Two people with knowledge of the matter said that the state-owned German utility Uniper was close to a deal for the purchase of green ammonia in India, as part of Chancellor Friedrich Merz’s planned trip to India next week.

Germany is betting heavily on green hydrogen as an alternative fuel to fossil fuels.

Sources did not give any specifics about the size of the ammonia agreement, but only said it was part of a plan to diversify the group's supply base.

Uniper has declined to comment about the agreement. The first report of this was in Handelsblatt, a business newspaper.

Uniper, whose bailout by Berlin was necessary during Europe's energy crises, signed in 2023 a preliminary agreement with India's Greenko Group for the purchase of 250,000 metric tons of green ammonia each year.

Merz will make his first trip to India as chancellor on Sunday. India has grown to be the fourth largest economy in the world and a major trading partner for Berlin. One of the most important potential business deals between the two countries involves a submarine cooperation worth $8?billion between Germany's TKMS, and India's Mazagon dock Shipbuilders (MDL).

The deal has reached a crucial stage. As the partnership, the last remaining consortium, began contract negotiations with India’s procurement authority.

This?initiative will deepen strategic and industry ties between India, Germany and highlight both nations' commitments to technology cooperation and maritime safety," TKMS said in a?statement.

"TKMS, as a technology provider, will support MDL in achieving the project requirements by leveraging its Indian supply chain and industrial base." (Reporting and editing by Kirby Donovan, Shivam Patel added additional reporting).

(source: Reuters)