BMWK outlines its plan for hydrogen storage

17.04.2025

Source: E & M powernews

In a white paper, the Federal Ministry for Economic Affairs and Energy (BMWK) sets out the conditions for the hydrogen storage market of the future - and sees a great need for action.

The White Paper now presented by the Ministry of Economic Affairs describes how Germany can meet the growing demand for hydrogen storage by 2045 and what political and regulatory framework is needed to achieve this. The BMWK's text is based on a broad consultation on the basis of the previously published Green Paper. In it, the ministry evaluates scenarios from the Institute of Energy Economics at the University of Cologne (EWI) and the Energy Storage Initiative (Ines), among others.

According to these scenarios, the demand for storage in Germany is growing considerably: while between 2 and 7 billion kWh will be required by 2030, this figure could be as high as 80 billion kWh by 2045, according to the ministry. Across Europe, the authors of the paper estimate the demand to be up to 161 billion kWh by 2050.

The ministry cites the increasing use of hydrogen as the main driver - firstly in industry and secondly for reconversion into electricity in power plants. Hydrogen storage makes it possible to store surplus energy from wind and sun over longer periods of time - for example, seasonal surpluses from the summer for the winter. According to the White Paper, this is a key component of a reliable energy supply.

Particularly good geological conditions in Germany

According to the paper, Germany has particularly good geological conditions for hydrogen storage and could therefore also play a central role within Europe. Salt caverns and above-ground storage facilities, such as pressurized or liquid hydrogen plants, are seen as the backbone for short-term applications.

The BMWK sees significant potential in the conversion of existing natural gas and crude oil storage facilities. Depending on the design, these could cover up to 50 percent of storage requirements by 2040. The ministry's assessment is that it is technically possible to convert salt caverns in six years, while new constructions can take up to twelve years.

The BMWK sees an urgent need for action to align the storage infrastructure with the future demand for hydrogen. In the Ministry's view, this includes faster approvals, market-oriented regulation and targeted incentives on the demand side.

Integration into a European network necessary

The White Paper defines a competitively organized storage market as a model. Technological diversity and decentralized storage structures offer good conditions for a market environment. In order for this market to develop, clear but limited regulatory guidelines are required. These should create investment security without hindering innovation.

The BMWK also emphasizes that uncertainties could slow down investments, especially during the market ramp-up. The ministry therefore advocates targeted support for the hydrogen demand side in order to create a reliable market environment for storage projects. However, such measures would have to be reviewed on an ongoing basis and adapted to technological and economic developments.

Another recommendation from the white paper is the integration of Germany into a European hydrogen storage network. The development of cross-border infrastructure, for example via the "European Hydrogen Backbone" project, could increase security of supply and leverage economies of scale. Common standards and a harmonized regulatory framework are prerequisites for a future internal market for hydrogen storage to function.

In its White Paper, the BMWK also recognizes the importance of continuous research and technological innovation. This is the only way to increase the efficiency of storage and ensure Germany's competitiveness as a business location. According to the ministry, a combination of investment, clear regulation and European cooperation is needed to successfully ramp up the hydrogen economy.

The 64-page "White Paper on Hydrogen Storage" can be downloaded from the BMWK website.

Author: Davina Spohn