Germany’s hydrogen rollout faced another major setback this month, with E.ON announcing the cancellation of its 20MW HydroHarbourEssen project and a broader withdrawal from international hydrogen production and infrastructure development.
The decision highlights deepening investor skepticism around regulatory stability and economic viability in Germany’s hydrogen sector, despite its formal target of 10GW electrolyzer capacity by 2030.
The Essen facility, originally slated to produce 2,300 tonnes of green hydrogen annually by 2027, was intended to be a cornerstone in E.ON’s hydrogen import and midstream strategy. Its cancellation coincides with the company’s restructuring of its green gas activities into its Energy Infrastructure Solutions (EIS) business unit. The shift narrows E.ON’s hydrogen focus to integrated, business-to-business solutions for industrial clients—a move the company describes as “customer-oriented” but which also reflects a growing retreat from large-scale supply ambitions.
E.ON also confirmed its exit from the H2.Ruhr project, a proposed hydrogen pipeline designed to connect the industrial centres of Essen and Duisburg. Initiated in 2021 in collaboration with Enel, Iberdrola, ABB and SAP, the project was expected to enable the delivery of up to 80,000 tonnes of hydrogen and ammonia per year. The pipeline would have provided critical infrastructure for the North Rhine-Westphalia region, where steel, chemicals, and heavy transport dominate energy demand.
The rollback is the latest in a series of project delays or cancellations in Germany’s hydrogen sector. In June, steel producer ArcelorMittal scrapped renewable hydrogen-based decarbonisation plans for its Bremen and Eisenhüttenstadt sites, despite securing €1.3 billion in government subsidies. Around the same time, regional utilities EWE and LEAG postponed 50MW and 10MW green hydrogen projects, respectively, citing persistent policy and market uncertainties.
The stalled implementation of Germany’s Power Plant Safety Act—delayed following the collapse of the coalition government in late 2023—has emerged as a critical bottleneck. The law was expected to provide a framework for hydrogen-based generation and capacity remuneration, essential for de-risking investments in electrolysis and related infrastructure.
These developments pose challenges to Germany’s climate ambitions, particularly in industrial decarbonisation. While E.ON reiterated its belief that green hydrogen remains “vital for hard-to-decarbonize sectors,” its strategic retreat underscores the market’s current fragility. The company’s continued interest in hydrogen is now limited to applications with direct commercial links to industrial B2B clients, avoiding exposure to underdeveloped infrastructure or volatile wholesale markets.
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