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Four years after the launch of Germany鈥檚 national hydrogen strategy, the buildout of hydrogen infrastructure is behind schedule and could run into serious trouble that scares away investors looking for reliable framework conditions, the country鈥檚 National Hydrogen Council (NHC) has said. 鈥淭his has far-reaching implications for the achievement of climate protection targets, the attractiveness and resilience of Germany as an industrial location as well as the goal of becoming a leading provider of hydrogen,鈥� the government-appointed advisory body said in a聽. Moreover, the delay means that the country鈥檚 ability to receive enough of the synthetic gas produced with renewable energy sources from a variety of suppliers is called into question. 鈥淭here is a risk of value creation chains being relocated abroad 鈥� with corresponding job losses and diminished competitiveness for many economic sectors that still rely on gas-based energy supply,鈥� the council said.

Green hydrogen continues to be a key for mastering the transformation towards a greenhouse gas neutral economy, council head Katherina Reiche said. 鈥淲e cannot afford any further delays in scaling up our hydrogen infrastructure,鈥� she warned. One of the main reasons for the stalled launch has been the high price that potential buyers are simply unable or unwilling to pay, the NHC said. Instruments to bridge this gap are available but underfunded, while a complex and 鈥渢oo restrictive鈥� regulatory framework further complicates a fast buildout of hydrogen-ready infrastructure. All this led to a situation in which 鈥渁mbiguous messages and developments mean that there is no trust that policymakers will support the scale-up in the long run,鈥� the council said.

While there are many political pledges to boost the country鈥檚 hydrogen infrastructure, there is a widening gap between stated ambitions and actual achievements on the ground, both at the national and at the European level, for example in the context of the EU鈥檚 IPCEI (Important Project of Common European Interest) scheme, the NHC added. This could be seen in the difference between the planned 2030 green hydrogen production capacity of 10 gigawatts (GW) and the capacity of projects that already have secured an investment decision, which amounts to only 0.3 GW, the NHC said.

In the fight against climate change, hydrogen made with renewable electricity is increasingly seen as a silver bullet for sectors with particularly stubborn emissions, such as heavy industry and aviation. Germany aims to become a global leader in the associated hydrogen technologies, and the government has penned a national hydrogen strategy to fulfil these ambitions.