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With a new factory for building electrolysers in Berlin, Germany鈥檚 Siemens Energy and France鈥檚 Air Liquide hope to lay the groundwork for a flourishing hydrogen economy in Europe. The 鈥済igafactory鈥� for electrolysers, which are used to extract hydrogen from water by splitting it from oxygen, will start with an annual production capacity of 1 gigawatt (GW), which equals about 300,000 tonnes of green hydrogen per year, Siemens Energy . Capacity is expected to grow to 3 GW by 2025. Chancellor Olaf Scholz, who attended the factory鈥檚 opening with economy minister Robert Habeck and French industry minister Roland Lescure, said the project was in line with his government鈥檚 strategy to secure Germany鈥檚 energy supply. 鈥淪iemens Energy will build electrolysers here 鈥� not in small quantities, but at an industrial scale [鈥�] and based on 100-percent renewable power supply,鈥� the chancellor said. Scholz argued the factory鈥檚 opening showed that energy production continues to be a profitable business 鈥測esterday, today and also in the climate neutral future.鈥� He added that the 鈥減rophecies of doom about Germany鈥檚 supposed de-industrialisation are totally misleading,鈥� and the German industry鈥檚 鈥渏ourney into the age of climate neutrality鈥� ensures that the products made in the Berlin factory will be in high demand. 鈥淭ransformation is not synonymous with relocating production and cutting jobs, but rather the precondition for economic success,鈥� Scholz argued. The chancellor said the cooperation with Air Liquide made the Siemens Energy factory a beacon of French-German industrial cooperation 鈥渆manating from the technology dialogue of our governments.鈥� Germany鈥檚 government aims to bring the national electrolyser capacity to 10 GW, he added. The hydrogen industry should be 鈥減rimarily privately funded,鈥� said Scholz, even though high initial costs made state assistance necessary, which France and Germany addressed through their hydrogen cooperation in the EU鈥檚 IPCEI framework.

Siemens Energy CEO Christian Bruch said the cooperation with Air Liquide helped secure a high number of orders for the factory even before production commenced. Several major hydrogen projects across Europe suggest promising business conditions, Bruch argued, adding the two companies 鈥渨ill now have to agree on a sustainable business model with a well-balanced risk and return profile.鈥�

Siemens Energy, which relocated its company headquarters from Erlangen to Berlin due to the factory鈥檚 opening, is currently grappling with major challenges in its green power business. The wind turbine manufacturing subsidiary Siemens Gamesa has accrued major losses, meaning Siemens Energy is currently to secure around 15 billion euros in funding. Chancellor Scholz, in his speech at the opening of the factory, said he is 鈥渃onfident that we soon will find a good solution鈥� for securing the company鈥檚 stability. Green hydrogen made with renewable energy is considered key to solving some of the energy transitions challenges, such as decarbonising industry processes or long-haul freight transport. Germany has set out to become a global leader in the associated hydrogen technologies, and the government has penned a National Hydrogen Strategy to fulfil these ambitions.