Germany

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GH2 Country Portal – Germany

Green hydrogen vision

Germany recognizes green hydrogen as the choice for the future of energy transition and aims to secure its energy supply by ramping up production and mass transport of green hydrogen (National Hydrogen Strategy, 2021). Green hydrogen is expected to substantially decarbonize sectors with some of the largest emissions, including heavy industry and aviation. In addition, Germany is planning to replace fossil fuel in the power generation sector partly through the utilization of green hydrogen. Germany is one of the leading markets for exports and a leader in green hydrogen technology. 

Since the country does not have enough renewable energy capacity to produce the fuel in the volumes required, it will need to import green hydrogen in the long run. This will enhance the German energy security regime and create more and more green jobs in the coming decade. Germany is therefore playing a leading role in supporting partner countries with high potential for green hydrogen production through partnerships and investment. 

“Our current short-term needs can dovetail with what is already needed long-term for the transformation to succeed. An LNG terminal that today receives gas can tomorrow be used to import green hydrogen” - Olaf Scholz, Chancellor of the Federal Republic of Germany (2022) 

National strategy

The government launched The National Hydrogen Strategy1 (NWS) in June 2020. The first aim of the strategy was to establish domestic green hydrogen production with an electrolyser capacity target of 10 GW by 2030. Although the strategy was made for the hydrogen fuel in general, it clearly favors green hydrogen. It focuses on partnerships with other countries to co-develop projects in North Sea, Southern Europe and in countries with existing energy partnerships.  

The strategy has a list of measures to grow the market by 2023. The measures in this first phase target production, use and transport of green hydrogen. The second phase begins in 2024 aiming at stabilization and strengthening of the then established markets. 

In May 2021, the government released a list of 62 projects that will receive government funding under the Important Project of Common European Interest (IPCEI) on hydrogen. 

In September 2021, the government released a report on the implementation of the first phase measures. Major progress was made in strengthening the research and innovations around the green hydrogen field and extended support to electrolyser use.  

National strategy

Capacity targets

Germany has the most ambitious production targets in Europe. The National Hydrogen Strategy has set out a green hydrogen production target of 5 GW by 2030, with an additional 5 GW to be built 2035-2040.

Impact targets

Targets for using green hydrogen in key industries have not yet been established.

Policy Spotlight

  • Innovation programme for hydrogen technologies. The Federal Ministry of Transport and Digital Infrastructure (BMVI) has developed an interministerial plan that focuses on continuity for research and development, and addresses the support required for the market activation of first products. The programme (“National Innovation Programme for Fuel Cell and Hydrogen Technology”) supports market activation for products which have reached technical market maturity but are not yet competitive, as a precursor to market ramp-up. 

  • Public funding for green hydrogen projects. In January 2022, the German Federal Ministry of Education and Research announced that three hydrogen lead projects will receive a total funding of up to €740 million. The lead projects conduct research in the areas of offshore hydrogen production (H2-Mare), technologies for hydrogen transport (TransHyDE) and the serial development of electrolysers (H2-Giga).  

  • Contracts for difference: H2 Global is a 10-year German scheme to support investments in green hydrogen for export to Germany. The intention is to create a double auction system through which hydrogen is purchased in non-EU countries at the lowest possible price with 10-year contracts via a competitive process. The contracts are managed via the intermediary HINT.CO. The first deliveries are planned for 2024. 

Financing

  • The Federal Ministry for Economic Affairs and Climate Action announced €7 billion for the national hydrogen strategy in June 2020. 

  • €2 billion has been allocated to international partnerships.  

  • €900 million has been allocated to H2Global. 

  • Under the National Innovation Programme for Fuel Cell and Hydrogen Technology, the Federal Ministry for Digital and Transport (BMVI) is investing €259 million (for R&D) and €285 (for market activation). 

Government GH Lead

  • Federal Ministry for Economic Affairs and Climate Action (BMWK) 

  • Federal Ministry for Economic Cooperation and Development (BMZ)

Comments

There is a strong recognition in Germany that gas needs to quickly be phased out, both for climate and energy security reasons. The government is putting a wide range of ambitious programmes in place to enable a fast transition to be importing and using green hydrogen.