This article was the Topic of the Week in the newsletter of week 33 in 2026.

"The champagne of the energy transition" – this is how hydrogen (H₂) is often described. While one can certainly forego champagne, there is no getting around hydrogen if Germany is to become climate neutral by 2045.

Hydrogen will play a central role in energy-intensive industries – especially in processes that require high temperatures, such as in steel, cement, lime or waste management, or as a raw material for the chemical industry. It will also be needed for the decarbonisation of transport, particularly in the areas of heavy-duty transport, shipping and aviation. Last but not least, it will be crucial for energy supply security in winter. In short: it is expected to be used wherever green electricity alone is insufficient. 

Why the hydrogen ramp-up isn’t straightforward

As high as the expectations for the beacon of hope H₂ are, so too are the challenges associated with it. Hydrogen is only a success story if it is available, affordable, and reliably transportable. 

The biggest hurdle currently is infrastructure: While an important cornerstone has been laid with the establishment of the hydrogen core network – the so-called "hydrogen motorway" – it will still take some time before producers, importers, storage facilities, and consumers are comprehensively connected, as the entrances and exits to the motorway are currently still missing. Added to this are the costs: hydrogen is currently significantly more expensive than fossil alternatives. At the same time, Germany will not be able to cover its needs solely through domestic production and will be dependent on imports. 

Without available infrastructure, sufficient quantities, and competitive prices, many companies cannot switch their processes to hydrogen. Investments fail to materialise, and the hydrogen ramp-up proceeds sluggishly. Political framework conditions are therefore decisive: less bureaucracy, competitive regulation, and start-up financing for infrastructure are needed to turn hydrogen from a beacon of hope into a success story.

Latest DIHK hydrogen study shows the way

The hydrogen market ramp-up is still lagging behind expectations. The crucial question is: How can we accelerate? This is precisely where the new DIHK study "Milestones for a Successful Hydrogen Ramp-Up by 2040" comes in. It makes clear that Germany must not waste any time in establishing a hydrogen economy.

The central finding: The market ramp-up is not failing due to a single bottleneck. Rather, there is a simultaneous lack of economic viability, regulatory clarity, reliable demand, and sufficiently developed infrastructure. While companies recognise the strategic importance of hydrogen, they often cannot yet justify the transition economically or secure it contractually. Investors hold back, projects are delayed, supply and demand wait for each other.

Companies want to act, politics must help

To get the ramp-up back on track, the study outlines three priorities:
 

1. Laying the groundwork: By 2030, the foundations must be laid. This includes simpler and more practical rules for green hydrogen, clarity on network charges, and the accelerated development of storage facilities in the short term. As a transitional solution, the study also suggests a book-and-claim system to enable producers and consumers to connect even before the network is fully deployed. Here, proofs of origin for renewably generated energy carriers are traded and credited independently of their physical transport.

2. Realistic and reliable long-term target: Companies will only invest in new technologies if they have planning security. Therefore, the study recommends a transparent hydrogen roadmap for the coming years. This should provide clarity, particularly about infrastructure development. 

3. Driving market development: By the mid-2030s, bridges to a functioning market must be built. For this, regional distribution networks, tailored funding instruments, and better conditions for investment are particularly needed.

Companies are ready, the challenges are known. Now the right course must be set. Whether the hydrogen ramp-up succeeds will depend on speed, reliability, and pragmatism.