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Germany accelerates hydrogen economy to meet climate-neutral goals
2023/8/7
On July 26, the German Federal Government adopted a new version of the National Hydrogen Energy Strategy, hoping to accelerate the development of Germany's hydrogen economy to help it achieve its 2045 climate neutrality goal.
Germany is seeking to expand its reliance on hydrogen as a future energy source to reduce greenhouse gas emissions from highly polluting industrial sectors such as steel and chemicals, and to reduce its reliance on imported fossil fuels. Three years ago, in June 2020, Germany released its national hydrogen energy strategy for the first time.
Green hydrogen target doubled
The new version of the strategy release is a further update of the original strategy, mainly including the accelerated development of the hydrogen economy, all sectors will have equal access to the hydrogen market, all climate-friendly hydrogen is taken into account, the accelerated expansion of hydrogen infrastructure, international cooperation Further development, etc., to develop a framework for action for hydrogen energy production, transport, applications and markets.
Green hydrogen, produced through renewable energy sources such as solar and wind power, is the backbone of Germany's plans to move away from fossil fuels in the future. Compared with the goal proposed three years ago, the German government has doubled the green hydrogen production capacity target in the new strategy. The strategy mentions that by 2030, Germany's green hydrogen production capacity will reach 10GW and make the country a "hydrogen power plant". leading provider of technology".
According to forecasts, by 2030, Germany's hydrogen demand will be as high as 130 TWh. This demand could even be as high as 600 TWh by 2045 if Germany is to become climate neutral.
Therefore, even if the local water electrolysis capacity target is increased to 10GW by 2030, 50% to 70% of Germany's hydrogen demand will still be met through imports, and this proportion will continue to rise in the next few years.
As a result, the German government says it is working on a separate hydrogen import strategy. In addition, it is planned to build a hydrogen energy pipeline network of about 1,800 kilometers in Germany as early as 2027-2028 through new construction or renovation.
German Deputy Chancellor and Minister of Economy Habeck said: "Investing in hydrogen is investing in our future, climate protection, technical work and energy supply security."
Continue to support Blue Hydrogen
According to the updated strategy, the German government wants to accelerate the development of the hydrogen market and "significantly increase the level of the entire value chain". So far, government support funding has been limited to green hydrogen, and the goal remains "to achieve a reliable supply of green, sustainable hydrogen in Germany".
In addition to measures to accelerate market development in multiple fields (ensure sufficient hydrogen supply by 2030, establish solid hydrogen infrastructure and applications, create effective framework conditions), the relevant new decisions also involve state support for different forms of hydrogen.
Although the direct financial support for hydrogen energy proposed in the new strategy is limited to the production of green hydrogen, the application of hydrogen produced from fossil fuels (so-called blue hydrogen), whose carbon dioxide emissions are captured and stored, can also receive state support. .
As the strategy says, hydrogen in other colors should also be used until there is enough green hydrogen. In the context of the Russia-Ukraine conflict and the energy crisis, the goal of security of supply has become even more important.
In the fight against climate change, hydrogen produced from renewable electricity is increasingly seen as a panacea for sectors such as heavy industry and aviation, where emissions are particularly stubborn. It is also seen as a way to bolster the electricity system with hydrogen plants as backup during periods of low renewable generation.
In addition to the controversy over whether to support different forms of hydrogen production, the field of hydrogen energy applications has also been the focus of discussion. The updated hydrogen strategy states that the use of hydrogen in various application areas should not be restricted.
However, state funding should be focused on areas where hydrogen is "absolutely required or has no alternative". The German national hydrogen energy strategy takes into account the possibility of widespread application of green hydrogen. The focus is on sectoral coupling and industrial transformation, but the German government also supports the use of hydrogen in the transport sector in the future. Green hydrogen has the greatest potential in industry, in other hard-to-decarbonize sectors such as aviation and maritime transport, and as a feedstock for chemical processes.
The strategy states that improving energy efficiency and accelerating the expansion of renewable energy is crucial to achieving Germany's climate goals. It also highlighted that direct use of renewable electricity is preferable in most cases, such as in electric vehicles or heat pumps, because of its lower conversion losses compared to using hydrogen.
The German government said that for road transport, hydrogen can only be used for heavy commercial vehicles, while in the heating sector, hydrogen will be used in "quite isolated cases".
This strategic upgrade demonstrates Germany's determination and ambition to develop hydrogen energy. The strategy clearly states that by 2030, Germany will become a "major supplier of hydrogen technology" and establish a development framework for the hydrogen energy industry at the European and international levels, such as Licensing procedures, joint standards and certification systems, etc.
Germany is seeking to expand its reliance on hydrogen as a future energy source to reduce greenhouse gas emissions from highly polluting industrial sectors such as steel and chemicals, and to reduce its reliance on imported fossil fuels. Three years ago, in June 2020, Germany released its national hydrogen energy strategy for the first time.
Green hydrogen target doubled
The new version of the strategy release is a further update of the original strategy, mainly including the accelerated development of the hydrogen economy, all sectors will have equal access to the hydrogen market, all climate-friendly hydrogen is taken into account, the accelerated expansion of hydrogen infrastructure, international cooperation Further development, etc., to develop a framework for action for hydrogen energy production, transport, applications and markets.
Green hydrogen, produced through renewable energy sources such as solar and wind power, is the backbone of Germany's plans to move away from fossil fuels in the future. Compared with the goal proposed three years ago, the German government has doubled the green hydrogen production capacity target in the new strategy. The strategy mentions that by 2030, Germany's green hydrogen production capacity will reach 10GW and make the country a "hydrogen power plant". leading provider of technology".
According to forecasts, by 2030, Germany's hydrogen demand will be as high as 130 TWh. This demand could even be as high as 600 TWh by 2045 if Germany is to become climate neutral.
Therefore, even if the local water electrolysis capacity target is increased to 10GW by 2030, 50% to 70% of Germany's hydrogen demand will still be met through imports, and this proportion will continue to rise in the next few years.
As a result, the German government says it is working on a separate hydrogen import strategy. In addition, it is planned to build a hydrogen energy pipeline network of about 1,800 kilometers in Germany as early as 2027-2028 through new construction or renovation.
German Deputy Chancellor and Minister of Economy Habeck said: "Investing in hydrogen is investing in our future, climate protection, technical work and energy supply security."
Continue to support Blue Hydrogen
According to the updated strategy, the German government wants to accelerate the development of the hydrogen market and "significantly increase the level of the entire value chain". So far, government support funding has been limited to green hydrogen, and the goal remains "to achieve a reliable supply of green, sustainable hydrogen in Germany".
In addition to measures to accelerate market development in multiple fields (ensure sufficient hydrogen supply by 2030, establish solid hydrogen infrastructure and applications, create effective framework conditions), the relevant new decisions also involve state support for different forms of hydrogen.
Although the direct financial support for hydrogen energy proposed in the new strategy is limited to the production of green hydrogen, the application of hydrogen produced from fossil fuels (so-called blue hydrogen), whose carbon dioxide emissions are captured and stored, can also receive state support. .
As the strategy says, hydrogen in other colors should also be used until there is enough green hydrogen. In the context of the Russia-Ukraine conflict and the energy crisis, the goal of security of supply has become even more important.
In the fight against climate change, hydrogen produced from renewable electricity is increasingly seen as a panacea for sectors such as heavy industry and aviation, where emissions are particularly stubborn. It is also seen as a way to bolster the electricity system with hydrogen plants as backup during periods of low renewable generation.
In addition to the controversy over whether to support different forms of hydrogen production, the field of hydrogen energy applications has also been the focus of discussion. The updated hydrogen strategy states that the use of hydrogen in various application areas should not be restricted.
However, state funding should be focused on areas where hydrogen is "absolutely required or has no alternative". The German national hydrogen energy strategy takes into account the possibility of widespread application of green hydrogen. The focus is on sectoral coupling and industrial transformation, but the German government also supports the use of hydrogen in the transport sector in the future. Green hydrogen has the greatest potential in industry, in other hard-to-decarbonize sectors such as aviation and maritime transport, and as a feedstock for chemical processes.
The strategy states that improving energy efficiency and accelerating the expansion of renewable energy is crucial to achieving Germany's climate goals. It also highlighted that direct use of renewable electricity is preferable in most cases, such as in electric vehicles or heat pumps, because of its lower conversion losses compared to using hydrogen.
The German government said that for road transport, hydrogen can only be used for heavy commercial vehicles, while in the heating sector, hydrogen will be used in "quite isolated cases".
This strategic upgrade demonstrates Germany's determination and ambition to develop hydrogen energy. The strategy clearly states that by 2030, Germany will become a "major supplier of hydrogen technology" and establish a development framework for the hydrogen energy industry at the European and international levels, such as Licensing procedures, joint standards and certification systems, etc.
German energy experts said that hydrogen energy is still a missing part of the current energy transition. What cannot be ignored is that it provides an opportunity to combine energy security, climate neutrality and enhance competitiveness.
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