Energy of the Future - Where and how Germany imports hydrogen
Hydrogen is the great hope for the climate-friendly transformation of the economy in Germany. A large part of it must be imported by Germany - through pipelines or ships. The specifics of how this should be done are outlined in a strategy for hydrogen imports. The cabinet is set to decide on this today.
A "sustainable, stable, secure and diversified" supply with sufficient hydrogen and hydrogen derivatives is in the strategic interest of Germany, according to the strategy. This should also be a "signal" to the German economy for a reliable supply with sufficient quantities of hydrogen.
Significance of hydrogen
Above all, "green" hydrogen is expected to play a key role in making Germany climate-neutral by 2045. Hydrogen is to be the basis for the conversion to climate-neutral processes, especially in the steel and chemical industry. Hydrogen is also intended to be used, for example, in shipping or heavy transport, as an alternative to electrification.
"Green" hydrogen is produced using electricity from renewable sources such as wind turbines and photovoltaic systems. This should help significantly reduce CO2 emissions. In addition, there is also "blue" hydrogen, which is produced from fossil fossil fuel sources.
Demand for hydrogen
The demand is immense. The federal government expects a hydrogen and hydrogen derivatives demand for Germany in 2030 to be between 95 and 130 Terawatt-hours. The hydrogen demand is expected to continue to increase, reaching approximately 360 to 500 Terawatt-hours for hydrogen and 200 Terawatt-hours for hydrogen derivatives by 2045. This is dependent on factors such as price development and hydrogen availability. Demand is expected to be particularly high in the steel industry, the basic chemicals industry, in mobility and logistics, and at power plants.
For comparison: In 2023, renewable energies generated around 251 Terawatt-hours of electricity. In 2022, private households consumed around 678 Terawatt-hours of energy, which represented an approximately 25% share of total final energy consumption.
High import requirement
A significant portion of Germany's hydrogen demand will have to be covered by imports from abroad in the medium and long term - already anticipating around 50 to 70% by 2030, as stated in the strategy. "Germany will thus become one of the world's largest hydrogen importers in the future."
In the initial phase, the import strategy will not be limited to "green" hydrogen but will initially prioritize the import of carbon-lean hydrogen and its derivatives in order to ensure a reliable supply of sufficient quantities of hydrogen as early as possible. Direct financial support for hydrogen production will focus on "green" hydrogen and its derivatives - such as ammonia and methanol.
In Germany, numerous electrolysis plants are planned to be built, which will primarily produce "green" hydrogen. This requires a lot of electricity, which is to increasingly come from renewable sources such as wind and solar.
Where exactly the hydrogen will be imported from
Plans call for the parallel development of import infrastructure for pipeline and ship transport. In the case of pipeline transport, existing gas pipelines are also to be converted, which, according to the strategy, can lead to cost savings. Imports via pipelines are primarily planned from Europe. "It is expected that a significant portion of the hydrogen demand will be met through pipelines."
Imports via pipelines and by ship
At least four pipeline-bound so-called import corridors are planned: North Sea, Baltic Sea, Southwest Europe, and Southern Europe. Along these corridors, cooperation with the respective neighboring countries is to be built and deepened, as stated in the strategy.
The first pipeline that crosses a border is planned to be between Germany and Denmark, it could start operating at the end of 2028. From 2030, a pipeline for hydrogen imports from Norway is possible, as well as the construction of a hydrogen pipeline between Germany and Great Britain is being tested. In addition, the Southern Corridor is planned to be a direct and mainly converted natural gas pipelines connection between Algeria, Tunisia, Italy, Austria, and prospectively Switzerland to Germany.
Ship transport is planned to enable hydrogen imports from regions that cannot be connected by pipeline for technical and economic reasons. Planned onshore terminals at the German coasts for LNG imports are designed to allow hydrogen derivatives to land after LNG use.
Suppliers
The federal government has already concluded numerous bilateral hydrogen cooperation agreements - among them are countries like Australia, Chile, Great Britain, Namibia, Saudi-Arabia, South Africa, the United Arab Emirates. In many of these countries, there is great potential for example for the expansion of solar energy. Countries like Saudi-Arabia are, however, considered difficult partners due to human rights issues.
In terms of development and emerging countries, the strategy states that the development of hydrogen markets goes hand in hand with opportunities for the development of local value chains and qualified jobs. The federal government advocates for the observance of environmental, safety, and social standards.
Building a core network
For transport in Germany, a hydrogen "core network" is planned to be established step by step by 2032. Planned are pipelines with a total length of 9,666 kilometers. Large consumption centers, storage, and import points are to be connected. The investment costs, according to the pipeline network operators, are around 20 billion Euros.
- The German steel industry, a significant consumer of energy, sees hydrogen as a potential game-changer for becoming climate-neutral.
- The federal government's strategy for hydrogen imports highlights Germany's future role as one of the world's largest hydrogen importers.
- To meet the rising demand for hydrogen and its derivatives, Germany will rely on both pipeline and ship imports from various suppliers, including countries like Denmark and Norway.
- The steel industry, along with mobility and logistics, is expected to have a substantial share of Germany's hydrogen demand, making efficient and reliable transportation crucial for its future.
- In light of the potential for CO2 reduction, Germany aims to prioritize importing 'green' hydrogen, produced using renewable energy sources, but will also consider carbon-lean hydrogen and its derivatives in the interim.
- The development of hydrogen markets in emerging countries, as highlighted in the strategy, presents opportunities for local value creation and job growth, along with the observance of environmental, safety, and social standards.
- To enable hydrogen imports from regions not served by pipelines, ship transport and onshore terminals at German coasts will be essential components of Germany's hydrogen logistics strategy in the future.
