Germany's hydrogen expansion faces significant obstacles due to a substantial gap between planned projects and final investment decisions, according to E.ON, the country's primary energy utility.
On Wednesday, E.ON warned that national targets for hydrogen expansion are now only theoretically achievable.
Although the planned capacity for hydrogen generation by 2030 has surpassed 10 gigawatts (GW), suggesting Germany could meet its expansion targets by the decade's end, final investment decisions were made for only 16 of 88 projects as of February 2024.
An E.ON analysis of data from the Institute of Energy Economics at the University of Cologne found that these projects had a total hydrogen generation capacity of 0.3 GW.
"Germany is only at the beginning of a long road to hydrogen ramp-up," said Gabriel Clemens, managing director at E.ON, emphasizing the need for faster expansion.
While the European Union (EU) has provided more legal certainty regarding the definition of renewable hydrogen, E.ON highlighted uncertainties related to certification and crediting, stating that insufficient funding and strict requirements further hinder investment.
The EU must significantly accelerate its expansion to achieve its hydrogen targets. According to a study published by Strategy& at PwC on Monday, the bloc would need to add 120 GW by 2030, a twenty-fold increase from the current pace.
The study states that China is "ahead of the game" in implementing hydrogen expansion, with plans to increase electrolyzer capacity by 3.3 GW in 2024 alone, an equivalence to the entire volume under construction or financed in Europe last year.
Editor:Leo
