Germany should push domestic green hydrogen production as import quantities 'uncertain' - researchers

Germany is betting big on green hydrogen imports but the country should strengthen its own production as well because it is "uncertain" where those imports will come from in relevant quantities by 2030, researchers have warned. Environmental think tank Wuppertal Institute said in a report that production targets in European countries lag behind Germany's, adding that many states are also focusing on ramping up hydrogen production for domestic demand. Spain is among the most advanced when it comes to hydrogen projects but will also initially focus on local needs, the researchers noted. Europe's existing hydrogen production sites and those with a definite investment decision currently amount to 2.5 gigawatts, just 6 percent of the EU's 2030 target. Imports from global "sweet spots" with high renewables potential, such as Namibia and Saudi Arabia, will only make a small initial contribution to Germany's hydrogen supply, stated the report.

According to the government's 2030 hydrogen import strategy, it expects imports will cover 50 to 70 percent of demand for the fuel, seen as a key technology to decarbonise sectors where electrification is not an option, such as in parts of industrial manufacturing or in chemical production. Wuppertal Institute president Manfred Fischedick said Germany needed "more in-house production" of hydrogen, while at the same time bolstering global alliances. He called for an increase of cooperation in Europe to expand the H2 economy. 

In 2023, Namibia commissioned a 10-billion-dollar green hydrogen project – Sub-Saharan Africa's largest – in conjunction with German investors. The country is hosting a major hydrogen summit this week.