This article was the Topic of the Week in the KW 12 newsletter in 2025.

The energy crisis highlights a challenge for German companies in the transition towards climate neutrality: the establishment and expansion of the hydrogen market is progressing too slowly. For companies in Germany to achieve operational climate neutrality, a faster pace and clear political framework conditions are crucial. Only in this way can Germany remain competitive in the race around the hydrogen market.

Clear regulatory framework

A reliable EU legal framework is the first step. Only if "green" and "low-carbon" hydrogen (H₂) are clearly and practically defined, can green energy carriers be credited towards operational climate goals.

The strict criteria currently provided in the delegated acts of the European Commission, however, pose a significant challenge - such as the requirement for "additionality": It aims to ensure that increased demand is met with green hydrogen, meaning additional production capacities must operate with electricity from renewable sources. Such requirements not only complicate production but also the import of H₂, especially from more distant countries, since transport by ship and over greater distances must take place. However, only with extensive hydrogen imports can the urgently needed defossilization succeed.

Further directive planned

In mid-2024, the Federal Cabinet launched a Hydrogen Acceleration Act, which now has to be rolled out again after the Bundestag elections. The aim, which is fundamentally undisputed among the parties, is to quickly build a German hydrogen market and achieve ten gigawatts of domestic electrolysis capacity by 2030. The law is intended to shorten the lengthy planning and approval procedures for hydrogen infrastructures such as electrolysers, import terminals, and storage facilities. It will play a crucial role in achieving the national goal while ensuring supply security. So far, only one percent of the targeted ten gigawatts has been achieved in Germany. At least many projects are already in planning, such as a 320-megawatt electrolyser in Emden or a 128-megawatt electrolyser in Neustadt.

The EU Renewable Energy Directive (RED III) of October 2023 also provides ambitious quotas for the use of renewable energy and green H₂ in industry and the transport sector. These requirements must be implemented into national law by May 2025 - given the current political situation, this will be a major challenge.

Infrastructure for the hydrogen economy

Without a powerful infrastructure, no hydrogen market can emerge. The construction of the core network approved in October 2024 must therefore begin quickly, accompanied by coordination on regional distribution networks and European hydrogen infrastructure. Only through cross-border coordination can synergies be utilized and supply ensured.

As the largest European hydrogen importer, Germany relies on international partnerships. Existing cooperation with countries such as Brazil, Namibia, or the Middle East and Africa region must be deepened, new ones concluded. Long-term supply contracts and investments in the infrastructure of partner countries should have priority from the perspective of the German economy.

However, it also applies: A global hydrogen market requires clear rules and standards. Uniform certification systems are indispensable to create transparency and ensure that sustainably produced hydrogen is correctly credited to companies.

Key to the H₂ ramp-up

In the race for hydrogen as a beacon of hope, there is still much to be done. Currently, H₂ is too expensive for widespread use in the economy. Small and medium-sized enterprises have so far been overlooked in public funding programs. Research and development are also essential to increase the competitiveness of hydrogen technologies. Examples of such research projects include the optimization of electrolysis processes as well as the development of storage and transport technologies. And last but not least, the integration of blue hydrogen (with CO₂ capture) as well as the promotion of gaseous and liquid non-fossil energy sources contribute to diversification.