25 Apr 2024, 13:53
Jack McGovan

Implementation of Germany’s hydrogen plans lagging behind – report

Clean Energy Wire / Handelsblatt

Although Germany’s plans for building a green hydrogen economy look promising on paper, implementation is lagging far behind due to pent-up investments, according to a report by energy company E.ON. Currently, production facilities amounting to only 0.3 gigawatts (GW) are being built or are in the final stages of investment decision, compared to a 2030 target capacity of 10 GW, says the report based on data by the Institute of Energy Economics at the University of Cologne (EWI). By February, only 0.06 GW of capacity had already been installed.

“Only if all planned projects are actually realised by 2030 will the goal of the government be reached,” EWI’s research head Tobias Sprenger told business daily Handelsblatt. According to EWI, the volume of announced projects increased from 8.7 GW in August 2023 to 10.1 GW in February 2024. “Germany finds itself at the beginning of a long road when it comes to the expansion of hydrogen,” said Gabriel Clemens, CEO of E.ON Hydrogen.

Hydrogen remains an important part of Germany’s strategy for decarbonising heavy industry. As one of the key drivers behind a pan-European effort to implement the technology, Germany has set out to become a global leader in what is sometimes referred to as "tomorrow's oil" – not only to launch the next stages of its landmark energy transition, but to also secure a promising growth market for its internationally reputed industry.

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