18 May 2022

The Hydrogen Economy and the Geopolitics of German-Indian Cooperation

https://www.euractiv.com/section/energy/news/germany-signs-hydrogen-cooperation-agreement-with-india/

Hydrogen is in the news again. This in itself is an interesting development as two major world economies are pledging to work together. As the infrastructure is in the early stages, such agreements are going to generate a boom in shipping, ports, and possibly pipelines. The hydrogen can be transported by being converted and there are various options for this. These new technologies are opening up a new energy economy – and if it develops it's going to change the world and the world order.


The Ukraine War has helped to spur on these agreements and has given the necessary diplomacy a sense of urgency. Pursuing something of its own agenda, Germany is looking for energy sources apart from the United States. India is a good choice. Although officially a US ally like Germany, New Delhi is also less than fully on board with Washington's goals. With the Americans, India opposes China but is also unwilling to simply bow to US demands. Narendra Modi recently angered Washington by continuing to cooperate with Putin's regime in Russia – in purchasing weapons and in economic engagement, the latter of which has helped to give Russia one of the loopholes it needs to avoid the full weight of the Western-imposed sanctions.

What this will all mean for India is hard to say. It almost looks like they're drifting back toward a non-aligned position at least in terms of geopolitics outside of Asia. The US effectively sacrificed its relationship with Pakistan in part to gain India and yet thus far the net result has been a bit of a disappointment. And now with doubts concerning Modi and his relationship with Russia, as well as the situation in Afghanistan – some in the US are once more arguing for rapprochement with Pakistan. But relations with Islamabad have been in decline for a decade and now are at a nadir with the ousting of Imran Khan who blamed the US and accused Washington of meddling.

Germany has also demonstrated a degree of ambiguity in terms of their policy goals and overall geopolitical and energy strategies. Agreeing to purchase US Liquefied Natural Gas, shutting down Nordstream-2, and condemning the Putin invasion of Ukraine, the SDP leadership has also demonstrated a reticence to fully embrace the war propaganda or subject itself to the US. And we know that for some years prior to the present crisis there are have been forces at work in Germany that want to see the nation carve out an independent path and break free of the Atlanticist model. The Ukraine War has made this both easy and difficult. Its leadership is toeing the official line but as the India hydrogen deal makes clear – it's also quietly pursuing an independent agenda. Unwilling to completely subjugate itself to the US, the Scholz government is looking to safe alternatives – ones irksome to Washington but within acceptable boundaries that cannot be formally condemned. While India does not have the historic ties with Washington, they're finding themselves in a similar position – wanting the alliance and its benefits but wishing to avoid subjugation.

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