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Germany Doubles Green Hydrogen Production Target to 10GW by 2030

27 Jul 2023

Germany Sets Ambitious Target to Double Green Hydrogen Production by 2030

The German cabinet has approved a plan to double the national target for green hydrogen production by 2030 from 5GW to 10GW. The 10GW of electrolysers would produce about a million tonnes of green hydrogen annually, which is equivalent to 26-35% of Germany's projected hydrogen demand in 2030. The remaining demand will be covered by imports, and the government is developing a separate import strategy to ensure diversified import channels and avoid new dependencies.

The updated national strategy aims to accelerate the market ramp-up of hydrogen and its derivatives and increase ambition along the entire value chain. By 2030, hydrogen and its derivatives will be used in industrial applications, heavy commercial vehicles, aviation, shipping, and gas power plants that can be converted to climate-neutral gases. Hydrogen power plants will have a balancing function during times of high electricity demand and low supply of electricity from renewable energies.

The strategy also includes measures for the heating sector, the transport sector, and the financial support for emissions-intensive companies converting fossil-fuel equipment to hydrogen. The government will create a master plan for hydrogen and fuel cell technology in transport to promote the scaling of hydrogen and fuel cell vehicles and infrastructure.

Germany aims to become a leading provider of hydrogen technologies, such as electrolysers and fuel cells, by 2030. The coalition also plans to establish suitable framework conditions for the build-out of green hydrogen, including efficient planning and approval procedures, uniform standards, and certification systems.

The initial national hydrogen strategy was unveiled in 2020, and the current government had agreed on an "ambitious update" in their coalition agreement. The new strategy is seen as a far-sighted step, both domestically and internationally, and Germany aims to import hydrogen reliably and promote sustainable development in the Global South.

Vice Chancellor Robert Habeck emphasized that investing in hydrogen is an investment in the country's future, climate protection, skilled jobs, and energy supply security. The updated strategy aims to position Germany as a key player in the global hydrogen market and accelerate the transition to a sustainable, low-carbon future.

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