Germany's national hydrogen strategy will focus on 'green' hydrogen. Photo: Federal Ministry for Economic Affairs and Energy

A European country has adopted a national hydrogen strategy with 'green' sustainable hydrogen prioritised for investment to aid decarbonisation.

Germany's government acknowledges that "only hydrogen produced on the basis of renewable energies ('green' hydrogen) is sustainable in the long term" and aims to creation of 10GW of domestic electrolysis capacity for green hydrogen made in Germany by 2040 at the latest.

However, the German government assumes that a global and European hydrogen market will develop over the next ten years and CO2-neutral hydrogen will therefore also play a role in Germany. If available, it will also be used on a transitional basis, said the Federal Ministry for Economic Affairs and Energy.

Making hydrogen competitive

Germany wants to make hydrogen competitive by pushing cost reductions with a fast international market ramp-up, which would enable technological progress and scaling effects

The country will focus the use of hydrogen on shipping, aviation, heavy goods transport and industry (starting with the steel and chemical industries). These sectors will be the first to benefit from market incentives to make green hydrogen competitive (such as tenders for electrolyser capabilities and quotas).

The majority of the green hydrogen demand will have to be imported. The strategy specifically names EU countries around the North and Baltic Sea and in Southern Europe as potential suppliers but also energy partnerships with developing countries.

In addition to a €130bn stimulus package to further the country's energy transition, a further €7bn will be made available for the market ramp-up of hydrogen technologies in Germany and a further €2bn for international partnerships.

By Rebecca Jeffrey