Mission to attract investments and promote domestic manufacturing of electrolyzers.

The future outlook involves scaling up production, reducing costs, and integrating green hydrogen into various sectors, including transportation, industry, and power generation.

Frequently Asked Questions

1. What is green hydrogen, and why is it important for India?

Green hydrogen is hydrogen produced using renewable energy sources, like solar or wind, to power the electrolysis of water. It's important for India as it offers a clean energy alternative, reducing reliance on fossil fuels and lowering carbon emissions. This aligns with India's climate goals and enhances energy security.

2. Which German companies are involved in boosting India's green hydrogen production, and what are their roles?

Several German companies are playing key roles. Siemens Energy provides PEM electrolyzers and its Siemens Xcelerator digital platform. Thyssenkrupp Nucera supplies alkaline electrolyzers. BASF is procuring green ammonia, and Select Energy GmbH is developing a Green Hydrogen Export Hub.

3. What are the key facts and figures related to German firms' investment in India's green hydrogen sector that are important for UPSC Prelims?

Key facts include BASF's plan to procure 100,000 tonnes of green ammonia annually, Select Energy GmbH's $1.3 billion investment, and Select Energy's target to produce 180,000 tonnes of green hydrogen per year by 2029. Remember these numbers for potential matching questions.

Exam Tip

Create a table to memorize these figures for quick recall during the exam.

4. Why is the development of green hydrogen important for India's energy security?

Developing green hydrogen enhances India's energy security by reducing dependence on imported fossil fuels. It allows India to utilize its renewable energy resources for hydrogen production, creating a sustainable and self-reliant energy system.

5. What are the potential environmental benefits of using green hydrogen compared to grey or blue hydrogen?

Green hydrogen production has minimal environmental impact as it uses renewable energy and emits only water vapor. Grey hydrogen, produced from fossil fuels, releases significant carbon emissions. Blue hydrogen also uses fossil fuels but incorporates carbon capture, though its effectiveness is debated.

6. What is Select Energy GmbH's Green Hydrogen Export Hub project in Andhra Pradesh, and what is its significance?

Select Energy GmbH is developing a Green Hydrogen Export Hub in Andhra Pradesh with a $1.3 billion investment, targeting production of 180,000 tonnes per year by 2029. This project is significant as it aims to establish India as a major exporter of green hydrogen, boosting the economy and promoting clean energy.

7. How might India's focus on green hydrogen production impact its geopolitical relations?

India's focus on green hydrogen can strengthen its geopolitical relations by positioning it as a reliable supplier of clean energy. This can lead to new partnerships and trade opportunities with countries seeking to decarbonize their economies. India can also play a leading role in international collaborations for green hydrogen technology development and deployment.

8. What are the potential challenges and opportunities for India in scaling up green hydrogen production?

Challenges include the high cost of electrolyzer technology, the need for large-scale renewable energy infrastructure, and water availability. Opportunities lie in attracting foreign investment, developing domestic manufacturing capabilities, and creating a skilled workforce for the green hydrogen sector.

9. What recent developments in electrolyzer technology are relevant to India's green hydrogen ambitions?

Recent developments include increased efficiency and reduced costs of both PEM (Proton Exchange Membrane) and alkaline electrolyzers. These advancements make green hydrogen production more economically viable and support India's goal of achieving large-scale production.

10. How does the partnership between SFC Energy AG and FC TecNrgy contribute to India's green hydrogen ecosystem?

SFC Energy AG's partnership with FC TecNrgy advances hydrogen fuel cell solutions. This is important because fuel cells can use green hydrogen to generate electricity for various applications, such as transportation and stationary power, further reducing carbon emissions.

Practice Questions (MCQs)

1. Consider the following statements regarding Green Hydrogen production: 1. Green hydrogen is produced using electricity generated from renewable sources like solar and wind. 2. Alkaline electrolyzers are generally less expensive but less efficient compared to PEM electrolyzers. 3. The National Green Hydrogen Mission aims to make India a global hub for the production and export of green hydrogen. Which of the statements given above is/are correct?

  • A.1 and 2 only
  • B.2 and 3 only
  • C.1 and 3 only
  • D.1, 2 and 3
Show Answer

Answer: D

Statement 1 is CORRECT: Green hydrogen is indeed produced using renewable energy sources like solar and wind power to power the electrolysis of water. Statement 2 is CORRECT: Alkaline electrolyzers are generally cheaper but less efficient than PEM electrolyzers. PEM electrolyzers offer higher current densities and faster response times. Statement 3 is CORRECT: The National Green Hydrogen Mission, launched in 2021, aims to make India a global hub for green hydrogen production and export, promoting domestic manufacturing and attracting investments.

2. Which of the following statements best describes the role of Siemens Energy in India's green hydrogen production efforts? A) Providing financial assistance to green hydrogen projects. B) Supplying PEM electrolyzers and digital platforms for optimizing plant operations. C) Developing hydrogen fuel cell solutions for transportation. D) Procuring green ammonia from Indian manufacturers.

  • A.Providing financial assistance to green hydrogen projects
  • B.Supplying PEM electrolyzers and digital platforms for optimizing plant operations
  • C.Developing hydrogen fuel cell solutions for transportation
  • D.Procuring green ammonia from Indian manufacturers
Show Answer

Answer: B

Siemens Energy is providing PEM electrolyzers and its Siemens Xcelerator digital platform to optimize plant operations in India's green hydrogen production efforts. While other companies are involved in different aspects, Siemens Energy's primary role is in supplying technology for hydrogen production.

3. Match List I (Companies) with List II (Activities related to Green Hydrogen in India) and select the correct answer using the code given below: List I (Companies) a. Thyssenkrupp Nucera b. BASF c. Select Energy GmbH d. SFC Energy AG List II (Activities) 1. Developing a Green Hydrogen Export Hub in Andhra Pradesh 2. Supplying alkaline electrolyzers for large-scale hydrogen production 3. Advancing hydrogen fuel cell solutions 4. Procuring green ammonia from India Code:

  • A.a-2, b-4, c-1, d-3
  • B.a-4, b-2, c-3, d-1
  • C.a-1, b-3, c-4, d-2
  • D.a-3, b-1, c-2, d-4
Show Answer

Answer: A

The correct matching is: - Thyssenkrupp Nucera (a) is supplying alkaline electrolyzers for large-scale hydrogen production (2). - BASF (b) is procuring green ammonia from India (4). - Select Energy GmbH (c) is developing a Green Hydrogen Export Hub in Andhra Pradesh (1). - SFC Energy AG (d) is advancing hydrogen fuel cell solutions (3).

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