Germany, aiming to decarbonize its economy, is preparing to import 50 to 70% of its required hydrogen, the government announced on Wednesday, under pressure from economic stakeholders to implement this ambitious goal.
Hydrogen’s Role in Energy Transition
For Europe’s largest economy, which phased out nuclear power in 2023 and aims to eliminate coal by 2030-2038, hydrogen and its derivatives are crucial for decarbonizing industry and energy production.
The war in Ukraine further emphasized the need to move away from cheap Russian gas, which has fueled German factories for decades.
Import Strategy
A significant portion of hydrogen needs “will have to be met by imports from abroad,” stated Economy Minister Robert Habeck (Greens) on Wednesday, presenting the government’s roadmap for sourcing from third countries.
Projected Import Volumes
According to the ministry, Germany will need to import 45 to 90 terawatt-hours (TWh) of hydrogen and hydrogen derivatives by 2030, representing 50 to 70% of its total annual needs (between 95 and 130 TWh).
By 2045, the country’s needs could reach between 360 and 500 TWh of hydrogen and around 200 TWh of hydrogen derivatives.
Global Partnerships
Berlin claims to be working with “a large number of countries, regions, and partner actors” to “diversify supply sources as much as possible.”
Establishing hydrogen partnerships has been a focus of Chancellor Olaf Scholz and the Economy Minister’s travels in recent years, particularly to the African continent, but also to Canada, Qatar, and Australia.
Import and Transportation
Imports from partner countries will be transported by ship, in the form of ammonia or liquid hydrogen. Germany is also investing in pipeline construction for transport from closer regions.
Hydrogen is intended for use in sectors where renewable energies like solar and wind cannot be directly applied, such as energy-intensive industries like steel production. It is also expected to eventually replace gas in power plants.
Criticism and Demands
Several economic representatives criticized the roadmap on Wednesday, deeming it insufficiently concrete. There is a lack of “new measures, fresh impetus, or even milestones that could stimulate the global hydrogen trade,” lamented Hartmut Rauen of the German Engineering Federation (VDMA).
Gas professionals grouped in the “Zukunft Gas” association called for “concrete measures and timelines,” as well as the establishment of a “uniform international certification system for hydrogen.”