The report, co-commissioned by German utility Thüga, would consider the benefits of installing electrolysers that use existing resources to produce green hydrogen, either centrally or close to customers, to provide relief where there are power grid bottlenecks.
The working hypothesis is that this would stimulate the domestic hydrogen market, benefiting both the electricity and hydrogen industries.
E.on said in its biannual H2-Bilanz report that the ramp-up of the hydrogen economy in Germany is “well underway − but only on paper”. It complained of a large discrepancy between planned projects and final investment decisions.
An upward trend in announced hydrogen plans had “intensified somewhat”, rising from 8.7GW in August 2023 to 10.1GW in February 2024. But many remain “theoretical for the time being”, the report said.
Germany has a goal of installing 10GW of electrolysis capacity by 2030. Of 88 announced projects, a final investment decision has only been made for 16 projects totalling 300MW.
Although the EU’s ‘delegated acts’ of June 2023 on the definition of renewable hydrogen had led to greater legal certainty overall, E.on said that uncertainties remain on certification and crediting of renewable hydrogen.
Funding is still insufficient, the company added, and strict conditions and delayed funding commitments are further barriers to investment.
E.on complained of insufficient transport and storage infrastructure. It welcomed a recent agreement on the financing of the hydrogen core network but said “it remains to be seen whether the financing conditions are attractive enough for potential investors”.
“Germany is only at the beginning of a long road to hydrogen ramp-up,” said Gabriël Clemens, managing director of E.on Hydrogen.
“The clear upward trend in the electrolysis capacity planned by 2030 since the first H2-Bilanz was compiled looks good in theory. In practice, we are still a long way from our target.”
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