Industry urges ramp-up of German hydrogen economy with new law

The German energy industry association BDEW has proposed a “hydrogen ramp-up law” to ensure that the country takes the steps necessary to establish a market for climate-friendly hydrogen as quickly as possible.

A new support program, such as carbon contracts for difference, should help fund hydrogen generation and use (CCfD). The government must also ensure that the permitting process is as simple as possible and that the necessary infrastructure for hydrogen imports is in place.

German education and research minister Bettina Stark-Watzinger said at a hydrogen conference in Berlin that the government would support hydrogen research projects with about two billion euros over the next four years. The minister is scheduled to visit Australia in order to boost bilateral cooperation.

The German and European hydrogen economy has become a central pillar of the government coalition’s energy policy. It now intends to accelerate the construction process even more in order to reduce the country’s reliance on Russian fossil fuel imports. The government wants to reach a 10-gigawatt electrolysis capacity by 2030, and hydrogen should be used primarily in sectors and processes that can’t yet be made carbon-neutral through electrification, such as aviation and heavy-duty vehicles. Increased funding for hydrogen is also part of the government’s climate-related immediate action plan.

It does acknowledge, however, that much of the green hydrogen will continue to be imported in the future. This means it would be produced in sun-drenched areas and shipped to Europe via pipeline or ship. The European Commission is expected to present a long-awaited draft regulation on 18 May that lays out the criteria for what constitutes green hydrogen, according to Tagesspiegel Background.