Germany's plans to strengthen hydrogen market need broadening, industry says

Industry representatives have largely welcomed Germany's plans to ramp up the hydrogen market, but called for amendments to a draft law to broaden support for different types of hydrogen during an expert hearing in parliament. Lobby groups said the draft Hydrogen Acceleration Act, which would classify hydrogen projects as of "overriding public interest" to speed up their buildout, should include entire value chains for hydrogen, and do more to improve water protection.

Facilities needed to feed H2 into pipelines should be prioritised, as pipelines are the most cost-effective form of transporting the fuel nationally and internationally, said Werner Diwald, head of the German Hydrogen Association (DWV). Germany is constructing hydrogen transport and import infrastructure, and industries have urged the country to coordinate with other countries across Europe and the world.

Association Zukunft Gas, which mainly represents the natural gas industry, said that there should be no restriction on the type of hydrogen used in order to get the market off the ground, Tagesspiegel Background reported. Hydrogen made from renewable electricity, otherwise known as ‘green’ hydrogen, is considered crucial both to help decarbonise particular industrial processes and to enable large-scale renewable power storage.

The German government is heavily betting on the fuel and has launched an auction scheme for green hydrogen imports, as the country will not be able to cover demand with domestic production. But industry has often called on the government to also allow other types of hydrogen, at least for a transitional period - for example "blue" hydrogen, which is made from natural gas with CO2 capture to avoid greenhouse gas emissions. Currently, the most common and cheapest form of hydrogen is the "grey" type, which is also made from natural gas, but without capturing emissions during the production process. 

Alexander Kräß from environmental conservation association Deutscher Naturschutzring warned that the Acceleration Act's shorter deadlines risked undermining civil society's role in participation procedures. Several industry experts also raised concerns over the need to consider water resources when approving electrolysers, because these require large amounts of water. Nadine Schartz from the association of municipal umbrella organisations said households, businesses, farmers and energy producers also need water, while Karsten Specht from the local utilities’ association VKU said hydrogen production could increase regional competition for the resource.