Ideas for the hydrogen ramp-up

22.04.2025

Source: E & M powernews

The engineering association VDI criticizes the new German government's plans for the hydrogen ramp-up as too vague.

The Association of German Engineers (VDI) has published an impulse paper on the ramp-up of the hydrogen economy in Germany. The 60-page paper summarizes the VDI Future Dialogue, in which the topic of hydrogen was discussed by a group of experts for a year. With its recommendations for action and packages of measures, the VDI aims to provide "well-founded, practical proposals" for an accelerated hydrogen ramp-up.

Despite clearly formulated targets for the promotion of green hydrogen by the German government, too little has happened in practice so far. "This is primarily due to a lack of pragmatism and overregulation in the use of hydrogen," said VDI Director Adrian Willig at the presentation of the impulse paper.

"Although the coalition agreement contains some positive signals - including faster approval procedures - many things are still too vague. For example, the further promotion of hydrogen use and production by reducing the tax burden."

The publication highlights the challenges and measures required for the ramp-up of a hydrogen economy. "The path to a functioning hydrogen economy in Germany is ambitious," the paper states.
In order to overcome the challenges mentioned, a coordinated approach by all players along the value chain is required. The VDI Dialogue on the Future has developed two packages of measures and 28 other specific measures aimed at accelerating the ramp-up of the hydrogen economy.

The first package of measures focuses on supporting the production of green hydrogen in order to prepare for the long-term and seasonal storage of renewable energies. Key measures include the introduction of quota systems to reduce the volume risk on the producer side and "differential cost subsidies with double auctions" to reduce the revenue risk for producers and users.

The second package of measures focuses on the industrial use of hydrogen in order to achieve long-term defossilization. In particular, the volume risk on the user side is addressed through the use of low-carbon hydrogen as a bridging technology.

The VDI Dialogue on the Future generally identified several key requirements for the successful ramp-up of the hydrogen economy:

• Stable framework conditions and effective support mechanisms: a functioning legal and economic environment is essential.
• Addressing the chicken-and-egg problem: Both the volume and revenue risk must be resolved through a combination of complementary measures.
• Alignment with Germany as an industrial and technology location: The hydrogen strategy must be compatible with the long-term goals for Germany as an industrial location.
• Long-term planning security: In view of the long amortization periods, investors must also have reliable prospects beyond 2030.
• Accompanying measures: A targeted storage strategy and increased research funding are necessary to ensure the stability of the hydrogen economy and increase competitiveness.
• The Dialogue on the Future of Hydrogen is a committee of renowned experts. Prof. Michael Sterner, member of the German government's National Hydrogen Council, chairs the dialog. Stakeholders across the entire value chain were brought together - including representatives from authorities, infrastructure, application and production, according to the VDI.

The "Impulses for the ramp-up of a hydrogen economy in Germany" can be downloaded from the VDI website.

Author: Stefan Sagmeister