Unforeseeable costs and a lack of financing models cast a shadow over Germany’s hydrogen endeavors, according to a study by Advyce & Perlitz and PSvdL Consulting.

As the nation aims for a comprehensive energy transition, the challenges highlighted by 50 surveyed companies, including network operators and industrial firms, raise critical questions about the feasibility of green hydrogen as a linchpin in the shift away from fossil fuels.

Germany, a key player in the global push for renewable energy, has set ambitious targets for green hydrogen production as part of its broader energy transition strategy. Green hydrogen, produced using renewable electricity, is envisioned as a crucial component in gas power plants and a substitute for fossil fuels in energy-intensive industries.

A joint study by Advyce & Perlitz and PSvdL Consulting delves into the perspectives of 50 companies, encompassing network operators, industrial entities, and real estate firms. The findings underscore a substantial concern: 70% of respondents identify unforeseeable economic viability as a central hurdle, while 50% lament the absence of a viable financing model.

The stumbling blocks identified in the study have implications beyond individual companies. The success of Germany’s broader energy transition hinges on the effective integration of green hydrogen. Overcoming the highlighted challenges is essential for realizing the potential environmental and economic benefits associated with hydrogen as a clean energy carrier.

As Germany positions itself as a hydrogen frontrunner, the government’s role in fostering a conducive environment becomes pivotal. Collaborations between industry stakeholders, policymakers, and financial institutions will be crucial in addressing the challenges flagged by the study.

The success of Germany’s hydrogen ramp-up will depend on a strategic, collaborative approach that navigates economic uncertainties and establishes robust financial mechanisms.