The German government has recently adopted a new strategy for importing hydrogen fuel, aiming to enhance investment security while bolstering demand over the medium to long term.
This strategic move is designed to ensure a stable foundation for the future of hydrogen fuel in the country.
Focus on Hydrogen Fuel and Derivatives
The core of the new strategy is the import of hydrogen fuel and its derivatives. The government is laying the groundwork for the essential hydrogen imports that Germany will need in the coming years.
According to projections, the national demand for gaseous or liquid hydrogen, molecular hydrogen, ammonia, methanol, naphtha, and electricity-based fuels is expected to reach between 95 to 130 TWh by 2030.
Import Projections and Future Demand
The German government anticipates that between 50% and 70% of this national demand—equivalent to 45 to 90 TWh—will need to be met through imports.
Moreover, the proportion of these imports is expected to increase beyond 2030. By 2045, hydrogen fuel demand could soar to between 360 to 500 TWh, with hydrogen derivatives increasing to about 200 TWh.
Aligning with National Hydrogen Strategy
The import strategy is part of broader initiatives such as the National Hydrogen Strategy. German Economic Affairs Minister Robert Habeck explained that this approach creates investment security for hydrogen production in partner countries and supports the development of the necessary import infrastructure, benefiting German industry as a customer.
The goal is to diversify sources of clean energy as much as possible.
Observing Trends in the Netherlands
Germany has also been observing hydrogen market trends in neighboring countries, particularly the Netherlands. Between October 2023 and April 2024, the Netherlands saw substantial growth in supply and demand for hydrogen.
However, most projects remain in the development phase, highlighting the ongoing challenge of making firm financial investment decisions (FIDs).
ICIS Hydrogen Foresight Project Insights
According to data from the ICIS Hydrogen Foresight project, the announced low-carbon hydrogen production capacity in the Netherlands is expected to reach approximately 17 GW by 2040, with 74% of this capacity anticipated to be operational by 2035.
This data underscores the significant yet cautious progress being made in the hydrogen sector.
In summary, Germany’s new hydrogen fuel import strategy aims to secure long-term investment and meet the rising demand for hydrogen and its derivatives. By learning from nearby markets and emphasizing diversification, Germany is positioning itself to become a key player in the future hydrogen economy.