Germany

Fortschreibung der Nationalen Wasserstoffstrategie

The update of the German hydrogen strategy is framed by the goal to achieve carbon neutrality by 2045, presenting four fields of action with short-, medium- and long-term measures. The fields of action are to ensure sufficient quantities of hydrogen, expand hydrogen infrastructure, develop hydrogen applications and create good framework conditions. The update is technology neutral, but foresees greatest use of hydrogen in industry, mobility and energy sectors. In contrast to the previous strategy, no specific financial commitments are made. While the primary focus of the strategy is on green hydrogen, where the goal is to ensure a reliable supply of green hydrogen in the long-term, other forms of hydrogen will be used until sufficient quantities of hydrogen are available. Direct financial support will be limited to green hydrogen production.

PRODUCTION

The strategy reinstates the updated target for electrolyser capacity 2030 of 10 GW. For this, both land and offshore electrolysis are considered. Funding programs will be reviewed, so that they are more interlinked and less bureaucratic in order to expand domestic production of green hydrogen. Additional measures include the revision of planning and approval procedures with a view to reduce unnecessary bureaucracy in order to expand renewable energy sources and electrolysers.

Significant emphasis is put on system coupling, where “system friendly electrolysis” can be an important flexibility option for decarbonisation and to limit the need for expansion of the electricity grid. The requirements for system usefulness of electrolysers are being currently developed. In relation to environmental impact of electrolysis, assessments will be made to minimise the effects on water ecology and avoid competition with other water uses. The government will also work on European instruments to promote the development of the hydrogen market such as the European Hydrogen Bank and joint purchasing platform. The development of European funding instruments will be promoted.

TRANSMISSION AND DISTRIBUTION

By 2030, the strategy aims to have 1,800 km of hydrogen pipelines deployed, either new or repurposed. Possible finance models for this are being examined to avoid initial users being overburdened with grid fees for the development of the network. The government is focused on the development of interconnections with neighbouring countries and the development of their national hydrogen networks, to enable the European Hydrogen Backbone by 2030. All new LNG terminals ought to be hydrogen or derivatives-ready. The hydrogen storage potential is to be further developed.

Significant emphasis is put on guaranteeing sufficient supply of hydrogen to meet the needs of the energy transition, without adding additional greenhouse gas emissions or bottlenecks. Therefore, the strategy emphasises the need for system-integrated approach, where electrolysers are built and operated in a system-friendly way. This includes close sectoral coordination between natural gas and electricity systems based on consistent planning, proper incentives and willingness to invest in relocation facilities and construction of new ones, as well as parallel operation of gas and hydrogen networks.

TRADE

The strategy foresees that the greater part of national demand will have to be covered by importing hydrogen and derivatives. It is expected that until 2030 most of the imports will be ship-based in the form of ammonia. Imports of green methane, synthetic methanol, LOHC and liquid hydrogen can play a role in the medium- to long-term. After 2030 pipeline based green hydrogen will be imported from Europe and neighbouring regions. The development of imports will follow the principle of minimizing risk through diversification.

EDUCATION, RESEARCH AND DEVELOPMENT

Research and development will be supported in the production, transport and uses of hydrogen. Specific areas of R&D focus are hydrogen applications in aviation, maritime, infrastructure, ammonia crackers, reduction of critical raw materials. With regards to infrastructure, research will focus on better understanding of safety hazards. In relation to hydrogen production, the goal is to move from research projects to demonstration projects. The opportunities for naturally occurring hydrogen will also be explored. Germany will also establish R&D partnership with US, Taiwan, African countries and Australia. 

CROSS-CUTTING

The focus of the strategy is to create suitable framework conditions for the ramp-up of the hydrogen market through coherent legal requirements at the national, European and possibly international levels. Specific areas to be improved concern planning, approval procedures, standards and certification, as well as adequately equipped and coordinated administration. Specifically, under the Hydrogen Acceleration Act licensing procedures will be shortened, hydrogen refuelling station procedures will be shortened and digitalised. On standardisation, the government will work on definition of standards in international forums (G7, G20, IEA, IRENA) and the mutual recognition of standards. Furthermore, in the ramp up of the hydrogen sector, attention will be paid on sustainability criteria for hydrogen relating to water use, biodiversity, human rights and land-use. Furthermore, a classification of sustainable carbon sources will be developed, as well as criteria for handling CO2 captured during blue hydrogen production.

The update to the hydrogen strategy will be complemented in multiple policy instruments that are being prepared, namely; Hydrogen Import Strategy, Carbon Management Strategy, National Ports strategy, System Integration Strategy, Master plan for hydrogen and fuel cells in transport, National Action Plan for Climate Friendly Shipping and Hydrogen Technology Innovation Roadmap.

MANUFACTURING

In relation to manufacturing, the goal of strategy is for Germany to become a leader in the supply of hydrogen technologies by 2030 as national companies cover significant parts of the value chain. In line with this the H2Giga initiative will be further developed focusing on production of electrolyser technologies and research projects to build the innovation pipeline and increase the efficiency of electrolysers.

END-USES

No restrictions on the end-uses of hydrogen are to be made, however as long as hydrogen is scarce and prices are high, hydrogen will be used in applications where there are no alternatives to decarbonise. To avoid price spikes, governmental action will be focused in those sectors in particular – industry, heavy-duty mobility and energy sector.

Mobility

Priorities in mobility are aviation, shipping and heavy-duty mobility. Infrastructure for refuelling will be deployed for HDV traffic. Port infrastructure for hydrogen shipping will also be developed. Existing funding programmes for HRS, renewable fuels and H2 derivatives will be continued. Research and development and acceleration of production of hydrogen for transport will be also stimulated. The government will work on developing international standards for transport applications of hydrogen. A Hydrogen Innovation and Technology Center will be created to serve as testing environment.

Industry

The main applications for hydrogen foreseen are for the replacement of fossil fuels used in high heat, specifically in chemical industry and steel.

Energy

In line with the System Development Strategy, the requirements for system compatible electrolysis is being examined, specifically with regard to locations and modes of operation of electrolysers, compatible with the system as a whole. New investments in power gas power plants must ensure that they are hydrogen ready. The government will continue with the already announced tenders for hydrogen sprinter power plants (4.4 GW) and renewable hydrogen hybrid power plants (4.4 GW).

Heat

Hydrogen is not expected to play a significant role in space heating, although it might be necessary for buildings not connected to heating networks or where heat pumps cannot operate efficiently. The conversion of natural gas distribution grids must be examined on whether it is economically viable, which is to be done through municipal heating plans. In large heat grids CHP can contribute to the heat supply. Waste heat recovery from electrolysers should be taken into account when planning production locations, along with other variables.