German industry urges government to focus more on expanding hydrogen use

The German Association of Energy and Water Industries (BDEW) is urging the German government not to miss the boat on developing the hydrogen economy. BDEW chief Kerstin Andreae says the government should instead lead a European hydrogen alliance, just as France, for example, leads the nuclear alliance.

According to Clean Energy Wire, the BDEW chief noted that the new German government’s coalition agreement focuses on making Germany the first country to have a fusion reactor, but, for example, does not include an ambition to become the first country with gas-fired power plants ready to run on hydrogen.

The coalition parties have agreed in their coalition agreement to install up to 20 GW of new gas-fired power plants to ensure electricity generation during periods when output from solar and wind power plants is low. Economy Minister Katherina Reiche said in June that at least the first 5 GW should be included in a support auction by early 2026.

The Economy Ministry is still negotiating with the European Commission over state aid for these plants. An important factor in determining whether they comply with EU state aid rules is the possibility of converting them to hydrogen in the future.

“Developing the hydrogen economy is essential not only from a climate policy perspective, but also from an economic and security policy perspective,” Andreae said. In her view, Germany should lead a European hydrogen alliance like the European nuclear alliance led by France.

According to BDEW, German plans to develop the hydrogen economy have encountered a range of uncertainties, including fuel prices, regulation and the development of the necessary infrastructure. Although Germany will not be able to meet all its domestic hydrogen demand on its own in the future, the association says it should focus on reducing its dependence on fuel imports and seize export opportunities in equipment for hydrogen production and storage.