Germany's Hydrogen Import Strategy: Prioritizing Efficiency and Cost-Effectiveness
Key Ideas
  • Germany's hydrogen demand will heavily rely on imports given limited domestic production capacity, with up to 70% expected to be met through importation.
  • The import strategy prioritizes pipeline transportation and shipping ammonia as the most efficient and cost-effective methods, aiming for emission-reduction merits over color distinctions.
  • The revised national hydrogen strategy anticipates a significant increase in clean hydrogen demand by 2030, aligning with Germany's goal of achieving climate neutrality by 2045.
  • Germany's import strategy focuses on collaboration with neighboring countries and the European region, emphasizing the need for reliable infrastructure and coordinated support at the EU level.
Months after unveiling the revised national hydrogen strategy in July 2023, Germany has announced its hydrogen imports strategy, indicating a critical shift towards prioritizing efficiency and cost-effectiveness in meeting the country's hydrogen demand. With domestic production capacity unable to keep pace, Germany anticipates that a substantial portion of its hydrogen demand, up to 70%, will need to be fulfilled through imports. The strategy emphasizes the need to review clean hydrogen demand targets and prioritize emission reduction merits over color-based distinctions to ensure a timely and competitive supply for domestic consumers. Germany's ambitious clean hydrogen deployment forms a cornerstone of its climate neutrality goal for 2045, with an estimated demand surge to 95–130 TWh by 2030. Recognizing the challenges of limited clean energy capacity for production, the government projects a significant increase in imported hydrogen volumes, outlining a comprehensive framework of measures to facilitate importation. The import strategy focuses on two primary methods: pipeline transportation and shipping ammonia from regions with high hydrogen production capacities, aiming to leverage existing infrastructure for efficient importation. Cross-border hydrogen trade within Europe is envisioned through pipeline projects with neighboring countries and larger corridor pipelines from North Sea and Baltic Sea regions. Coordination at the EU level is emphasized to expedite infrastructure development and streamline import efforts. Ammonia importation is highlighted as the preferred shipping-based method, initially for direct industrial applications and future fuel use. While exploring ammonia cracking for hydrogen extraction is considered, challenges such as energy losses during conversion are noted. Alternative ship-based pathways, including methanol and e-fuels, are assessed for potential direct application benefits, while options like liquified hydrogen face energy penalties and infrastructure requirements. Overall, Germany's hydrogen import strategy underscores the nation's commitment to clean energy transitions, emphasizing collaboration with neighboring countries and efficient transport methods to secure a sustainable and competitive hydrogen supply for its evolving energy landscape.
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