Germany aims to accelerate hydrogen market ramp-up with strategy update

German energy industry association BDEW welcomed the update, calling it a development in the right direction, but lamented that there is no final alignment between funding mechanisms, general framework conditions and market design. “Energy companies are willing to invest in a hydrogen economy, but they need a clear framework, both at national and European level,” BDEW head Kerstin Andreae said, adding that the government should present its hydrogen import strategy promptly.

The German renewable energy federation BEE criticised the strategy for focusing on hydrogen imports by ship instead of domestic production. “Due to its upstream chain emissions, blue hydrogen is not only much more harmful to the climate than green hydrogen, but also more expensive,” BEE head Simone Peter said, adding that Germany is in danger of falling into new import dependencies.

Germany’s industry association BDI largely welcomed the update, saying the revision was overdue in view of the developments on the energy markets. The fact that blue, turquoise and orange hydrogen are explicitly considered is especially positive, BDI head Holger Lösch said. “Until sufficient green hydrogen is available, the industry will have to rely on alternatives.” He called for measures to be implemented quickly and for the government to finalise its planned hydrogen import strategy.

While environmental associations Climate-Alliance Germany and Friends of the Earth Germany (BUND) welcomed the move, they were critical of the use of blue hydrogen and called for improvements in the areas where it will be used, as well as for more civil society participation and clearer sustainability rules. “Two other important aspects are completely missing from the strategy so far: efficiency and the reduction of energy demand,” Verena Graichen, deputy chair of BUND and member of the National Hydrogen Council, said.

The ramp-up of Germany’s hydrogen economy should fall in line with demand, and the country’s economically strong south cannot be disadvantaged, Bavarian business association vbw said. “In addition to the connection to the hydrogen grid from the north, Bavaria also needs a southern pipeline connection from Italy,” vbw head Bertram Brossardt said.