Germany Embraces Green Hydrogen Imports to Accelerate Climate Neutrality Goals

Germany, a key player in the global push for climate neutrality, has reaffirmed its commitment to importing significant quantities of green hydrogen in its updated national hydrogen strategy. As part of its ambitious plan to achieve climate neutrality by 2045, Germany recognizes the pivotal role of hydrogen and PtX fuels in transforming sectors that are challenging to electrify directly, including refineries, steel and chemical industries, heavy road transportation, aviation, and shipping.

The initial German hydrogen strategy was published in 2020 and has now undergone further enhancements to increase ambition across various fronts. Among the notable updates is the decision to double the target for domestic electrolysis capacity, raising it from 5GW to a minimum of 10GW by 2030. This move signifies Germany’s intention to boost its domestic hydrogen production. However, the strategy also emphasizes the substantial demand for importing green hydrogen and PtX fuels, which are projected to account for 50-70% of total hydrogen consumption, encompassing liquid PtX fuels like e-methanol and e-ammonia.

With its geographical proximity to the German market, Denmark emerges as a natural partner to fulfill Germany’s green hydrogen needs. By establishing a hydrogen pipeline connecting Denmark and Germany, the two nations can foster a robust collaboration to address their energy requirements sustainably. Michael Madsen, Head of Power-to-X at Green Power Denmark, highlights Denmark’s advantageous position with abundant wind and solar resources and a roster of companies ready to supply green hydrogen and other green fuels to Germany and the broader European market.

However, realizing the potential of green hydrogen and PtX in Denmark hinges on decisive actions by policymakers. Speed is of the essence in developing the hydrogen infrastructure alongside new offshore wind farms. The agreement on cross-border hydrogen infrastructure between Denmark and Germany slated for 2028, necessitates a swift presentation of the Danish government’s hydrogen infrastructure financing proposal before the end of 2023. This certainty is vital for offshore wind farm bidders in the North Sea, as it determines their ability to sell wind-generated power as hydrogen.

Despite Germany’s emphasis on green hydrogen, its updated hydrogen strategy also opens the door to blue hydrogen. Blue hydrogen is produced using fossil gas, with the resulting CO2 captured and stored. While Denmark remains staunchly committed to green hydrogen—produced exclusively with renewable energy from wind turbines and solar cells—other European countries, such as France, are exploring alternatives like pink hydrogen, generated using electricity from nuclear power.

Establishing criteria for low-carbon hydrogen across the EU is crucial to ensure a level playing field and prevent the greenwashing or prolongation of the fossil gas industry. This requires considering emissions throughout the entire production chain, including the methane emissions associated with extracting gas for blue hydrogen production.

As the world grapples with the imperative of decarbonization, Germany’s updated hydrogen strategy and its openness to importing green hydrogen signal a significant step forward in the transition to cleaner energy sources. Collaborative efforts between Germany and Denmark, focused on green hydrogen and renewable PtX fuels, promise to propel Europe closer to its climate goals and forging a more sustainable energy landscape.