Hydrogen demand in Germany to be driven by industry and transport, with the energy sector joining after 2040

Germany will need more hydrogen in the coming years than previously expected. According to the National Hydrogen Council, hydrogen consumption in Germany is expected to reach 94 to 125 TWh in 2030 and then rise to 620 to 1 288 TWh by 2045. 

Hydrogen produced using electricity from renewable sources is considered a key element in decarbonizing the energy sector and industry. Germany is one of the countries betting heavily on this fuel. It plans to use hydrogen in industry, transport, heat production and, for example, as fuel for backup and peaking gas-fired power plants.

Industry to lead demand initially

According to the country’s National Hydrogen Council, hydrogen consumption in Germany is expected to reach 94 to 125 TWh in 2030, with manufacturing accounting for the largest share of demand (56 to 82 TWh).

"If we do not want to end up at the bottom of the table among industrialized countries, we must finally make progress in developing the hydrogen economy," said Hydrogen Council member Uwe Lauber, who is also managing director of combustion engine and turbine supplier MAN Energy Solutions.

Industry is expected to drive hydrogen demand in Germany until 2040, when total demand is estimated at 302 to 387 TWh, of which 167 to 250 TWh is expected to come from industry. The rest of demand is expected to come from transport.

The energy sector will join after 2040

The hydrogen market in Germany is expected to change significantly after 2040, when demand for hydrogen in the heating and power sectors is expected to gradually take off.

Of the estimated total demand of 620 to 1 288 TWh in 2045, the heating sector is expected to account for 125 to 500 TWh and power generation for 80 to 200 TWh. Demand from industry is forecast at 254 to 402 TWh that year, while the transport sector is expected to consume 161 to 186 TWh of hydrogen.

For comparison, natural gas consumption in European Union countries was around 3 500 TWh last year.