Due to rising CO2 prices, the economic success of energy-intensive companies in Saarland will depend on the shift to hydrogen as an energy carrier. Jürgen Barke (SPD), the Minister of Economics, expressed this belief, announcing that Saarland’s hydrogen strategy will be revised in close collaboration with local businesses.
Hydrogen Expansion Must Succeed by 2027
From 2027 onwards, the steel industry in Saarland aims to gradually transition from CO2-intensive steel production using coke to a more climate-friendly approach utilizing hydrogen. The steel industry in Saarland alone will require 120,000 tons of hydrogen annually. The necessary production facilities (electrolyzers) and the planned supply network in the Greater Region of Luxembourg, Lorraine, and Saarland are still in the planning or approval stages.
While Minister Barke did not guarantee that this production and distribution network would be operational by the time the steel industry transitioned, he noted that important milestones had been reached. Funding approvals for planned major projects had been obtained. He emphasized the rapid progress of the hydrogen economy in the region. He expressed confidence that a regional “hydrogen island network” can be established by 2027 before Saarland connects to the national hydrogen network by 2032.
Criticism and Response
The CDU faction in the Saarland parliament recently criticized the state government for not doing enough to expedite hydrogen production in the border area of Carling, from where much of the urgently needed hydrogen is expected to come by the end of 2026. Barke countered this criticism, stating that the government communicates well with French decision-makers and has planned meetings in Paris to discuss these issues.
Saarland Revises Hydrogen Strategy With Companies
Saarland’s state government is currently revising its 2021 hydrogen strategy. The revised strategy aims to accelerate the hydrogen economy and its practical implementation in close cooperation with the Hydrogen Agency. The goal is to complete this strategy development process in the first half 2025. Key questions include what companies can do themselves and how the state government can support them. A meeting with 130 regional hydrogen economy and business representatives is set to take place, focusing on a resource-efficient switch to hydrogen.
Barke: Without Hydrogen, “Ruinous Financial Impacts” for Energy-Intensive Companies
For energy-intensive companies in Saarland, investing in the transition to hydrogen is crucial. Many are still relying on fossil fuels like gas or oil. Barke warned that considering climate neutrality and CO2 price developments, these companies will need to shift from fossil fuels quickly to avoid financially ruinous outcomes.
Demand for Hydrogen
According to the Hydrogen Agency, 33 companies at 55 locations in Saarland have already expressed a need for hydrogen. Based on these requests, the agency estimates a demand of up to 350,000 tons of hydrogen per year by 2035 in Saarland, but only if hydrogen can be produced for a maximum of five euros per kilo. Production costs exceed 10 euros per kilo, making the transition unprofitable for companies. The demand for Saarland’s economy cannot be met by the planned regional island network alone, necessitating a connection to the national distribution network by 2032.
