The German government has stated that hydrogen is necessary for reaching climate targets. But amid high costs it is loosening its ambitions for green hydrogen.
Yet many green hydrogen companies in Germany are calling for more government support to domestic industries and energy stability in competition with China, the world’s powerhouse of green hydrogen production.
Chinese companies account for almost 60% of the world’s capacity to manufacture electrolysers.
Overall, Ivana Jemelkova, CEO of the industry group Hydrogen Council, admits that demand for green hydrogen is not in line with the very high expectations of five years ago.
In the last 18 months, 52 low-carbon and renewable hydrogen projects were cancelled, she says. “That’s a lot of bad news.”
The project cancellations, delays and bankruptcies continue to mount.
For instance, in May 2025, the Norwegian renewable energy company Statkraft decided to stop developing new green hydrogen projects, due to market uncertainty. A spokesperson says that the company will focus on fewer technologies going forward.
But “while some of the individual trees may be falling…the forest, as such, is really growing,” Ms Jemelkova believes. “It’s not hype anymore. But it’s not doom and gloom.”
For the German companies standing ready to produce, store and move green hydrogen, it’s now crunch time. They can’t wait any longer for a supportive market, some say.