Germany adopts key strategy for importing hydrogen and its derivatives

The German government has adopted a long-awaited strategy for importing hydrogen and its derivatives. The strategy envisages imports of 45 to 90 TWh per year in 2030, followed by further growth. The German Ministry for Economic Affairs and Climate Action reported.

Germany is one of the countries planning to rely heavily on hydrogen in its decarbonisation efforts. According to its National Hydrogen Council, demand for hydrogen in Germany is expected to reach 94 to 125 TWh in 2030 and rise to 620 to 1,288 TWh by 2045. Industry is expected to drive demand initially. The power and district heating sectors are also expected to join after 2040.

As the country lacks sufficiently favourable conditions to produce such large quantities of green hydrogen, it will rely heavily on imports. These are expected to account for 50 to 70% of the required volume of this commodity in 2030. According to the Ministry for Economic Affairs, the share of imports is expected to continue rising after 2030.

"A large share of German hydrogen demand will have to be met by imports from abroad in the medium and long term. The import strategy establishes a framework for this purpose. It sends a clear signal to our foreign partners: Germany expects strong and stable demand for hydrogen and its derivatives, and is a reliable partner and destination market for hydrogen products," German Minister for Economic Affairs Robert Habeck said on the publication of the strategy.

Green and blue hydrogen and its derivatives

Like the hydrogen strategy updated last year, Germany's hydrogen import strategy does not rely solely on green hydrogen, produced by electrolysing water using electricity from renewable energy sources, but also on so-called blue hydrogen, which is produced from natural gas using carbon capture and storage technologies.

According to the published strategy, hydrogen and its derivatives are to be imported both by sea and through pipelines.

"Hydrogen derivatives are particularly suitable for transport by sea, rail or road. Shipping will allow us to import hydrogen from regions that cannot be connected by pipelines for technical or economic reasons," the ministry said.