Power Technology

German Government approves hydrogen import strategy, industry raises concerns

Germany will need to import the majority of its hydrogen as it lacks the conditions necessary for production.

The German Government has approved an import strategy for hydrogen and its derivatives, in a move that will complement the national hydrogen strategy.

In a press release, the Ministry of Economic Affairs and Climate Protection (BMWK) said that national demand for hydrogen and its derivatives in Germany is expected to reach 95–130 terawatt-hours (TWh) by 2030, with 50–70% of this demand needing to be covered by imports as local conditions are not favourable for hydrogen production. The import strategy is therefore necessary to ensure a sufficient flow of hydrogen.

Robert Habeck, Federal Minister of BMWK, said: “A large part of Germany's hydrogen demand will have to be covered by imports from abroad in the medium to long term. The import strategy provides the framework for this. It sends a clear signal to our partners abroad: Germany expects a large and stable domestic demand for hydrogen and derivatives and is a reliable partner and target market for hydrogen products.

“The import strategy thus creates investment security for hydrogen production in partner countries, the development of necessary import infrastructure and for German industry as a buyer.”

According to the press release, the federal government is supporting a diverse product range of imports including hydrogen derivatives such as ammonia, methanol, naphtha and electricity-based fuels.

Referring to the announcement, Javier Cavada, CEO and president of Europe, the Middle East and Africa at Mitsubishi Power, told Power Technology that “what the German Government is doing is planning forward and, frankly, they are doing the right thing”.

Although the announcement has generally been positively received by industry, some say the government could have gone further to ensure supply needs will be met. Timm Kehler, head of lobby group Zukunft Gas, said: “Although the strategy states that hydrogen imports will be an important component of the future energy system, it gives no indication of a reliably growing demand in Germany.”

The group also called for “a standardised, international certification system for hydrogen” to develop a global market.