Germany is preparing to classify hydrogen production as being of “overriding public interest,” a legal designation designed to accelerate permitting and implementation at a moment when the country’s hydrogen strategy is visibly off track.
According to Tagesspiegel Background, the coalition government has agreed to expand the hydrogen acceleration law, signaling a pragmatic shift after years of slower-than-expected project delivery.
The amended framework would extend fast track treatment beyond renewable based green hydrogen to include blue hydrogen produced from fossil gas combined with carbon capture and storage. The proposal, expected to clear the Economic Affairs Committee of the German parliament, reflects growing recognition that the original strategy assumptions on timelines and market readiness have not materialized.
That reassessment is backed by official scrutiny. A special report from the German Court of Auditors found that despite billions of euros in subsidies, Germany is unlikely to meet the objectives set out in its hydrogen strategy in the near term. Both supply and demand have lagged well below expectations, undermining the premise that green hydrogen scale up would proceed in parallel with rapid renewable expansion and industrial offtake.
Capacity figures illustrate the gap between ambition and reality. Germany’s 2030 target of 10 gigawatts of electrolyzer capacity contrasts sharply with the 181 megawatts currently in operation, according to the EWI. At this pace, the build out trajectory falls far short of what is needed to decarbonize heavy industry or support hydrogen based fuels in aviation and shipping within the planned timeframe.
Industry groups have used these numbers to argue for a broader technology scope. The energy industry association BDEW and the German Chambers of Industry and Commerce have pushed for recognition of low carbon hydrogen pathways, warning that waiting for sufficient additional renewable capacity risks stalling industrial transformation altogether. From their perspective, blue hydrogen could act as a bridge, enabling early infrastructure build out, demand creation, and learning effects while green hydrogen costs remain high.
Environmental organizations, however, see the expansion as a strategic retreat. Their criticism centers on the risk of locking in fossil gas dependence and diverting capital from renewable based solutions. Concerns also persist around the effectiveness and scalability of carbon capture and storage, particularly given uncertainties over long term storage integrity and methane leakage across gas supply chains.
The policy shift highlights a deeper tension in Germany’s climate and industrial policy. Green hydrogen remains central to decarbonizing sectors with limited alternatives, yet cost inflation, permitting delays, and hesitant demand have eroded early momentum. By elevating hydrogen projects to overriding public interest status and broadening eligibility to blue hydrogen, policymakers are prioritizing speed and industrial continuity over strict technology purity.
