A new study conducted by the Institute of Energy Economics at the University of Cologne for E.ON and Thüga Group highlights the potential benefits of hydrogen electrolysers in Germany's energy system. The report suggests that by strategically placing electrolysers of varying sizes in different regions based on factors like demand for hydrogen and regional renewable energy potential, the entire energy system can benefit. Smaller electrolysers under 10MW capacity are seen as particularly beneficial, especially in areas with high hydrogen demand and renewable energy potential like the Dithmarschen region in Schleswig-Holstein and the central German chemical triangle. As demand for hydrogen grows towards 2040, the study recommends expanding the use of electrolysers across various regions, emphasizing the importance of system-compatible site selection. E.ON Hydrogen's Managing Director notes that these electrolysers can enhance system flexibility, prevent bottlenecks, and reduce system costs by connecting renewable energy plants. However, the report points out that current projects in Germany may not fully consider location-based benefits. To address this, the report suggests funding criteria that prioritize overall system benefits and sector needs. Factors considered in the study include renewable energy potential, grid infrastructure, hydrogen transportation, storage facilities, and land availability.