BERLIN, Nov. 7 (Xinhua) \u2014 Germany\u2019s flagship hydrogen strategy, once seen as the\u00a0engine of its energy transition, is faltering as projects stall, costs climb, and targets slip, raising doubts about the country\u2019s clean-energy ambitions.<\/p>\n
In a recent report, Germany\u2019s Federal Audit Office said the nation\u2019s hydrogen strategy is\u00a0\u201cnowhere near meeting its goals,\u201d\u00a0adding that the industry is becoming increasingly reliant on government subsidies, a trend that could turn into a long-term burden on public finances.<\/p>\n AMBITIOUS PLAN<\/p>\n Germany launched its National Hydrogen Strategy in 2020, outlining 38 domestic measures to establish a complete hydrogen value chain, backed by 9 billion euros (about 10.37 billion U.S. dollars) in public funding.<\/p>\n The plan originally aimed to install 5 gigawatts (GW) of electrolyser capacity by 2030. A revised version released in 2023 raised that goal to at least 10 GW.<\/p>\n The federal government states on its website,<\/p>\n By 2045, Germany aims to achieve greenhouse gas neutrality,<\/p>\n<\/blockquote>\n \u00a0With the National Hydrogen Strategy, the government \u201caims to drive forward the use of climate-friendly hydrogen technologies and make a contribution at an early stage to the diversification of energy imports and hence to Germany\u2019s supply security.\u201d<\/p>\n At the core of the plan is the large-scale use of hydrogen, particularly green hydrogen,\u00a0as a substitute for fossil fuels in heavy industry. Hydrogen is categorized by its production method and associated carbon emissions as green, blue, or gray. Green hydrogen, the cleanest form, is produced using renewable electricity to split water into hydrogen and oxygen, generating no carbon emissions.<\/p>\n According to the German Renewable Energy Federation (BEE),\u00a0green hydrogen can create new growth opportunities and tens of thousands of jobs, while reducing the country\u2019s dependence on energy imports and supporting the decarbonization of high-emission sectors such as chemicals, shipping, and aviation.<\/p>\n DISAPPOINTING REALITY<\/p>\n However, actual progress has been disappointing. According to Germany\u2019s Tagesschau news program, only about 1.6 percent of the 2030 target has been reached so far, with roughly 200 megawatts of electrolyzer capacity currently under construction.<\/p>\n As more hydrogen projects are suspended or canceled, the outlook for the sector appears increasingly uncertain. <\/p>\n Felix Matthes,<\/strong> acting chair of Germany\u2019s\u00a0National\u00a0Hydrogen\u00a0Council, said:<\/p>\n The targets for the hydrogen ramp-up in 2030 will be missed by a huge margin,<\/p>\n<\/blockquote>\n Analysts say the stagnation reflects structural weaknesses. As an emerging industry, hydrogen depends on a fully developed industrial ecosystem,\u00a0from production facilities and distribution networks to end users. Yet the financial and policy foundations for that system remain fragile in Germany.<\/p>\n Matthes said that the cost of green hydrogen is \u201cfar higher than initially expected,\u201d leaving the industry caught in a \u201cchicken-and-egg\u201d dilemma: at current prices, green hydrogen offers little incentive for large industrial users. Weak demand, in turn, deters producers from building new facilities, keeping output low and prices high,\u00a0a cycle of stagnation that the sector has struggled to break.<\/p>\n The\u00a0federal\u00a0audit\u00a0office warned that the hydrogen strategy\u2019s underperformance could jeopardize Germany\u2019s climate targets and industrial competitiveness, while also threatening fiscal stability.<\/p>\n According to the office, Germany allocated around 4.3 billion euros in 2024 and more than 3 billion euros in 2025\u00a0for the hydrogen economy, mostly in corporate subsidies. The government has also pledged to continue investing several billion euros annually through 2030.<\/p>\n The\u00a0office<\/strong> said in the report, <\/p>\n The expectation that green hydrogen would soon become price-competitive has not been met, <\/p>\n<\/blockquote>\n \u201cOn the contrary, hydrogen prices are likely to remain high for the foreseeable future, making long-term state subsidies almost unavoidable.\u201d<\/p>\n Industry groups reject the auditors\u2019 pessimistic view. The BEE said the audit overlooked the strategic necessity of developing green hydrogen and the long-term benefits it promises.\u00a0The Association of German Engineers likewise argued that it is premature to judge the hydrogen strategy based solely on current costs.<\/p>\n Adrian Willig,<\/strong> director of VDI, said:\u00a0<\/p>\n Hydrogen is a technology for the future, and like any major innovation, it requires patience in its early stages,<\/p>\n<\/blockquote>\n \u201cWe shouldn\u2019t focus solely on the risks, but instead strike a balance between responsibility and foresight.\u201d (1 euro = 1.15 U.S. dollar)<\/p>\n READ<\/strong> the latest news shaping the hydrogen market at Hydrogen Central<\/a><\/p>\n![\"hydrogen](\"https:\/\/www.europesays.com\/uk\/wp-content\/uploads\/2025\/04\/1-1.png\")
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