Germany has released an updated hydrogen strategy in which it projects that it will import up to 70% of the H₂ it consumes as it strives to reach net zero by 2045.

Despite doubling the country’s domestic electrolysis capacity to at least 10 GW by 2030, around 50-70% of the anticipated 95-130 TWh of hydrogen will still have to be imported, given the expected demand, particularly from industry. This is no major weakness, of course, with the strategy itself stating that a “domestic supply that fully covers demand does not make economic sense or serve the transformation processes resulting from the energy transition as a whole”.

Given the energy supply shock following the Russian invasion of Ukraine, however, German planners will be mindful of the need to diversify sources of supply, such that the removal of one source will not have an overly negative effect. Germany is already following such a strategy, with supply deals signed with Canada, Norway, United Arab Emirates and Australia, amongst others.

The strategy envisages immediate state support for up to 2.6 GW of electrolysis capacity along with €700 million for research to optimise production methods. While the strategy allows for the use of blue hydrogen, government support will be directed only towards the green variety, though some support will indirectly also support blue hydrogen.

An example of the latter will be in the construction of a network of up to 1,800 km of hydrogen pipelines across the country, which is expected to begin construction in 2027/28 as part of a European Union Project of Common European Interest.