Market ramp-up of the hydrogen economy: Positioning the
industry

Production, storage and import of green hydrogen concentrated in the north

Although many regulatory framework conditions for the hydrogen economy have now been clarified and the decision for the hydrogen core network has also been made, the number of projects with investment decisions is lagging far behind plans. For this reason, eight North German networks welcomed around 250 experts from the energy sector to the 2nd North German Hydrogen Conference in Hamburg. In several panel discussions, renowned industry experts discussed the causes and solutions for this - both for production plants in Germany and for projects where hydrogen is to be imported. There are three findings from the conference for Lower Saxony.

Pragmatism before perfection

The European Union's Delegated Act on the definition of green hydrogen established strict rules on when hydrogen produced can be described as green. The experts on the podium and the guests in the room felt that these rules were too strict. Robert Habeck's proposal to postpone the deadlines, especially for additionality, was welcomed. Overall, there was a call for more pragmatism in regulation before we can meet the detailed requirements for the production of green hydrogen.

SMEs need Perspectives

In the development of the hydrogen economy, particular attention has so far been paid to major customers such as the steel and chemical industries. This is reflected in funding measures as well as in the expansion of the hydrogen core network. In Germany, we have a large SME industry that also needs to decarbonize and now needs prospects to invest in the transformation. That is why we need plans for the rededication of distribution grids in order to transport hydrogen to smaller, industrial consumers. This will play an important role in southern Lower Saxony in particular.

A storage strategy is missing 

Announced for the end of 2024, a storage strategy is no longer expected from the current German government. Yet it is of enormous importance for the future energy system. Research projects in Lower Saxony and Brandenburg have shown that hydrogen can be stored in underground salt caverns and thus make a significant contribution to security of supply in Germany. Lower Saxony has a key role to play here, as there are special geological features for potential salt cavern storage facilities, particularly on the North Sea coast. Around 70 caverns are currently used in Germany for storing oil and gas. However, these cannot be converted as long as we use them as active storage facilities. This means that we need to expand further storage facilities. In addition to the planning and approval procedures, the process of providing such a cavern takes several years. The process is also very cost-intensive. It is therefore important to make progress here in 2025 so that investments are made in new storage facilities and these are then ready in the early 30s.

More resilience for imports 

There is now a consensus that we need to diversify our energy imports and rely on several reliable partners. At the same time, the focus on imports via the seaports in northern Germany in particular must be strengthened, as the implementation of pipeline projects is sometimes lengthy and sometimes uncertain. A reliable import of hydrogen therefore relies on ports and pipelines. This is why the northern states must push ahead with the further development of the ports.

To the joint press release.

The 3rd North German Hydrogen Conference will take place in Rostock in November 2025.

Event impressions

 About the organizers:

AfW Cuxhaven

The Agency for Economic Development of the City of Cuxhaven initiates, supports and coordinates measures to promote Cuxhaven as a business location. The renewable energy sector is one of the key industries. The focus here is primarily on the offshore wind-hydrogen industry, which is a key future development in Cuxhaven. Due to its central location to the offshore wind farms, Cuxhaven has developed into one of the priority locations for the offshore industry - the so-called "German Offshore Industry Center". www.afw-cuxhaven.de

BIS

The business development agency BIS is a service provider and partner for all companies that want to operate, grow, restructure or relocate in Bremerhaven. Among other things, BIS provides support with expansion projects, funding projects and financing, advice and assistance with site searches and relocations as well as infrastructure development and implementation. The topics of offshore wind, sector coupling and green hydrogen are an integral part of Bremerhaven as a science location. www.bis-bremerhaven.de

EEHH

The Renewable Energy Hamburg Cluster is an industry network of around 250 companies, universities and institutions from the renewable energy sector and the hydrogen economy in the Hamburg metropolitan region. The cluster offers stakeholders from business, science and politics a common platform. The cluster's work focuses on onshore and offshore wind, solar, renewable heat, sector coupling and green hydrogen. www.eehh.de

EE.SH

The Renewable Energy Network Agency Schleswig-Holstein EE.SH is one of six strategic innovation clusters in the state of Schleswig-Holstein. The EE.SH team supports companies in Schleswig-Holstein's renewable energy sector in the implementation of innovation and transformation projects. A particular focus is on the implementation of the northern German hydrogen strategy. www.ee-sh.de

NWN

The Lower Saxony Hydrogen Network (NWN) is the central point of contact for hydrogen in Lower Saxony. The NWN supports and advises the various players from politics, business and science in order to promote the development of the hydrogen economy in Lower Saxony. www.wasserstoff-niedersachsen.de

WAB

WAB, based in Bremerhaven, is the nationwide contact for the offshore wind industry, the onshore network in the northwest and promotes the production of "green" hydrogen from wind power. Around 250 smaller and larger companies and institutes from all areas of the wind industry, the maritime industry and research belong to the association. www.wab.net

WECMV

The Hydrogen Energy Cluster Mecklenburg-Vorpommern pools the interests of business, science and politics in order to accelerate the market ramp-up in the federal state in a targeted manner. Funded by the Ministry of Economic Affairs in Schwerin, the WECMV networks all players in the value chain from component manufacturers to end customers with the involvement of political decision-makers . www.wecmv.de

WEN

The WindEnergy Network e.V. (WEN) is the leading business network for wind energy in the north-east region with currently around 100 member companies. The network, which has existed since 2002, sees itself as a platform for the entire value chain of the industry. It focuses on onshore and offshore wind energy, maritime technologies in connection with offshore wind and the development of green hydrogen. www.wind-energy-network.de