January 12, 2026 [Reuters]- State-owned German utility Uniper is nearing a deal to buy green ammonia from India as part of Chancellor Friedrich Merz’s planned visit to the country next week, two people familiar with the matter said.

Green ammonia, made with renewable electricity, can be used to make the green hydrogen Germany is partly betting on as an alternative to fossil fuels.

The sources did not provide any details about the volume of the planned ammonia agreement, only saying it was in line with further diversifying the group’s supply base.

Uniper declined to comment on the agreement, which was first reported by business newspaper Handelsblatt.

Uniper, which was bailed out by Berlin during Europe’s energy crisis, in 2023 signed a preliminary agreement with India’s Greenko Group to purchase 250,000 metric tons of green ammonia per year.

The trip to India on Sunday will be Merz’s first as chancellor to what has become the world’s fourth-biggest economy and an increasingly important trading partner for Berlin.

Among the biggest potential business deals for the two countries is a roughly $8 billion submarine cooperation between Germany’s TKMS and India’s Mazagon Dock Shipbuilders (MDL).

The deal, which covers the construction of six submarines – and an option for an additional three – has reached a critical stage as the partnership, the only remaining consortium in the process, recently started contract negotiations with India’s procurement authority.

“This initiative is expected to deepen strategic and industrial ties between India and Germany, highlighting both nations’ commitment to technological cooperation and maritime security,” TKMS said in a statement.

“TKMS as the technology provider will be supporting MDL to achieve the project requirements, leveraging its supply chain and the industrial base in India.”