Imports Will Be A Cornerstone for Meeting Germany’s Hydrogen Demand

Green hydrogen will play an important role in the energy transition. In Europe, Germany is expected to become the biggest importer of green hydrogen and its derivatives, accounting for more than half of the combined hydrogen import demand across European countries. Transport of hydrogen and its derivatives will be a crucial step for meeting local demand.

Our analysis finds that:

• Where feasible, pipelines are the most economical way to transport large volumes of hydrogen. The cost of repurposed pipelines can be as low as one-third the cost of new pipelines.
• Shipping can be an option where no pipeline routes are possible and to transport hydrogen derivatives.
• Conversion is the single biggest driver of cost. Hydrogen and its derivatives should be transported in the form required by the end use to minimize conversion losses.

A German hydrogen import strategy should consider the following aspects:

• Set up European and international hydrogen partnerships to secure sufficient hydrogen supply.
• Diversify hydrogen supply countries and transport routes to increase security of supply.
• Build up and finance transport infrastructure for short- and long-term hydrogen imports to accelerate the hydrogen market run-up.
• Set and align standards and regulation for hydrogen production and transport to ensure sustainability and provide the necessary certainty for investors.
• Continue and expand hydrogen support instruments to close the financing gap for early hydrogen projects and ensure bankability.
• Support research and development on technology and innovation along the hydrogen value chain to realize rapid cost reductions.
• Support international flagship projects for green hydrogen and derivatives.

Germany’s network of Energy Partnerships and Energy Dialogues offers an ideal foundation for reinforced international cooperation on the creation of a global green hydrogen economy.

For more information, read the full report.

Key Contact:

Matthias Schimmel
Energy, Sustainability, & Infrastructure
matthias.schimmel@guidehouse.com