German National Hydrogen Strategy - Back to the Future?

This month the German economic ministry produced a first draft of the long-awaited national hydrogen strategy. Germany is a key European country when it comes to hydrogen and the most advanced in Europe in terms of electricity storage via hydrogen, the so called Power-to-Gas technology. The aim of the draft national hydrogen strategy is to boost hydrogen in Germany further and ultimately create a hydrogen economy. The economic minister Peter Altmaier said that Germany wants to become `world leader for hydrogen technologies` and the German science minister Anja Karliczek added that hydrogen is `the oil of tomorrow`. But can the measures described in the new draft hydrogen strategy pave the way? This blog entry is taking a look and explains which are the next steps.

The idea sounds tempting: invest some money and get a decarbonised economy as a result. This at least appears to be the gyst of Germany`s new national hydrogen strategy. A first draft shows that more than two billion Euros in total shall be invested into hydrogen development until 2025. By 2030 a minimum of 20 percent of hydrogen shall be produced from renewable sources and 3 to 5 Gigawatt electrolyser capacity shall be installed to achive this.

In July 2020 the German government is taking over the rotating presidency of the European Union. The national hydrogen strategy now identifies the creation of a European market for hydrogen as a  task that Germany wants to push forward as a priority. The ambitious aims include increased sector coupling and an integrated European hydrogen market. Moreover, a list of Projects of Common Interest (PCIs) for hydrogen shall be elaborated.

The backdrop for these ambitions at EU level is the current work that is being conducted at the European Commission to complete a set of gas-related laws and regulations (so called gas package). This shall be concluded by 2021 at latest.

The core-idea of Germany`s national hydrogen strategy is to use offshore wind energy transport it to the shore and convert it into hydrogen. However, while some plants for that are being constructed in rural communities in the German region of East-Frisia, it will take decades for Germany to be able to produce sufficient amounts of hydrogen from green sources in this manner for its energy intense industry. Part of Germany`s hydrogen strategy thus features a controversial step to conclude `hydrogen agreements` with other, primarily developing, countries for the short-term import of hydrogen. The main target of this effort are Westafrican countries.

There is, however, a problem as hydrogen is often produced from fossil fuels (natural gas, methane) in these countries and can therefore not be considered `green`. The draft of the national hydrogen strategy is taking this into account, explicitly allowing for so called `grey` hydrogen to be included.

The national hydrogen strategy is also part of broader political battle in Germany between those who want to exclude hydrogen from the transport sector and focus on electromobility (primarily the German environmental ministry) and those who see hydrogen as a possibility for heavy duty transportation, like airplanes, trains and big trucks, that are not easy to electrify (primarily the economic ministry). To settle these and other issues the draft national hydrogen strategy is now being considered by the German cabinet / all ministries. It shall be published later this year, before Germany takes over the European Council presidency in July.