Germany ramps up hydrogen ambition

On its path to climate neutrality by 2045, Germany is now targeting 10GW of electrolysis capacity by 2030 – up from 5GW – in an updated version of its National Hydrogen Strategy (NWS).

The NWS was first revealed back in June 2020, with the Federal Government of Germany having sought to establish a coherent framework for the future production, transport and use of both hydrogen and its derivatives. However, Russia’s invasion of Ukraine and the subsequent ramifications for global energy markets, has shown the risks of being overly reliant on energy imports from individual countries.

At the same time, it has meant the initial goals set by the NWS – namely, having a high level of security of supply through competitive intra-European production of hydrogen, along with diversification and security of international imports – have only grown in importance. By updating it, the aim is to set important building blocks in place for the security and viability of Germany and send an important industrial policy signal.

It looks both at actions for the short-term (2023), medium-term (2024-25) and longer-term (2030) in a bid to drive a significant acceleration in market ramp-up of hydrogen, its derivatives and hydrogen application technologies.

Alongside the 10GW of electrolysis capacity, Germany expects the rest of demand – which could be as much 130TWh by 2030 – to be met by imports, with a separate import strategy being developed. Through this, the aim will be to show how Germany is eager to enter into global partnerships, enable reliable supply chains and establish sustainable standards, while also make itself available as a technology partner.

It is also aiming to develop efficient hydrogen infrastructure, targeting a hydrogen start-up network spanning more than 1,800km, made up of converted and newly built pipelines by 2027-28 in Germany. At the same time, it wants to see 4,500km added across Europe through the European Hydrogen Backbone. All major generation, import and storage centres will be connected to the relevant customers by 2030.

In terms of how hydrogen usage will ramp up in Germany, by 2030 it wants to see hydrogen and its derivatives widely used in industrial applications and heavy commercial vehicles, with increasing use in aviation and shipping. In the electricity sector, hydrogen will be able to contribute to energy security as a variable and system-friendly stabiliser or by providing flexible loads through gas power plants or electrolysers.

It is also looking for Germany to become a leading provider of hydrogen technologies by 2030, while also pledging to create suitable framework conditions to support market ramp-up. This will include efficient planning and approval procedures, uniform standards and certification systems, and administration adequately equipped and coordinated at all levels. The NWS will continue being developed in the years ahead, with safe, sustainable, climate-neutral hydrogen considered key to Germany’s climate neutrality ambitions.

Featured Image by Christian Wiediger on Unsplash

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