India and Germany have signed multiple agreements focused on sustainable development, which would see India receiving up to $10.5 billion in assistance through to 2030 as a means of boosting the use of clean-energy resources.
The deals were agreed this week during Indian Prime Minister Narendra Modi’s visit to Germany and involve issues ranging from technical assistance to increasing the use of renewable energy and hydrogen and reducing greenhouse gas emissions in the South Asian nation.
Leading Indian state-owned players including Indian Oil Corporation (IOC) and Bharat Petroleum Corporation (BPCL) have already unveiled ambitious plans to invest in renewables and hydrogen and both stand to benefit from the recent agreement with Germany, industry sources said.
The Indian government is yet to flesh out the details of the agreement with Germany, which will also involve companies from the electricity and renewables sector, Upstream understands.
Modi said in a social media post that “the 6th India-Germany Inter-Governmental consultations were productive”.
“Officials from Germany and India discussed ways to boost co-operation in areas like sustainable development, mobility, economic growth and more,” he said.
The partnership between the two countries envisages a government-to-government approach to co-operation on sustainable-development goals and climate action, under which Germany has agreed to make an advance commitment of €10 billion ($10.5 billion) of new and additional development assistance up until 2030, according to India’s Ministry of External Affairs.
Ambitious renewables target
India has an ambitious target for ramping up its “non-fossil fuel energy capacity” to 500 gigawatts by 2030. The nation will also look to fulfil 50% of its energy requirements from renewable energy sources by 2030, up from a previous target of 40%.
Modi announced an Indian target of reaching net-zero emissions by 2070 during the COP26 climate change conference in Glasgow in October last year.
Modi has also pledged that India will reduce its carbon emissions by 1 billion tonnes by 2030 and cut the carbon intensity of its economy by 45%.
IOC, BPCL and private sector conglomerates Reliance Industries and the Adani group have already announced billions of dollars worth of investments in hydrogen and renewable energy projects.
BPCL earlier this year unveiled an ambitious plan to invest up to 250 billion Indian rupees ($3.36 billion) in building a diversified renewables portfolio that will include solar, wind, small hydro and biomass.
A senior executive from BPCL has said the company aims for its renewable-energy portfolio to reach 1 GW by 2025, with 10 GW capacity being targeted for 2040 by the latest.
Green hydrogen plant
IOC said last year it is set to build India’s first green hydrogen plant in the state of Uttar Pradesh, in the nation’s north.
The company had stated that it would use a wind project in Rajasthan to provide electricity to its Mathura refinery and produce green hydrogen through electrolysis — the process of splitting water into hydrogen and oxygen.
Indian engineering giant Larsen & Toubro (L&T), IOC and renewables major ReNew Power have formed a joint venture to develop green hydrogen projects across the country.
The trio signed a binding term sheet for the formation of the joint venture, aimed at developing the nascent green hydrogen sector in India.
IOC and L&T also signed a separate deal to form a joint venture to manufacture and sell electrolysers to be used in the production of green hydrogen.