Germany bets on diversified supply in draft hydrogen import strategy

The German government plans to have a diversified import structure for green hydrogen, shows a draft strategy seen by Tagesspiegel Background. It counts on pipelines to supplier countries like Denmark, Norway and the UK, later also to northern African countries, for example through Italy, says the draft hydrogen import strategy compiled by the economy ministry. In the long term, Germany wants to import green hydrogen made from renewable electricity, but it will also allow low-carbon hydrogen. This could include hydrogen derived from natural gas, where the CO2 is captured and stored.

The country is using state support programmes, such as the H2Global import scheme, the Important Projects of Common European Interest (IPCEI) for infrastructure or the "climate contracts" for industry transformation to build up a supply system. The strategy also says the imported hydrogen products must adhere to requirements like social standards, ensure sustainable water supply and land use, and make local value creation possible. The government aims to push for an international certification system to ensure these criteria are met. It is set to agree the strategy on 24 July, writes Tagesspiegel.

Green hydrogen is set to play a crucial role in the decarbonisation of many hard-to-abate sectors, such as steelmaking or the chemical industry. But Germany or Europe as a whole are unlikely to cover the entire projected demand with local production. Last week, Germany awarded a contract to receive green ammonia from Egypt through its first auction for import of green hydrogen products.