CHBC Webinar Overview: German National Hydrogen Strategy
Covered by Sarah King, CHBC Fellow
On September 10, the California Hydrogen Business Council hosted the “German National Hydrogen Strategy” webinar. Dr. Cyriac Massué and Dr. Toni Glaser from the German Federal Ministry of Economic Affairs and Energy, and Gia Brazil Vacin and Tyson Eckerle from the California Governor’s Office of Business and Economic Development (GO-Biz), joined to provide details on the German strategy and its implementation, as well as share current progress and potential in the California hydrogen market.
Ambitious climate targets and business potential are driving opportunities for hydrogen expansion in both Germany and the United States; Germany has outlined a clear hydrogen value chain that will serve as a global example for widescale hydrogen adoption, particularly in industry, while California is leading hydrogen developments in the transportation sector.
Current annual hydrogen consumption in Germany is about 55 TWh and is mostly grey, used in refineries and chemical production. Demand for hydrogen is expected to grow to 90-110 TWh by 2030. To meet much of this demand, Germany plans to build up to 5 GW of electrolyzers for green hydrogen production by 2030, with an additional 5 GW by 2040. However, Germany is limited in its renewable energy resources due to its physical geography, and thus the country anticipates importing much of its green hydrogen to meet growing industry needs. Massué and Glaser acknowledged this shortfall in generation capacity, and emphasized Germany’s foreseeable role as a hydrogen technology exporter while fostering international cooperation to satisfy national and international hydrogen needs.
The German hydrogen strategy relies on an integrated approach that improves generation technologies, engages with transportation and industry stakeholders, establishes reconversion and construction of essential infrastructure, and continues research, education, and innovation. Notably, Germany does not see a great role in hydrogen blending with existing gas infrastructure, but is rather focusing on building dedicated hydrogen pipelines to facilitate the growing hydrogen economy. Massué and Glaser emphasized the overwhelming government and public support for expanding green hydrogen production throughout the country.
California continues to see growth in the hydrogen market, with most of its activity in light-duty vehicles. While the state leads the U.S. and world in vehicle development, lack of widescale infrastructure continues to inhibit market growth. Currently, 42 hydrogen refueling stations are open to the public, with 16 additional stations in development. California is expanding its focus to include heavy-duty transportation, and currently operates 48 fuel cell electric buses, 4 bus refueling stations, and 3 heavy-duty truck stations. Vacin highlighted the importance of increasing the scale of light-duty hydrogen vehicle adoption in order to drive down the higher costs of heavy-duty transport.
The panelists ended with a conversation on future investments into hydrogen production, specifically with regards to Germany’s commitment to €2 billion in foreign project investments. While the Ministry for Economic Affairs and Energy continues drafting guidelines and criteria for foreign project funding, there is great potential to leverage private investment and establish cooperation between Germany, California, and other budding hydrogen markets across the United States and Europe.
The webinar recording is available here: https://vimeo.com/456676232
The presentation file is available here: https://californiahydrogen.org/wp-content/uploads/2020/09/CHBC-German-National-Hydrogen-Webinar-Slides_FullDeck.pdf