Germany’s Hydrogen Import Strategy Needs Support

The federal government has adopted its hydrogen import strategy. With this, the government aims to pave the way for a resilient supply of green hydrogen and its derivatives to the German economy. For successful implementation, appropriate funding measures and progress in certification are now required.

(Berlin) “The federal government has found a more pragmatic approach,” welcomes Ralf Diemer, Managing Director of the eFuel Alliance, the new strategy. “Not limiting the use of hydrogen and its derivatives to individual sectors is essential for a rapid ramp-up and swift cost reductions. It is commendable that the federal government wants to pursue this market-oriented approach. Now it is important to implement this strategy with suitable measures and to eliminate final hurdles.”

The German demand for hydrogen and its derivatives is estimated to reach 95-130 terawatt-hours (TWh) by 2030. Due to increasing demand, the need will rise drastically by 2045. The federal government expects that by 2045, 360-500 TWh will be demanded for hydrogen and an additional 200 TWh for hydrogen derivatives – significantly above the demand indicated in the update of the National Hydrogen Strategy. To reliably provide these quantities, the establishment of corresponding pipelines is planned, as well as securing transport by ship, rail, and road, in order to import both pure hydrogen and its by-products such as synthetic diesel, ammonia, methane, and methanol from partner regions.

To support these processes and the market ramp-up, funding measures are extremely important. One of the central funding instruments for the ramp-up of green hydrogen and eFuels in Germany is H2Global. The first results from two of three tender rounds were announced on July 11, 2024. So far, however, the procurement program has only been insufficiently effective.

Restrictive Production Criteria

“The tender results show where the obstacles in the production of the derivatives lie. While there was a successful bid for e-ammonia, the interested companies for the e-kerosene funding have withdrawn from the process. One of the reasons is the restrictive production criteria. The regulatory framework for the production and import of green hydrogen and its derivatives dims the good idea of the H2Global auction program,” criticizes Diemer. “The federal government must respond and counteract the restrictive legal framework at the EU level to avoid jeopardizing the achievement of targets.”

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