Medium-sized companies are facing significant challenges in adopting hydrogen as a key energy source due to uncertainties about its future availability and costs. The development of hydrogen infrastructure, particularly the ‘last mile’ connections, remains a pressing concern. Germany plans to source a large portion of its hydrogen internationally, aiming for a substantial increase in production by 2030. However, logistical issues and ongoing domestic demand in exporting countries may hinder supply, raising concerns about future hydrogen scarcity.
Challenges Faced by Medium-Sized Companies in Hydrogen Adoption
Medium-sized enterprises are grappling with uncertainties surrounding the future of hydrogen as a key energy source. Many businesses feel overlooked, with numerous questions remaining unanswered. ZINQ, for instance, is tasked with achieving climate-neutral production by 2045. While hydrogen presents a promising alternative to conventional gas for fueling operations, the timeline and logistics of acquiring sufficient amounts—especially ‘green’ hydrogen derived from renewable sources—remain unclear. Entrepreneur Baumgürtel expresses concerns, stating, “It is uncertain how much electricity and green hydrogen will actually be available and at what cost.” This uncertainty poses significant challenges, as the investment decisions made today could impact the company for decades to come. Hydrogen is anticipated to play a pivotal role in our transition to a climate-neutral economy.
The Future of Hydrogen Infrastructure and Supply
Many companies in Gelsenkirchen city port are left pondering vital questions: When will hydrogen become available? What will the pricing structure look like? The anticipated hydrogen pipeline, which is nearing completion, ends just a few kilometers from the port. However, the crucial question remains—who will take charge of constructing the ‘last mile’ of this infrastructure? Baumgürtel notes that, unlike in Germany, countries like Belgium are progressing by synchronously expanding their hydrogen networks while connecting businesses with a demand for this resource.
In response to concerns raised, Federal Minister of Economics Robert Habeck acknowledged the criticism but emphasized that they are committed to developing the hydrogen core network across Germany. He stated, “We will clarify regulatory questions in the next step, allowing for the respective lines to be approved locally.” Planning for the distribution network is expected to commence in the summer of 2025.
While the German government plans to source a significant portion of hydrogen from international markets, challenges persist. Hydrogen expert Peter Wasserscheid highlights the urgency for businesses to understand future costs and supply needs. He emphasizes that trust must be cultivated to foster the success of the hydrogen economy. However, he cautions against allowing initial hurdles to undermine the overarching goal of achieving climate-neutral production.
Looking ahead, the question remains: Where will Germany source its hydrogen? By 2030, the country aims to produce at least ten gigawatts of hydrogen through electrolyzers, with expectations of up to 70% being imported. Recent agreements have been established with various nations, including Egypt, Australia, Chile, and others, to diversify hydrogen supply sources.
The federal government is eager to advance its hydrogen strategy while embracing technological innovations. However, Frank Merten from the Wuppertal Institute points out that pure hydrogen is not yet viable for shipping. This limitation means that derivatives like ammonia may be transported via ship, while pipeline imports from European nations are considered more feasible. Nonetheless, exporting countries such as France, Spain, and the Netherlands are in the early stages of building their hydrogen production capabilities, which could hinder Germany’s import efforts. With domestic demand in these countries posing significant obstacles, Merten believes that hydrogen scarcity will likely persist in the foreseeable future, regardless of the other challenges faced.