Germany eyes strategy to support refineries in transition away from fossil fuels

Germany’s economy ministry has kicked off a dialogue with the oil industry to find ways to safeguard the country’s refineries and support them in their shift away from fossil energy sources. The process, in which trade unions, relevant industries and the federal states will also take part, is meant to produce results in the first quarter of 2027, on which the cabinet will base a “refinery strategy”, the ministry said.

Even as the country increasingly uses renewable electricity across its economic sectors, Germany’s refineries are needed as producers of molecules, such as hydrogen, synthetic jet fuel, and biofuels, economy minister Katherina Reiche said. “I want Germany to remain a molecule hub,” Reiche said at the launch event, Tagesspiegel Background reported. 

Germany currently has eleven sites with a total capacity to use around 92 million tonnes of crude oil per year, providing petrol, diesel and heating oil, as well as feedstock for other industrial sectors such as the pharmaceuticals industry. However, the country is moving away from fossil fuels and aims for climate neutrality of its entire economy by 2045, requiring the switch to renewable energy sources. Molecules, such as hydrogen or methane, could still be required in certain industries, for example to create very high temperatures, or as feedstock in chemicals production. In future, these molecules could be produced with renewable electricity and using carbon from sustainable sources, rather than fossil fuels. 

Green Party energy policy spokesperson Michael Kellner said wealthy oil companies have enough money for the necessary investments, public broadcaster ARD reported.

Economist Claudia Kemfert also called for the strategy to focus on transformation rather than guarantee the survival of fossil-fuel-based business models, according to the broadcaster. While refineries could produce sustainable aviation fuels, hydrogen and non-fossil feedstocks, synthetic fuels would not necessarily be produced by today’s established refinery operators, Kemfert said.

The economy ministry emphasised that energy security remained a major interest. Geopolitical conflicts and attacks on energy infrastructure have made clear that domestic capacities are “strategically important infrastructure”, it said. “The loss of these refineries cannot be offset by imports.” Meanwhile, companies now need to invest billions to retrofit the sites and meet demand for hydrocarbons through sustainable sources instead of fossil fuels, it said.

Germany’s refineries are under pressure from the rising cost of emissions, historically cheap fuel imports, weak demand and underinvestment. German petrol and diesel output rose in the first half of 2026, by 1.8 percent and 9.4 percent respectively, while fuel imports fell significantly, according to the Federal Statistical Office (Destatis), Tagesspiegel Background reported.