Germany's Hydrogen Strategy: A Reality Check Needed
Berlin, Thursday, 30 October 2025.
Germany’s hydrogen economy struggles with lagging supply and demand, prompting calls for a strategic overhaul to meet climate goals. The urgency? It’s not just about plans—it’s about action.
The Current State of Germany’s Hydrogen Strategy
Germany’s hydrogen economy is facing significant challenges as both supply and demand fall short of expectations. The Federal Court of Auditors has highlighted these deficiencies, stating that the ramp-up of hydrogen production is not proceeding as planned. This situation necessitates a thorough revision of the current strategy to realign with Germany’s ambitious climate goals [1].
Reasons Behind the Lag
Several factors contribute to the slow growth of Germany’s hydrogen sector. Key projects in industries like green steel have not materialised as expected, affecting demand for hydrogen. Additionally, the current hydrogen network is oversized, which could become a financial burden if not optimally utilised [1].
Financial Implications
The financial impact of this sluggish progress is concerning. As long as hydrogen remains uncompetitive in price, the government might have to continue subsidies, straining federal finances further. The auditors recommend a ‘reality check’ to assess the feasibility of achieving sustainable hydrogen production without ongoing state support [1].
The Need for Strategic Revision
To address these issues, a fundamental revision of the National Hydrogen Strategy is needed. The strategy should include realistic timelines and investment plans to ensure hydrogen becomes price-competitive and widely available. This revision aligns with the broader energy transition reality check that the economy ministry is conducting [1].
Looking Ahead
The future of Germany’s hydrogen economy hinges on strategic partnerships and technological advancements. Companies like Plug Power are demonstrating how infrastructure development can support hydrogen production and distribution. Their projects in the United States serve as benchmarks, showcasing the potential for similar initiatives in Germany [2].