Progress on hydrogen has been slow

September 11, 2026

Source: E & M powernews

Nationwide, only 44 of 169 hydrogen production projects—with a total capacity of 181 MW—are actually in operation. This is shown by the Dena database and the BDEW Hydrogen Monitor.

Germany’s expansion targets for hydrogen are significantly higher than what has been achieved so far. This became clear during a webinar hosted by the Gas and Hydrogen Industry Association on September 10. Experts from the German Energy Agency (Dena), Salzgitter AG, and the gas network operator Ontras Gastransport reported on the current status of production, demand, and infrastructure.

According to the Dena project database, electrolysis projects with a total capacity of 2,100 MW currently have secured funding. Numerous other projects are still in the planning stages. The German Association of Energy and Water Industries (BDEW) reaches a similar conclusion in its Hydrogen Monitor. According to the report, 169 hydrogen production projects nationwide are in various stages of development.

Of these, according to the BDEW, 44 projects with a combined capacity of 181 MW are already in operation. Another 27 projects with a total capacity of 1,271 MW are under construction or have reached a final investment decision.

BDEW Chief Executive Kerstin Andreae sees this primarily as a financing problem. She said the ramp-up must be kickstarted now and investments secured. “In addition to infrastructure, we also need production, off-take, and investment certainty,” said Andreae. Only when these elements align in terms of timing can the planned market ramp-up take place on a larger scale.

She cites hydrogen contracts for difference (CfDs) as an important tool. They are intended to bridge the cost gap between renewable or low-carbon hydrogen and what customers are willing to pay. To this end, the BDEW is calling for a separate, earmarked budget line item in the Climate and Transformation Fund of the 2027 federal budget.

Salzgitter Generates Concrete Demand

Demand already exists at Salzgitter AG, reported Cara Bien of Public & Regulatory Affairs. The steel manufacturer plans to use hydrogen as part of its SALCOS (Salzgitter Low CO2 Steelmaking) transformation program to replace carbon as a reducing agent in steel production. The company is making the transition in stages and integrating the new steel production process—which uses electricity and hydrogen instead of coke—into its existing steelworks.

By the mid-2030s, the company aims to reduce CO2 emissions from its steel production by more than 95 percent. The total investment for the transformation amounts to approximately 2.7 billion euros.
Salzgitter AG expects SALCOS to have a potential hydrogen demand of up to 150,000 metric tons per year. The procurement strategy envisions three approaches: on-site hydrogen production, supply from domestic production, and imports. A prerequisite for supply is a timely connection to the core hydrogen network, which, however, will not be available until 2029 at the earliest.

For this reason, Salzgitter is building a 100-MW electrolysis plant, Bien said. The plant is scheduled for completion in 2027 and will initially supply five percent of the required H2. In addition, the company has signed a supply agreement with EWE. Starting in 2030, 10,000 metric tons of green hydrogen per year are to be transported from EWE’s planned 320-MW electrolysis plant in Emden to Salzgitter via the core hydrogen network. The contract will initially run for seven years and will cover an additional 6.5 percent of the expected demand.

Ontras Plans European Hydrogen Corridor

Projects involving cross-border transport are also still in the development phase. Ontras Gastransport, a Leipzig-based transmission system operator, is collaborating with network operators from Finland, the Baltic states, Poland, and Germany on the Nordic-Baltic Hydrogen Corridor (NBHC).

The planned corridor is expected to stretch approximately 2,500 kilometers and connect six European countries. The goal is to achieve a transport capacity of approximately 2.7 million metric tons of hydrogen, or 91 TWh, by 2040. Commercial operation is scheduled to begin in 2033.

According to Ontras, the project has been designated a “Project of Common Interest” (PCI) and has been included in the European Ten-Year Network Development Plan. Following preliminary studies in 2024, the participating companies have now launched a comprehensive feasibility phase. A total of 6.8 million euros from the European Connecting Europe Facility (CEF) funding program has been allocated for this purpose. The feasibility phase is scheduled to be completed by the end of 2027.

The DENA database for electrolysis projects is available online.

Authors: Susanne Harmsen, Günter Drewitzky