Accelerating Germany's Hydrogen Economy: Overcoming Challenges with Concrete Steps
Key Ideas
- Association of German Engineers emphasizes the need for concrete actions to propel the hydrogen economy, citing lack of progress due to regulatory hurdles and uncertainties.
- VDI proposes 28 measures to accelerate the hydrogen expansion, including making green hydrogen more competitive and boosting industrial demand.
- Germany's target of achieving 10,000 MW green hydrogen production capacity by 2030 seems unlikely as current capacity stands at only 150 MW, with plans for 13,000 MW in the pipeline.
- Shift in focus towards blue hydrogen in the initial stages of hydrogen economy ramp-up to mitigate costs, as indicated by the recent coalition agreement and EnBW analysis.
The Association of German Engineers (VDI) has raised concerns about the slow progress of Germany's hydrogen economy, citing regulatory barriers and uncertainties hindering the sector's advancement. VDI director Adrian Willig highlighted the need for concrete steps to kickstart the hydrogen market, underscoring the current lack of pragmatic approaches in the industry. VDI's hydrogen expert, Michael Sterner, pointed out the 'chicken-and-egg' problem faced by both hydrogen producers and users, emphasizing the risks involved in purchase, supply, and revenue. To address these challenges, VDI proposed 28 measures aimed at propelling the hydrogen expansion, encompassing strategies to enhance competitiveness against fossil fuels and boost industrial demand. However, Germany's goal of achieving 10,000 MW green hydrogen production capacity by 2030 appears ambitious, with the current capacity only at 150 MW. Plans for 13,000 MW are in development, but reaching the initial target seems improbable on the current trajectory. The shift towards blue hydrogen, initially derived from fossil fuels, is seen as a cost-effective strategy during the hydrogen economy's initial phase, as suggested by the recent coalition agreement and EnBW analysis. As Germany reevaluates its approach to hydrogen, the industry awaits decisive actions to overcome existing hurdles and drive sustainable growth in the hydrogen sector.
Topics
Blue Hydrogen
Renewable Energy
Energy Transition
Engineering
Regulation
Tax Incentives
Industrial Demand
Green Gas
Coalition Agreement
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