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Germany agrees hydrogen strategy to kickstart electrolyzers for 2030s


5 GW electrolyzer target for 2030, 10 GW 2035, 15 GW 2040

$10 bil support, carbon CfDs, tenders to kickstart H2 economy

Strategy details to be published mid-June: Altmaier

London — Germany's government has agreed the details of the national hydrogen strategy with $10 billion to be set aside in the federal budget to kickstart growth in electrolysis capacity for renewable hydrogen production, energy and economy minister Peter Altmaier said June 4.

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The final details of the strategy, delayed by coalition disputes since late 2019, were agreed overnight with the finance minister and will be published either next week or the week after, Altmaier said presenting aspects of the $145 billion coronavirus recovery plan.

The framework of the hydrogen strategy is already outlined in the green recovery plan which states the aim to make German a leader in hydrogen technology with Eur7 billion ($7.9 billion) to be set aside for the national strategy and a further Eur2 billion to boost hydrogen technology outside Germany, it said.

Up to 5 GW of electrolyzer capacity are planned by 2030 including offshore, it said.

A further 5 GW each are planned by 2035 and 2040 respectively, it added.

Support for hydrogen production will include tenders for electrolyzer capacity focusing on a switch from fossil energy in large industrial processes, it said.

Federal support is to focus on all regions with some German states already having their own support programs for hydrogen.

So-called Carbon Contracts for Difference are set to play a key role in assigning support for pilot projects.

The government plans to exempt electricity used for green hydrogen production from the green power levy (EEG Umlage), it added.

Quotas would be reviewed for green kerosene as well as green steel, it said.

Hydrogen-ready gas-fired power plants will receive additional support under the CHP law.

Hydrogen for heavy vehicle transport will be supported through refueling stations.

Regulatory frameworks for a hydrogen infrastructure will be implemented rapidly, the coalition plan said.

The government also plans to invest Eur2 billion in German electrolyzer capacity in countries where production of green hydrogen is more cost-efficient than in Germany itself.