Oct 10, 2025
Germany plans to adjust its hydrogen subsidies and place greater emphasis on imports.
Germany intends to revamp its hydrogen support programs and focus more on imports to reduce costs. After facing challenges, the economy ministry indicated a shift in the country's approach to developing a hydrogen economy.
Hanna Schumacher, head of the hydrogen and gas infrastructure department, announced that the government will adjust support initiatives aimed at enhancing the hydrogen economy and increase reliance on fuel imports. She remarked at a hydrogen industry conference in Berlin that a detailed review of the funding framework is necessary, as the initial hydrogen rollout has not met expectations. She mentioned that it might be prudent to slow down efforts and ensure successful outcomes.
When asked about the possibility of a feed-in tariff system for green hydrogen producers, Schumacher tempered expectations, pointing out that the cost of renewable support programs has been a burden on policymakers. She emphasized the need for cost-controlled instruments in discussions.
The government will concentrate on reducing the overall costs associated with hydrogen in the energy system. Strategically placing electrolysers could avoid the need for electricity grid expansion by utilizing excess renewable energy during windy periods, potentially accepting slightly higher hydrogen production costs. National production should align with the energy system's needs, she added.
In combating climate change, hydrogen produced with renewable energy is viewed as a vital method for reducing emissions in difficult-to-decarbonize sectors, like heavy industry and aviation. Germany aims to become a global leader in hydrogen technologies, building on its National Hydrogen Strategy.
However, the initial enthusiasm for green hydrogen in Germany and Europe has faced significant setbacks, leading to project cancellations and challenges in production, transportation, and market dynamics.
Due to favorable renewable conditions, hydrogen production is expected to remain cheaper in sunny regions, with North African countries like Morocco potentially becoming key suppliers. Germany's prior government projected that 50 to 70 percent of its green hydrogen would be imported by 2030, and Schumacher indicated her ministry may prioritize imports even more.
The sluggish development of hydrogen infrastructure is a critical drawback in Germany's energy transition, prompting recent agreement on a draft law to expedite infrastructure expansion.
Industry leaders stress that hydrogen is essential for Germany's businesses. Kerstin Andreae from the BDEW emphasized the need for appropriate policies to build a new exportable industrial sector. Mathias Koch from Agora Industry warned against overreliance on 'blue hydrogen' produced from fossil gas, advocating for a focus on green hydrogen to maintain technological leadership and job creation.
Germany's new government supports using carbon capture and storage (CCS) in hydrogen production to ensure market readiness. Schumacher affirmed the importance of achieving climate targets while recognizing that both green and blue hydrogen, along with low-carbon alternatives, play roles in reducing costs.
Hanna Schumacher, head of the hydrogen and gas infrastructure department, announced that the government will adjust support initiatives aimed at enhancing the hydrogen economy and increase reliance on fuel imports. She remarked at a hydrogen industry conference in Berlin that a detailed review of the funding framework is necessary, as the initial hydrogen rollout has not met expectations. She mentioned that it might be prudent to slow down efforts and ensure successful outcomes.
When asked about the possibility of a feed-in tariff system for green hydrogen producers, Schumacher tempered expectations, pointing out that the cost of renewable support programs has been a burden on policymakers. She emphasized the need for cost-controlled instruments in discussions.
The government will concentrate on reducing the overall costs associated with hydrogen in the energy system. Strategically placing electrolysers could avoid the need for electricity grid expansion by utilizing excess renewable energy during windy periods, potentially accepting slightly higher hydrogen production costs. National production should align with the energy system's needs, she added.
In combating climate change, hydrogen produced with renewable energy is viewed as a vital method for reducing emissions in difficult-to-decarbonize sectors, like heavy industry and aviation. Germany aims to become a global leader in hydrogen technologies, building on its National Hydrogen Strategy.
However, the initial enthusiasm for green hydrogen in Germany and Europe has faced significant setbacks, leading to project cancellations and challenges in production, transportation, and market dynamics.
Due to favorable renewable conditions, hydrogen production is expected to remain cheaper in sunny regions, with North African countries like Morocco potentially becoming key suppliers. Germany's prior government projected that 50 to 70 percent of its green hydrogen would be imported by 2030, and Schumacher indicated her ministry may prioritize imports even more.
The sluggish development of hydrogen infrastructure is a critical drawback in Germany's energy transition, prompting recent agreement on a draft law to expedite infrastructure expansion.
Industry leaders stress that hydrogen is essential for Germany's businesses. Kerstin Andreae from the BDEW emphasized the need for appropriate policies to build a new exportable industrial sector. Mathias Koch from Agora Industry warned against overreliance on 'blue hydrogen' produced from fossil gas, advocating for a focus on green hydrogen to maintain technological leadership and job creation.
Germany's new government supports using carbon capture and storage (CCS) in hydrogen production to ensure market readiness. Schumacher affirmed the importance of achieving climate targets while recognizing that both green and blue hydrogen, along with low-carbon alternatives, play roles in reducing costs.