German govt unveils import strategy for hydrogen, derivatives

The German government has approved an import strategy for hydrogen and its derivatives, a key element in the country's ambitious plan to rely heavily on hydrogen and meet more than half of its domestic demand through imports.

The federal government projects that national demand for hydrogen and its derivatives will reach 95 to 130 TWh by 2030. Between 50% and 70%, or 45 to 90 TWh, will likely need to be imported with the import share expected to rise further beyond 2030. Initial estimates suggest that by 2045, demand could increase to between 360 TWh and 500 TWh for hydrogen and around 200 TWh for hydrogen derivatives.

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The import strategy is designed to ensure a resilient supply of hydrogen and its derivatives to decarbonise the German economy and meet national climate protection targets. It includes both green and low-carbon hydrogen to enable a rapid hydrogen ramp-up.

The strategy supports a diversified product range for hydrogen imports, including molecular hydrogen and various derivatives such as ammonia, methanol, naphtha, and electricity-based fuels, as well as carriers like LOHC.

In addition, the government is pursuing parallel development of import infrastructures for pipeline and ship transport, with ship transport being particularly suitable for regions not connected by pipeline. Molecular hydrogen can be transported cost-effectively via pipelines, allowing for hydrogen imports from Europe and neighbouring countries to Germany. For transport by ship, rail, or road, hydrogen derivatives, carrier media, and downstream products are particularly suitable.

Additionally, the government stressed that it is working closely with European partners and internationally with over 30 climate and energy partnerships, aiming to diversify supply sources.

REACTIONS

The German Hydrogen Association (DWV) welcomed the strategy as it sets the stage for the growth of the European hydrogen economy. However, its head, Werner Diwald, noted that while the increasing focus on imports from the EU is positive, it will not be sufficient.

In a statement, Diwald noted that pipeline transport from Europe is the most efficient solution to sustainably achieve the goal of meeting up to 70% of hydrogen demand through imports. However, he criticised it for the lack of specific details on how imports will be covered by 2030.

"Additionally, the strategy is not supported by clear and verifiable targets, making evaluation impossible. As a result, there is still uncertainty on the demand side regarding the adequate availability of hydrogen, leading to a lack of a foundation for concrete business cases", Diwald said.

The industrial association BDI also welcomed the government's efforts to address Germany's substantial need for hydrogen imports through a strategy that includes both green and low-carbon hydrogen.

The measures and funding programmes described in the strategy can accelerate the ramp-up if they are implemented immediately, BDI said further but warned that this alone will not be enough to achieve the very ambitious goals.

The following map gives details about Germany's bilateral hydrogen partnerships with non-EU countries

Map source: BMWK