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Germany should ensure it does not 鈥渕iss the boat鈥� on ramping up the hydrogen economy, the head of energy industry association BDEW, Kerstin Andreae, (FAZ) in an interview. While Germany鈥檚 new government stated it wanted the country to be home to the first nuclear fusion reactor in the coalition agreement, 鈥渋t would be nice if it also stated that Germany will be the first country with ten hydrogen-ready gas-fired power plants,鈥� Andreae said.

Germany鈥檚 new government has set the goal to build 20 gigawatts (GW) of new gas-fired power plants by 2030 to serve as backup for times of little wind and sunshine. These are needed to secure the country鈥檚 electricity system stability, especially in light of Germany鈥檚 coal phase out, the government argues. The economy ministry is still in talks with the European Commission regarding state aid it aims to provide to get these plants built.聽As Germany phases out fossil fuels, the plants could later undergo an extensive retrofit to run on green hydrogen, a clean fuel produced with electricity from renewables and water.

The BDEW head pointed out that next year鈥檚 federal budget did not focus enough on ramping up the hydrogen economy. 鈥淚t is short-sighted to hesitate here,鈥� she said. While Germany would not be self-sufficient for its hydrogen needs, it could focus on reducing dependencies, and seizing on export opportunities for hydrogen plants and storage facilities stemming from the country鈥檚 engineering expertise, Andreae added. 鈥淭he development of the hydrogen economy is not only necessary in terms of climate policy, but also in terms of economic and security policy.鈥�

Andreae called on Germany鈥檚 government to lead a European hydrogen alliance, , to push for hydrogen-friendly EU regulations. 鈥淕lobal demand [for green hydrogen] will be enormous, and developing our own renewable energy sources, including [green hydrogen and derivatives], will make Europe more resilient to threats and dependencies,鈥� Andreae said. 鈥淭he energy transition strengthens our sovereignty.鈥�

Germany鈥檚 plans for the ramp-up of a green hydrogen economy has run into significant uncertainties, including over the fuel鈥檚 future price, regulation, and the necessary infrastructure development, said the BDEW in a recent report.