Hydrogen: How Germany intends to meet its demand

The German government expects a demand of up to 500 TWh for hydrogen and 200 TWh for hydrogen derivatives by 2045. Up to 70 percent of this will probably have to be imported. The government has now set out how this could be achieved in a sustainable, stable, secure and diversified manner in an import strategy. It complements the previous National Hydrogen Strategy.

In addition to molecular hydrogen, various hydrogen derivatives such as ammonia, methanol, naphtha, electricity-based fuels and carrier media such as Liquid Organic Hydrogen Carrier (LOHC) come into question. It must be taken into account at an early stage that it is particularly cost-effective to use the imported derivatives as directly as possible. However, converting derivatives back into molecular hydrogen will also play an important role, according to the import strategy (PDF).

It envisages the parallel development of import infrastructures for pipeline and ship transportation; costs could be saved by converting existing natural gas infrastructure. Pipelines are particularly suitable for molecular hydrogen, while transportation by ship, rail or road is particularly suitable for hydrogen derivatives, carrier media and downstream products. Currently planned land-based LNG terminals are designed in such a way that they can land hydrogen derivatives after LNG utilization. The hydrogen supply sources are to be diversified as far as possible. To this end, the government wants to work together with partner countries, regions and international players in bilateral and multilateral forms of cooperation.

Greenpeace criticizes the fact that so-called blue hydrogen, which is produced from natural gas, is also to be imported. The resulting CO₂ would be captured and stored using CCS (carbon capture and storage). Greenpeace energy expert Mira Jäger explains that CO₂ storage is uneconomical and has not been sufficiently tested. This would allow fossil fuel companies to hold on to their climate-damaging gas business for too long. This significantly hinders the urgently needed development towards a climate-neutral economy. "Only green hydrogen is climate-friendly because it is produced entirely from renewable energies."

Basic framework of the hydrogen core network

According to the strategy, the planned German core grid will serve as the basic framework for hydrogen transportation. The transmission system operators have already applied for 9700 km of pipelines for this purpose. The network should connect electrolysers, import terminals and pipelines, industrial centers, power plants and combined heat and power (CHP) plants as well as underground storage facilities by 2032 if possible. In a second stage, the core network is to be further developed into a meshed transport network in an integrated gas and hydrogen network development plan.

The German hydrogen core network is to be connected to the emerging hydrogen networks of EU member states and neighboring countries via interconnectors and trans-European hydrogen import corridors. Infrastructure projects such as those in the "Hy2Infra" funding wave, which focus on the production, transportation and storage of hydrogen, represent the first stage in the development of a trans-European hydrogen network.

The first cross-border pipeline is to be built between Germany and Denmark and is currently being prepared. A feasibility study is currently being carried out for a pipeline between Norway and Germany, and German representatives are discussing a similar project with the UK. According to the current draft application from November 2023, the hydrogen core network envisages four German-Dutch interconnectors and one German-Belgian interconnector by 2032.

International connections

Two pipelines are currently being developed in the Baltic Sea region: An offshore pipeline through the Baltic Sea ("Baltic Hydrogen Collector") and an onshore pipeline through the Baltic States and Poland ("Nordic Baltic Hydrogen Corridor") are to establish connections between Finland and Germany. The Southwest Corridor envisages connecting Spain, Portugal and possibly Morocco with Germany via France. Here, the import strategy mentions the "H2Med" pipeline project and its connection to Germany "Hy-FEN". Hydrogen is to flow from Algeria, Tunisia, Italy and Austria to Germany, largely via rededicated natural gas pipelines.

The import strategy also includes helping to develop the international hydrogen market. In Germany, therefore, demand is to be boosted with support instruments and incentive systems. To this end, framework conditions are to be established and planning security created. The hydrogen ramp-up also requires sustainability standards and transparency regarding the properties of the hydrogen products traded, the strategy also states. The Renewable Energy Directive and the EU's Gas and Hydrogen Single Market Directive are decisive here.

The German government sees a particular need for hydrogen in the steel industry, which currently operates its blast furnaces with coke. Instead, sponge iron can be produced in direct reduction plants, which can then be further processed into steel products. In the basic materials and petrochemical industries, hydrogen is already being produced locally using steam reforming and used directly as a chemical raw material. Replacement demand exists here for petrochemical base materials, which are currently produced from naphtha by steam cracking, and as a fuel gas for high-temperature processes. The import strategy lists shipping, air and heavy-duty road transport as further examples of hydrogen demand. Research and support is to be provided in all these areas.

(anw)