Updated German hydrogen strategy includes target for hydrogen & ammonia “sprinter” power plants

45-90 TWh of hydrogen imports required by 2030

Germany’s Federal Ministry for Economic Affairs and Climate Action forecasts that hydrogen demand in the country could more than double between now and 2030. This increase will need to be met with imports, necessitating the development of a national Hydrogen Import Strategy. After 2030 this demand skyrockets, with the electricity sector alone accounting for 80-100 TWh of hydrogen demand in 2045. Other features of the updated strategy include:

• increasing the domestic electrolysis capacity target from 5 GW to at least 10 GW by 2030
• new funding measures to incentivise 1GW of offshore electrolysis capacity
• connecting all major hydrogen production, import and storage centers in Germany with their relevant customers by 2030 (primarily via pipeline)
• and a stipulation that all new-build LNG import infrastructure must be “hydrogen ready”, and able to be “easily converted” for the import of hydrogen derivatives

4.4 GW of power plant auctions between 2023-26

Between now and 2026, the German government will hold auctions for the construction of 4.4 GW capacity of hydrogen/ammonia “sprinter” power plants (“Wasserstoff-Sprinter-Kraftwerke”). The generation of electricity from “pure hydrogen or ammonia” (presumably from gas turbines) will help with “balancing volatile renewable electricity generation”, and assist the decarbonisation of Germany’s national grid as more renewable energy is integrated. An additional 4.4 GW capacity of renewable energy-hydrogen hybrid power plants will also be auctioned off.