Germany is moving closer to achieving its target of developing a green hydrogen market by the end of the decade, according to E.ON, one of the country’s largest utilities.
The update issued by the company on Friday is more optimistic than the previous one six months ago. Germany aims to reach 10 gigawatts of green hydrogen capacity by 2030. In the last six months, several new projects, which are also larger in size, have emerged, making the target seem more achievable.
Green hydrogen is produced using solar and wind power, and it is embraced by industries like steelmaking or cement, which seek to replace the use of millions of tonnes of “grey” hydrogen made with gas. E.ON said that the disruptions in gas supplies from Russia and climate concerns have prompted Germany to hasten its transition to renewable energy.
According to E.ON, plans for hydrogen generation capacity by 2030 have increased from 5.6 GW in July 2022 to 8.1 GW in February 2023. This increase brings Germany closer to its goal of achieving an installed capacity of 10 GW by 2030. Furthermore, the gap to be covered by imports has also decreased from the previously expected 50.5 TWh to 43.5 TWh by 2030, assuming an annual hydrogen demand of 66 TWh.
However, many projects still require final investment decisions, and there is no clear network for transporting green hydrogen. E.ON noted that while plans for new pure hydrogen pipelines have increased from 2,273 km to 2,813 km in the past six months, only 417 km of hydrogen pipes are currently operational.
The European Commission’s rules in February on what could be counted as hydrogen of “green” origin, which included nuclear-based energy, were deemed by E.ON as a necessary basis for investing in the hydrogen market. Nevertheless, the hydrogen market has potential challenges, and the development of a network to transport green hydrogen is still far from being accomplished.
In conclusion, Germany is progressing well in achieving its green hydrogen market goals, but there are still hurdles to overcome, such as the need for final investment decisions and infrastructure for transporting green hydrogen. Nevertheless, it is an important step towards achieving a more sustainable and carbon-neutral future.
