![\"hydrogen](\"https:\/\/www.europesays.com\/uk\/wp-content\/uploads\/2025\/04\/1-1.png\")
<\/a><\/p>\nSchumacher <\/strong>said at a hydrogen industry conference in Berlin<\/a>, <\/p>\n We will take another very close look at the funding framework,<\/p>\n<\/blockquote>\n \u201cWe don\u2019t want to tear everything down, but given that the hydrogen ramp-up has not worked as well as we had hoped so far, it makes sense [to modify the framework].\u201d She added that \u201cit may also make sense not to do things quite so quickly and not quite so much, and instead to ensure that what we actually do is successful.\u201d<\/p>\n Asked whether the government could introduce a feed-in tariff system<\/a>,\u00a0where producers receive a guaranteed price for the green hydrogen they supply, similar to the country\u2019s renewable support via guaranteed purchases of green electricity, Schumacher dampened expectations. The renewables support cost around 20 billion euros annually \u2013 an expense that had \u201ctraumatised\u201d some policymakers, she said. \u201cWe must propose instruments for which we can credibly demonstrate that costs are under control. Instruments that cannot guarantee this are excluded from the discussion.\u201d<\/p>\n The government would now focus on lowering overall energy system costs linked to hydrogen, Schumacher said. Electrolysers could be located strategically to help avoid electricity grid expansion, for example by making use of excess renewable electricity during especially windy periods. In turn, it could be acceptable that hydrogen production costs are slightly higher, said the official. <\/p>\n She<\/strong> added:<\/p>\n National production must serve the system,<\/p>\n<\/blockquote>\n In the fight against climate change, hydrogen made with renewable electricity is seen as a key tool to tackle emissions in hard-to-abate sectors, such as heavy industry and aviation. Germany has set out to become a global leader in the associated hydrogen technologies, and the previous government penned a National Hydrogen Strategy<\/a> to fulfil these ambitions.<\/p>\n However, an early green hydrogen hype in Germany and Europe has run into serious headwinds. Numerous projects have been cancelled<\/a>, including by German companies<\/a>. Production is expensive, transport complex, and the market trapped in a chicken-and-egg dilemma of demand and supply for the clean fuel.<\/p>\n An even higher share of imports possible \u2013 official<\/p>\n Due to better conditions for renewables, hydrogen production is set to remain cheaper in sun-rich countries. North African countries like Morocco could become key suppliers to Europe. Germany\u2019s previous government expected 50 to 70 percent of its green hydrogen to be imported by 2030. Schumacher emphasised that her ministry could place even more emphasis on imports.<\/p>\n She<\/strong> said,<\/p>\n We will focus on imports, perhaps even more so than the last government because it is more cost-effective overall,<\/p>\n<\/blockquote>\n The slow roll-out of hydrogen infrastructure is a major weakness of Germany\u2019s energy transition,\u00a0according to a recent government monitoring report<\/a>. The current government last week agreed<\/a> on a draft law to accelerate the lagging expansion of hydrogen infrastructure.<\/p>\n Hydrogen key for industry success, not just for climate action \u2013 industry<\/p>\n Industry representatives emphasised that hydrogen would be critical for Germany\u2019s businesses.<\/p>\n Kerstin Andreae, head of energy industry association BDEW<\/a>, said hydrogen should primarily be seen as an opportunity for industry that required the right policies.\u00a0<\/p>\n She <\/strong>said,<\/p>\n Can we manage to build a new scalable and exportable part of a new industrial pillar?<\/p>\n<\/blockquote>\n Mathias Koch, project manager for German hydrogen policy at think tank Agora Industry, cautioned that Germany should continue to largely focus on green hydrogen produced with renewable electricity to secure technological leadership, rather than so-called \u2018blue hydrogen\u2019 produced from fossil gas using carbon capture and storage<\/a> (CCS<\/a>).<\/p>\n Koch<\/strong>, said:<\/p>\n A widespread use of natural gas-based hydrogen with CCS<\/a> puts the European electrolyser industry in danger,<\/p>\n<\/blockquote>\n He<\/strong> said,<\/p>\n A focus on green hydrogen was needed for reasons of \u201cresilience, technological leadership and jobs,<\/p>\n<\/blockquote>\n Germany\u2019s new government has come out in favour of using CCS<\/a> to produce hydrogen, especially to guarantee sufficient availability to kickstart the market ramp-up.<\/p>\n Schumacher,<\/strong> who stressed the importance of reaching climate targets, said:<\/p>\n A pure focus on green hydrogen is not my ministry\u2019s line,<\/p>\n<\/blockquote>\n She<\/strong> said, adding these also had a role to play in bringing prices down,<\/p>\n Green hydrogen is one component, blue hydrogen can be another, or low-carbon in general,<\/p>\n<\/blockquote>\n READ<\/strong> the latest news shaping the hydrogen market at Hydrogen Central<\/a><\/p>\n\n
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