The National Hydrogen Strategy - BMBF
←
→
Page content transcription
If your browser does not render page correctly, please read the page content below
Imprint Publisher Federal Ministry for Economic Affairs and Energy Public Relations Division 11019 Berlin www.bmwi.de Current as at June 2020 Design iStock / smirkdingo / title You can obtain this and other brochures from: Federal Ministry for Economic Affairs and Energy, Public Relations Division Email: publikationen@bundesregierung.de www.bmwi.de Central ordering service: Tel.: +49 30 182 722 72 Fax: +49 30 181 027 227 21 This brochure is published as part of the public relations work of the Federal Ministry for Economic Affairs and Energy. It is distributed free of charge and is not intended for sale. The distribution of this brochure at campaign events or at information stands run by political parties is pro hibited, and political party-related information or advertising shall not be inserted in, printed on, or affixed to this publication.
Content Content 1 I. Recognising the potential and harnessing the opportunities of hydrogen ..................................................................................... 2 II. The National Hydrogen Strategy – goals and ambitions ....................................................................................................................................................................... 5 Assuming global responsibility . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5 Making hydrogen a competitive option . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5 Developing a domestic market for hydrogen technology in Germany, paving the way for imports .................................................................................................................................................................................... 5 Establishing hydrogen as an alternative for other energy sources . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6 Making hydrogen a sustainable base material for the industrial sector . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6 Enhancing transport and distribution infrastructure . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6 Fostering science, mobilising skilled labour . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7 Shaping and accompanying transformation processes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7 Strengthening German industry and securing global market opportunities for German firms . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7 Establishing international markets and cooperation for hydrogen . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7 Regarding global cooperation as an opportunity . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8 Building up and securing the quality assurance infrastructure for hydrogen p roduction, transport, storage and use, and building trust . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8 Improving the policy environment and addressing current developments on an ongoing basis . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8 III. Hydrogen: status quo, fields of action, and markets of the future ....................................................................................................................... 9 The status quo and expected trends for hydrogen and its downstream products ............................ 9 Hydrogen as a collaborative European project . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10 International trade . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11 Transport and distribution infrastructure in Germany and abroad . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11 Research, education, innovation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12 IV. Governance for the National Hydrogen Strategy ................................................................................................................................................................................................. 14 Cooperation between the Federal Government and the Länder . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15 V. Action Plan: steps necessary for the National Hydrogen Strategy to succeed ................................................................ 16 Hydrogen production . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16 Fields of application . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 17 VI. Glossary ............................................................................................................................................................................................................................................................................................................................................................................................... 28
2 I. Recognising the potential and harnessing the opportunities of hydrogen The energy transition – which represents the efforts # Hydrogen is an energy storage medium that undertaken and results achieved on renewable energy allows for renewable energy to be stored in a sup- expansion and energy efficiency – is our basis for a ply-based and flexible manner and therefore helps clean, secure and affordable energy supply, which is balance energy supply and demand. This makes essential for all our lives. By adopting the 2030 Climate hydrogen an important ingredient of the energy Action Plan, the Federal Government has paved the transition. way for meeting its climate targets for 2030. Its long- term goal is to achieve carbon neutrality in line with # Hydrogen plays a key role for sector coupling. In the targets agreed under the Paris Agreement, which areas where renewable electricity cannot be used seeks to keep global warming well below 2 degrees directly, green hydrogen and the products derived and if possible below 1.5 degrees. In addition, Germany from it (power-to-X) open up new ways to decar- has committed itself, together with the other European bonise our energy supply. Member States, to achieving greenhouse gas (GHG) neutrality by 2050. Apart from phasing out coal-fired # Already today, many chemical and industrial pro- power, for which Germany has already taken the rel- cesses depend on the use of hydrogen. For exam- evant decisions, this means preventing emissions ple, it is used as a base substance for producing which are particularly hard to reduce such as process- ammonia. Going forward, the fossil-based hydro- related GHG emissions from the industrial sector. gen currently used for this is to be replaced by green hydrogen. In addition, hydrogen in its pure In order for the energy transition to be successful, form can be used to decarbonise a wide range of security of supply, affordability and environmental industrial production processes for which cur- compatibility need to be combined with innovative rently no decarbonisation technologies are avail and smart climate action. This means that the fossil able. For example, in order to allow for the GHG- fuels we are currently using need to be replaced by free production of primary steel, hydrogen is alternative options. This applies in particular to gas currently considered to be the most promising eous and liquid energy sources, which will continue solution for replacing hard-coal coke. to be an integral part of Germany’s energy supply. Against this backdrop, hydrogen1 will play a key role # Hydrogen will be required if certain types of car- in enhancing and completing the energy transition. bon emissions from the industrial sector such as process-related emissions from the cement indus- # Hydrogen can be used as an energy source. For try are to be eliminated in the long term. By cap- example, it can be used in fuel cells to drive for- turing carbon emissions from the industrial sector ward hydrogen-powered transport or as a means and combining these with hydrogen, useful chem- to produce synthetic fuels. icals can be produced (CCU) and new value chains for the basic chemicals industry opened up. In order to make hydrogen a key element of our decar- bonisation strategy, our entire value chain – from 1 The Federal Government considers only hydrogen that has been produced using renewable energy (green hydrogen) to be sustainable in the long term.
I. RECOGNISING THE POTENTIAL AND HARNESSING THE OPPORTUNITIES OF HYDROGEN 3 technologies, generation, storage, infrastructure and 600 million euros will be provided between 2020 and use, including logistics and important aspects of qual- 2023 to foster the ‘Regulatory Sandboxes for the ity assurance – need to be looked at. Energy Transition’, which help speed up the transfer of technology and innovations from the lab to the In order for Germany to become GHG-neutral and market, not least for hydrogen solutions. As part of meet its international obligations under the Paris Germany’s decarbonisation programme, funding is Agreement, hydrogen needs to be established as a provided for investment in technologies and large- decarbonisation option. The Federal Government scale industrial facilities which use hydrogen to considers only hydrogen that has been produced decarbonise their manufacturing processes. More using renewable energy (green hydrogen) to be sus- than 1 billion euros will be provided for this between tainable in the long term. The Federal Government 2020 and 2023. There are also programmes that pro- therefore seeks to use green hydrogen, promote its mote the use of hydrogen in manufacturing and for rapid market rollout and establish the necessary value the purpose of eliminating and utilising carbon emis- chains. The Federal Government believes that both a sions in the base materials industry. These seek to global and European hydrogen market will emerge in encourage the industry to invest in hydrogen solu- the coming ten years and that carbon-free (for exam- tions. On 3 June 2020, the Coalition Committee ple blue or turquoise) hydrogen will be traded on this adopted a ‘package for the future’ which makes avail- market. Given Germany’s close integration in the able another 7 billion euros for speeding up the mar- European energy supply infrastructure, carbon-free ket rollout of hydrogen technology in Germany and hydrogen will be relevant for Germany and, if avail another 2 billion euros for fostering international able, will be temporarily used. partnerships. The precise amounts available for each of these programmes depend on the budget estimates In addition to this, hydrogen creates fresh potential made by the responsible ministries. for industrial policy and can help the German and European economy deal with the consequences of the A considerable increase in the demand for hydrogen coronavirus pandemic. The National Hydrogen Strat- is expected in the medium to long term. In order to egy therefore also seeks to use the economic opportu- harness the full potential of hydrogen technology, the nities opening up as a result. next steps need to be taken to speed up the rollout of this technology together with the private sector. The The Federal Government has been aware of the poten- National Hydrogen Strategy provides the basis for pri- tial of hydrogen technology for many years. Between vate-sector investment in hydrogen generation that is 2006 and 2016, around 700 million euros in funding both economically viable and sustainable, and in its was approved under the National Innovation Pro- transport and use. gramme on Hydrogen and Fuel Cell Technology, and between 2016 and 2026, a total of 1.4 billion euros in Considering the status quo, it is unlikely that the large funding will be provided. In addition to this the Fed- quantities of hydrogen that will be needed for the eral Government has made use of the financial energy transition can be produced in Germany alone, resources provided under the Energy Research Pro- as Germany’s renewable energy generation capacity is gramme to build an excellent research landscape. limited. This means that Germany will continue to Between 2020 and 2023, 310 million euros will be pro- import much of its energy from abroad. We will foster vided under the Energy and Climate Fund for prac- and intensify international cooperation and partner- tice-oriented basic research on green hydrogen and ships on hydrogen. there are plans to provide another 200 million euros over this period to strengthen practice-oriented Hydrogen has gained in importance on the European energy research on hydrogen technology. In addition, and international agenda in the last few years. In Sep-
4 I . R E CO G N I S I N G T H E P OT E N T I A L A N D H A R N E S S I N G T H E O P P O RT U N I T I E S O F H Y D R O G E N tember 2018, the Federal Government together with 27 other European nations and the European Com- mission adopted a European hydrogen initiative and declared hydrogen technology and systems a value chain of strategic interest. The Federal Government will make use of this momentum to continue to advocate hydrogen technology during its upcoming Presidency of the Council of the EU and in line with the principles set out in this strategy. It will be for the competent ministries to ensure that the measures are implemented and financed on the basis of the existing budget estimates and financial plans.
5 II. The National Hydrogen Strategy – goals and ambitions By tabling the National Hydrogen Strategy, the Fed- Developing a domestic market for eral Government is providing a coherent framework hydrogen technology in Germany, for the generation, transport and use of hydrogen, paving the way for imports encouraging the relevant innovations and invest- ment. The Strategy sets out the steps that are needed to meet the German climate targets, create new value The first step that needs to be taken to speed up the chains for the German economy and foster energy rollout of hydrogen technology is establishing a strong policy cooperation at international level. It focuses in and sustainable domestic market for the production particular on the following goals: and use of hydrogen at home. A strong domestic mar- ket will send an important signal, encouraging other countries to use hydrogen technology as well. Ger- Assuming global responsibility many will design the incentives for speeding up the rollout of hydrogen technology in Germany and par- The Federal Government recognises Germany’s respon- ticularly for the establishment and operation of elec- sibility to reduce greenhouse gas emissions globally. trolysers in a way that is compatible with the energy By developing the hydrogen market and promoting transition. hydrogen as a decarbonisation option, our country can make a key contribution to climate change miti- The Federal Government expects that around 90 to gation around the world. 110 TWh of hydrogen will be needed by 2030. In order to cover part of this demand, Germany plans to estab- lish up to 5 GW of generation capacity including the Making hydrogen a competitive offshore and onshore energy generation facilities option needed for this. This corresponds to 14 TWh 2 of green hydrogen production and will require 20 TWh of The current framework does not allow hydrogen to renewables-based electricity. It needs to be ensured be generated and used in an economically viable that the demand for electricity that is created by the manner. Fossil fuels in particular continue to be much electrolysers will not lead to an increase in carbon cheaper as the cost of carbon emissions is not included emissions. The Federal Government has included a in their price. In order for hydrogen to become eco- monitoring mechanism in the National Hydrogen nomically viable, we need to continue to bring down Strategy which will be used to track the development the price of hydrogen technology. In order to drive of green hydrogen demand in detail. An additional 5 forward technological progress and economies of GW of capacity are to be added, if possible by 2035 and scale and promptly obtain the critical mass of hydro- no later than 2040. gen needed for some initial sectors to switch to the new technology, the production and use of hydrogen However, the domestic generation of green hydrogen need to be sped up globally. A particular focus is being will not be sufficient to cover all new demand, which placed on areas that are already close to commercial is why most of the hydrogen needed will have to be viability and where major path dependencies can be imported. There are several places across the EU where avoided, or which cannot be decarbonised in other large quantities of renewables-based electricity are ways, as is the case for process-related emissions in being generated. These offer great potential for pro- the steel or chemicals industry, or in certain parts of ducing green hydrogen. The Federal Government will the transport sector. In the longer term, parts of the work to ensure that this potential is tapped and that heat market will also be focused on. the generation capacities are further expanded. To this 2 Assumption: 4,000 hours full-load hours of electrolyser operation and an efficiency ratio of 70%.
6 I I . T H E N AT I O N A L H Y D R O G E N S T R AT E G Y – G O A L S A N D A M B I T I O N S end, it will intensify its cooperation with other Euro- tems for the defence of our country and the Alliance, pean Member States, particularly those bordering the and maritime transport, where many routes and North and Baltic Sea, but also with the countries of applications cannot be operated using electricity southern Europe. The use of offshore wind energy alone. This is why the fossil input and fossil fuels need will play an important role. The Federal Government to be replaced by renewables-based alternatives, for will work with the North and Baltic See border states example jet fuel produced through PtX. to push forward hydrogen production by establishing a reliable regulatory framework for offshore wind energy. It also aims to systematically develop produc- Making hydrogen a sustainable base tion sites in other partner countries, for example as material for the industrial sector part of development cooperation. The Federal Gov- ernment seeks to provide suppliers, consumers and Hydrogen is an important base material for the German investors in Germany and abroad with the security to industrial sector (it is used for example in the chemi- plan ahead. cals industry or steel production). Around 55 TWh of hydrogen – most of it produced from fossil energy This will require working with the relevant partner sources – is used for industrial applications in Ger- countries to launch an investment and innovation many each year. These need to switch to a production campaign. The Federal Government will use its based on green hydrogen to the extent possible. In Hydrogen Strategy to promote the establishment of addition to this, hydrogen and hydrogen-based PtX production capacity and new supply chains and pro- commodities need to be used to drive forward the vide our partner countries with the relevant technol- decarbonisation of emission-intensive industrial pro- ogy and targeted solutions. This will boost employ- cesses, which will open up new fields of application ment both in Germany and our partner countries and for hydrogen and PtX commodities. For example, it pave the way for long-term economic growth. is estimated that more than 80 TWh of hydrogen would be needed to make German steel production The Action Plan for the National Hydrogen Strategy GHG-neutral by 2050. Around 22 TWh of green and the current budget and financial estimates serve hydrogen would be needed for German refinery and as the basis for speeding up the rollout of hydrogen ammonia production to switch to hydrogen. Germa- technology. Should it become clear that the demand ny’s industrial sector already has demand for hydro- for hydrogen will develop more strongly than gen and this demand is expected to grow heavily in expected, the National Hydrogen Strategy will be the future. This means that the industrial sector is enhanced as part of the evaluation process. well-placed to become one of main factors speeding up the market rollout of hydrogen and a global pio- neer for hydrogen technology. Establishing hydrogen as an alterna tive for other energy sources Enhancing transport and distribution Hydrogen technology and the alternative sources of infrastructure energy derived from it are an integral part of the energy transition and contribute to its success. Some Developing and putting in place the right transport sectors such as air and maritime transport or indus- and distribution infrastructure is key in order to be tries in which process-related emissions are unavoid- able to import and develop the sales markets for able will be impossible or very difficult to electrify, hydrogen and the products derived from it. Germany even in the long term. This applies in particular to has a well-developed gas infrastructure consisting of aviation, parts of heavy-duty transport, mobile sys- a tightly-knit natural gas network and the gas storage
II. THE NATIONAL HYDROGEN STRATEGY – GOALS AND AMBITIONS 7 units connected to it. In order to harness the full tists and the general public to look at how hydrogen potential of hydrogen, we will enhance our transport can make a contribution to the energy transition. We and distribution infrastructure and continue to will start a dialogue process to accompany the neces- ensure that the use of hydrogen applications is safe. sary transformations and provide assistance to the This includes building and expanding a dedicated stakeholders where necessary. hydrogen network. The Federal Government will revisit and develop the regulatory framework and the technical requirements for the gas infrastructure. For Strengthening German industry and example, it will examine whether natural gas pipe- securing global market opportunities lines which are no longer needed to transport natural gas (for example L gas) can be converted into hydro- for German firms gen infrastructure and investigate whether the com- patibility of existing or upgraded gas infrastructure Germany now has the chance to play a key role in with hydrogen can be ensured. international competition for the development and export of hydrogen and Power-to-X (PtX) technolo- gies. The broad-based community of German stake- Fostering science, mobilising skilled holders in the hydrogen technology field, with their labour good international connections, will not only be a key factor for the successful market ramp-up of Research is a strategic element underpinning energy hydrogen technologies in Germany, but will also and industrial policy. Only by developing long-term improve the opportunities of German firms on this research and innovation programmes that cover the forward-looking market. The manufacture of compo- entire hydrogen value chain – from storage, transport nents for the generation and use and for the supply and distribution all the way to its use – will it be pos- of hydrogen will contribute to regional value crea- sible to establish hydrogen as a key technology for the tion and strengthen the companies active in these energy transition. Hydrogen solutions need to be sys- fields. For this to happen, attention is being paid in tematically developed to the stage of practical use at the implementation of the hydrogen strategy and in industrial scale by 2030. In order to further strengthen particular in the funding measures to ensuring that the good position of German companies and research all of Germany’s regions benefit from the new poten- institutes on hydrogen, we should recruit, train and tial for growth deriving from the hydrogen economy. foster outstanding scientists, new talent and skilled The fostering of the market ramp-up of hydrogen staff and engage in close dialogue with other leading technologies also makes an important contribution research nations. The government also plans to place towards coping with the economic impact of the a stronger focus on establishing new research insti- coronavirus pandemic, and lays a further foundation tutes, setting up centres of excellence and building stone for a sustainable orientation of German indus- educational and research capacity aimed at regions try. which are particularly affected by structural change. Establishing international markets Shaping and accompanying and cooperation for hydrogen transformation processes We need to prepare the future supply of hydrogen The energy transition and the increased use of renew- and its downstream products and design it to be sus- able energy mean that all stakeholders need to adapt tainable. This is because, in the medium to long term, in many ways. We will work with businesses, scien- Germany will import substantial quantities of hydro-
8 I I . T H E N AT I O N A L H Y D R O G E N S T R AT E G Y – G O A L S A N D A M B I T I O N S gen. We share with other future importers an interest Building up and securing the quality in the swiftest possible establishment of a global assurance infrastructure for hydrogen hydrogen market. In view of their potential for production, transport, storage and renewable energy, the countries currently producing and exporting fossil fuels also have attractive oppor- use, and building trust tunities to convert their supply chains to the use of renewable energy and hydrogen, and thus to become The special physical and chemical properties of potential suppliers of hydrogen. In this way, these hydrogen mean that a robust quality assurance infra- countries will be also able to benefit in the long term structure for the development and in particular the from existing trade relations. Here, it is important to monitoring of facilities to produce, transport, store ensure that local markets and a local energy transi- and use hydrogen is essential. The chief components tion in the partner countries are not impeded, but are of this measurement and quality assurance infra- fostered by the production of hydrogen. structure which needs to be built up and networked at national and European level are metrology and International trade in hydrogen and synthetic down- physical and chemical safety technology. In particular, stream products will not only create new trade rela- there is a need for scientifically accepted and regu- tions for Germany and the EU, but also facilitate a lated measurement methods and assessment criteria, further diversification of energy sources and trans- and internationally accepted standards and technical port routes, and will thus improve the security of sup- standards. Further to this, a high level of safety needs ply. International trade in hydrogen and its down- to be established. Negative events and accidents can stream products will thus become a significant indus- undermine public acceptance of hydrogen technol- trial and geopolitical factor which creates a need for ogy. There is a need to build trust amongst the users. strategic objectives and decisions, but also offers fresh opportunities for all sides. Improving the policy environment and addressing current develop Regarding global cooperation as an ments on an ongoing basis opportunity There is a sense around the world that hydrogen tech- The implementation and further development of the nologies are on the verge of exciting progress, and we National Hydrogen Strategy is an ongoing process. wish to work with our partners around the world to The status of implementation and target achievement utilise this positive mood and make rapid technologi- is subject to regular review by a new committee of cal progress. At international level, the cooperation state secretaries for hydrogen from the various minis- with potential suppliers and other importers pro- tries; this body will also decide on the further devel- motes their contribution towards climate change mit- opment and implementation of the Strategy. The igation and creates opportunities for sustainable state secretaries’ committee is supported and advised growth and development. Possibilities for joint pro- by a National Hydrogen Council with high-level jects and trialling of technology exist in the area of experts from science, business and civil society. The the North Sea and in southern Europe in particular, Strategy will be subject to a first evaluation after three and also in the context of the Federal Government’s years. On this basis, the Federal Government will then energy partnerships and cooperation with the partner consider the further development of the Strategy, countries in German development cooperation. including the necessary measures for this.
´ 9 III. Hydrogen: status quo, fields of action, and markets of the future The status quo and expected ios analysed by various studies that consider the effects trends for hydrogen and its down on the entire energy system in the case of a 95% reduc- tion of GHG emissions against the 1990 baseline, the stream products forecast consumption of electricity-based energy sources in 2050 will be between 110 TWh (Klima Domestic hydrogen consumption currently amounts schutzszenarien [Climate Action Scenarios] by the to roughly 55 TWh. The greatest demand for hydro- Federal Ministry for the Environment, Nature Con gen is linked to material production processes in servation and Nuclear Safety) and roughly 380 TWh industry and is evenly distributed between the basic (Klimapfade [Climate Paths] by the BDI, the Federa- chemicals (production of ammonia, methanol, etc.) tion of German Industries). Alongside the industrial and petrochemicals sector (production of conven- and transport sectors, long-term demand will also tional fuels). The bulk of the hydrogen being used in arise in the transformation sector. The shape of the these processes is ‘grey’ hydrogen. About 7% of future policy framework, particularly as regards cli- demand (3.85 TWh) is being met via electrolysis (chlo- mate action ambitions and the attendant strategies ralkali) processes. Since some of the hydrogen used in being pursued, will have a decisive impact on the the petrochemicals industry, in particular, does not development of overall demand and consumption have to be produced from scratch, but is available as a levels in the individual sectors. by-product of other processes (e.g. catalytic reform- ing), the current level of hydrogen consumption of The National Hydrogen Strategy is targeted at the fol- around 55 TWh cannot entirely be substituted with lowing strategic markets of the future: ‘green’ hydrogen. Hydrogen production The future development of the hydrogen market in Germany, but also globally, will fundamentally To enable the market penetration and export of depend on the level of ambition displayed by climate hydrogen technologies, a domestic market is indis- action policy and the attendant strategies being pur- pensable – one that provides a strong and sustainable sued. In the light of the Paris Agreement and the Fed- base for the production and use of hydrogen while eral Government’s commitment to the goal of achiev- furthering the energy transition. If hydrogen is to ing greenhouse gas neutrality by 2050, the hydrogen have long-term prospects of being used in a sustaina- market is likely to exhibit the following trends in the ble and economical way, capacities for generating future: electricity from renewables (particularly wind power and photovoltaics) must be systematically improved. By 2030, following market penetration, hydrogen demand is set to experience an initial increase – espe- Industrial sector cially in the industrial sector (chemicals, petrochemi- cals, steel) and, to a lesser extent, in the transport sec- In certain industrial sectors, the transformation tor. According to conservative estimates, the demand towards carbon neutrality will not be possible using in industry will rise by 10 TWh. In addition, growing conventional technologies. In these sectors, gaseous demand is expected to come from fuel-cell-driven and liquid sources of energy have to be gradually electric vehicles. Other consumers (e.g. parts of the replaced by alternative technologies, paving the way heating sector, in the long term) might follow. for the use of alternative resources or processes with either zero or very low carbon emissions. Many of If the 2050 carbon neutrality goal is to be reached, these processes will, in the long term, enable the use hydrogen technologies will also have to play an of hydrogen and products derived from it. In refiner- important role in Germany. According to the scenar- ies and parts of the chemical industry, in particular, it
10 I I I . H Y D R O G E N : S TAT U S Q U O, F I E L D S O F A C T I O N , A N D M A R K E T S O F T H E F U T U R E is already possible today to substitute green hydrogen vehicles can complement battery-powered electric for ‘grey’ hydrogen without any adjustments being mobility and help significantly reduce air pollutant necessary. Moreover, existing infrastructures of the and carbon emissions. In certain segments, hydrogen chemical industry, e.g. hydrogen networks, can con- may also provide an alternative for cars. If hydrogen is tinue to be used and possibly be expanded or opti- to be used in road transport, refuelling infrastructure mised for other applications such as in the steel sec- must be expanded as needed. tor. For example, hydrogen will soon be used within pilot projects in the steel industry, where it can help It is important to provide constructive and targeted substitute high-emission blast furnace processes with support for the German automotive and supplier the direct reduction of iron ore. The aim is, wherever industry as it undergoes this structural transforma- possible, to channel upcoming investments in pro- tion. With a view to fuel cell technology, for example, duction facilities on an industrial scale into climate- the goal is to strengthen Germany’s machinery and friendly technologies. Therefore, hydrogen is set to plant manufacturing sector and to aspire to global play an important long-term role in safeguarding the leadership in the endeavour to improve the cost, attractiveness of Germany’s industrial sector. weight, and performance parameters of fuel cell com- ponents (stacks, pressure tanks, etc.). Transport Heat market Mobility applications offer great potential for hydro- gen uses. The transport sector must be committed to Even after the efficiency and electrification potentials technological progress if it is to reach the sector-spe- for process heat generation and the building sector cific climate and renewables targets. Hydrogen-based have been harnessed, there will continue to be long- or PtX-based mobility can be an alternative option for term demand for gaseous fuels. In the long run, those applications where using electricity directly is hydrogen and its downstream products can help in not reasonable or technically feasible. This includes various ways to decarbonise parts of the heat market. military applications that must be able to ensure interoperability between allies. Hydrogen as a collaborative In the long term, air and maritime transport in par- European project ticular will develop a demand for carbon-neutral fuels which can be supplied in the form of hydro- The issues and conditions that have to be addressed gen-based energy sources from PtX processes. Both in order to foster the domestic ramp-up of hydrogen air and maritime transport rely on synthetic fuels to technologies and to build up an international hydro- achieve decarbonisation. In air transport as well as gen market can only be successfully handled within coastal and inland navigation, fuel cells and bat- the context of the European internal market and reg- tery-powered drives may also be an option for certain ulatory framework. As hydrogen technologies gain mobility needs. However, technological advances are ground in other EU Member States, it is becoming still necessary in this field. increasingly important to develop a European inter- nal market for hydrogen. The EU benefits from the In a wide range of sectors – such as local public pas- North Sea’s ideal locations for wind energy and the senger transport (buses, trains), parts of heavy-duty great potential for photovoltaics and wind energy road transport (trucks), commercial vehicles (e.g. for offered by southern Europe. This potential can repre- use in construction work or agriculture and forestry) sent a great long-term opportunity for generating or logistics (delivery traffic; other commercial vehicles renewable hydrogen. Also, Europe’s well-developed such as forklift trucks) – the introduction of fuel cell gas infrastructure may provide possibilities for the
III. HYDROGEN: STATUS QUO, FIELDS OF ACTION, AND MARKETS OF THE FUTURE 11 transport of hydrogen. In order to lay the foundations mate change mitigation, speed up the ramp-up of for an internal market, we need a strong European hydrogen technologies, and create opportunities for framework. Key challenges can only be meaningfully sustainable growth and development. It is possible, addressed in the context of the EU. Thus, cross-border for example, to agree on ambitious standards for cer- collaboration is indispensable in order to find solu- tification and for the sustainability of hydrogen pro- tions for the generation of wind and solar energy in duction, and to increase market volumes. Existing the respective areas and for the distribution of hydro- forms of collaboration, notably with the energy part- gen. It is also essential as regards regulatory law, invest- nerships of the Federal Government, but also with the ment conditions, and the sharing of experience. Fur- partner countries in German development coopera- thermore, action at European and international level tion or the International Climate Initiative, offer is required to establish clear sustainability standards prospects for joint projects and for testing import for the production and transport of hydrogen, and to routes and technologies. Besides these, further initia- set the stage for the systematisation and environmen- tives for international cooperation may emerge. Cur- tal classification of electricity, hydrogen, and syn- rent fossil fuel exporters may play a particularly thetic downstream products. By starting out early to prominent role if they offer great potential for hydro- develop standards and a policy environment in this gen production. In developing countries in particular, field, the EU can play a pivotal role in shaping the it is vital to ensure that the export of hydrogen will basic international framework. Progress also needs to not be detrimental to possibly inadequate energy sup- be made on the state aid framework to take account ply systems in the exporting countries concerned and of the rising operating costs linked to the use of hydro- thus incentivise local investment in even more fossil gen in the steel and chemical industries, for example. fuels. Therefore, the production of green hydrogen is Germany will take on an active role in setting up a to act as a stimulus for these countries to rapidly market for hydrogen and establishing sustainability expand their capacities for generating renewable standards, share its experience with the energy transi- energy – these will, after all, also benefit local markets. tion, and use its Council Presidency to place a central focus on the framework for sector coupling and the The trade relations needed for the hydrogen market development of an EU internal market for hydrogen. raise complicated geopolitical questions that policy- Within the EU, the Federal Government will advocate makers have to address as early as possible. But they that key aspects of this strategy influence the devel- also provide many opportunities – for example for opment of a European hydrogen strategy. expanding the EU’s internal energy market, establish- ing new international value chains, furthering coop- eration with those partner countries within German International trade development cooperation that offer great renewable energy potential for PtX production, and for expand- If Germany is to reach its climate targets for 2030 and ing existing or creating new trade relations with its GHG neutrality target for 2050, importing renewa- energy exporters. ble energy from beyond the European internal mar- ket will become a medium and long-term necessity. International trade in hydrogen and its downstream Transport and distribution infra products is therefore a significant industrial and geo- structure in Germany and abroad political factor. In order to be able to import and develop sales mar- At international level, cooperation with potential kets for hydrogen and its downstream products, the suppliers and importers, if based on the partners’ right transport and distribution infrastructure, espe- needs, can promote their contribution towards cli- cially as regards transmission systems, must be in
12 I I I . H Y D R O G E N : S TAT U S Q U O, F I E L D S O F A C T I O N , A N D M A R K E T S O F T H E F U T U R E place. Germany has a well-developed gas infrastruc- Research, education, innovation ture consisting of a tightly-knit natural gas network and the gas storage units connected to it. In future, Research is a strategic element underpinning energy part of this infrastructure is to be usable for hydrogen and industrial policy. Thanks not least to the long- as well. Further networks are to be created exclusively term approach and reliability of the Federal Govern- for the transport of hydrogen. Given Germany’s geo- ment’s research funding, German companies and graphical location and its role as an important transit research establishments are pioneering hydrogen and country within Europe, these transformation pro- other PtX technologies. Across the world, German cesses can only be successfully shaped in cooperation institutional funding finances outstanding research with its European neighbours and associated third facilities and infrastructures and helps to transpose countries. Consistent quality and sustainability stan cutting-edge research into practice. dards and suitable documentation procedures have to be established not only for the production, but also We are committed to providing research funding for the transport of hydrogen and associated emissions. key enabling technologies and new approaches that As in other countries, building up a hydrogen market cover the entire hydrogen value chain – from genera- in Germany entails technical challenges for several tion and storage, transport and distribution all the components of the infrastructure and for certain way to application. By integrating forward-looking devices and installations employed by end users. basic research with targeted application-based That is why the necessary transformation processes research, we can set the stage for key enabling tech- (‘hydrogen readiness’, etc.) must be enabled and initi- nologies such as electrolysis-based or bio-based pro- ated as early as possible. In order to avoid misallo- cesses of hydrogen production, methane pyrolysis cated investments, however, this transformation pro- (‘turquoise’ hydrogen), artificial photosynthesis, and cess should be oriented to the demand that can be fuel cells. It is important to take into account the par- expected in view of the 2050 carbon neutrality goal. ticularities of individual sectors such as air transport, maritime transport, and industry, and to harness Especially as far as international trade is concerned, potential spill-over effects across the various fields of important options for transporting hydrogen include application. We are also assessing the opportunities PtX downstream products or LOHCs (Liquid Organic that may arise with regard to natural hydrogen Hydrogen Carriers). Liquid hydrogen, PtL/PtG down- resources. stream products, and LOHCs can be transported easily and safely over long distances. Here, existing trans- We fund research in the knowledge that the findings port capacities and the relevant infrastructure may be made today will be the innovations of tomorrow. used and new capacities created (e.g. pipelines, meth- Bridges must be built between research and practice. anol and ammonium tankers). Under the motto ‘Ship- Apart from the regulatory sandboxes for the energy ping the sunshine’, research could provide an unprec- transition, we also rely on the tried-and-tested format edented opportunity to tap new potential for the of collaborative projects with strong partners from large-scale generation and transport of green hydro- the business and science communities. Due to the gen. Long-distance trading of PtX products can com- long run-up periods from research to application, it is plement the transport of hydrogen via pipeline sys- necessary to foster application-based energy research tems. It is important to avoid greenhouse gas emis- so that we can reach our targets in time. sions in connection with the transport of hydrogen. We are strengthening the pre-competitive coopera- tion between science and business also in the field of
III. HYDROGEN: STATUS QUO, FIELDS OF ACTION, AND MARKETS OF THE FUTURE 13 applied basic research. Flagship projects such as Car- bon2Chem and the Kopernikus projects demonstrate how cutting-edge science and innovative companies can successfully cooperate. We use these experiences to develop internationally visible and exportable ‘showcase’ initiatives for hydrogen technologies. Among other things, our research focuses on hydro- gen applications such as direct reduction as a means of reducing carbon emissions in the steel and chemi- cal industries. Now is the time to put laboratory innovations into practice – faster than we used to in the past – and to enable their industrial roll-out. To speed up the trans- fer of innovation for key enabling technologies, par- ticularly in the field of hydrogen, and to help these technologies become marketable more quickly, the regulatory sandboxes for the energy transition have been established as a new funding pillar of energy research. The National Decarbonisation Programme also helps to speed up the way innovative climate technologies that rely on hydrogen are made available and used throughout industry. Hydrogen is also an education issue: the hydrogen industry needs skilled workers, both in Germany and abroad. This is why we will explore new horizons for the cooperation between education and research.
14 IV. Governance for the National Hydrogen Strategy A flexible and results-oriented governance structure bonisation of industry, transport and buildings/heat, will be created to monitor the implementation of the infrastructure, international partnerships, as well as strategy and develop it further (cf. Figure 1). climate and sustainability. In its first meeting, the Council elects one of its members as Chair. A State Secretaries’ Committee on Hydrogen, com- posed of the relevant ministries, will provide contin- The task of the National Hydrogen Council is to advise uous support for the activities under the National and support the State Secretaries’ Committee through Hydrogen Strategy. In the event of delays in imple- proposals and recommendations for action in imple- mentation or a failure to meet the targets of the Strat- menting and enhancing the Hydrogen Strategy. The egy, the State Secretaries’ Committee will immedi- Council and the State Secretaries’ Committee hold ately take corrective action in coordination with the regular joint meetings in order to facilitate coordina- Federal Cabinet, adapting the action plan to the new tion between the Federal Government and the Council requirements. The aim is to ensure that the National and to ensure the Council’s work ties in closely with Hydrogen Strategy remains in line with market devel- the activities of the various ministries during the imple- opments and delivers on its overall targets. mentation of the National Hydrogen Strategy. Also, designated representatives of the ministries concerned The Federal Government will appoint a National (e.g. from the competent Directorates-General) attend Hydrogen Council. The Council is made up of 26 the Council’s meetings as guests. At the request of the high-level experts from business, science, and civil Länder, two Länder representatives may attend the society who are not part of the public sector. The meetings as guests. The National Hydrogen Council members of the Council should have expertise in the meets at least twice a year. fields of production, research and innovation, decar- Figure 1: Governance structure of the National Hydrogen Strategy Strategic management: decides on targets, State Secretaries Committee on Hydrogen objectives, action plan, etc. Monitoring report Advises and supports National Hydrogen Council Cordination Office Supports ministries and Chair* Coordinates Secretariat Council Production, research, and innovation, Supports Project structure for decarbonisation of industry, transport, Project management implementing the Strategy and buildings/heat, infrastructure, international prtnerships, climate and sustainability Advises and makes recommendation for action, provides specialist support Ministry1 und Länder representatives as guest Develops Action Plan Monitoring and supports Measures are implemented by responsible Measure 1 Measure 2 Measure 3 Measure 4 government representatives in cooperation with relevant (also international) partners * Elected by the members of the National Hydrogen Council 1 e.g at Director-General level
IV. GOVERNANCE FOR THE NATIONAL HYDROGEN STRATEGY 15 The ‘Green Hydrogen’ Innovation Officer of the Fed- the basis for an extended report, to be prepared every eral Ministry of Education and Research (BMBF) is a three years, which provides an overall evaluation of permanent guest of the State Secretaries’ Committee the strategy and action plan and suggests how these and the National Hydrogen Council. The Officer is in can be developed further. The aim on this basis is to charge of the organisation of research and develop- ensure the National Hydrogen Strategy is kept in line ment activities conducted by the BMBF, and coordi- with market trends and delivers on its targets. nates their implementation in cooperation with the government, business, and science representatives that are involved in the process. Furthermore, the Cooperation between the Federal Officer ensures that promising innovative approaches Government and the Länder and stimuli arising from the research that is con- ducted under the responsibility of the BMBF enter Aside from the measures taken at federal level, the the political realm and are taken up by public debate. Länder have also been planning and implementing their own hydrogen-related measures that are just as The Federal Government is establishing a Hydrogen important in terms of the creation of a hydrogen Coordination Office alongside the National Hydrogen economy and the leadership of German companies. Council. On behalf of the Federal Government, the Close cooperation between the federal and state levels secretariat of the Coordination Office assists the min- helps to coordinate activities, use synergies, avoid path istries in implementing the Hydrogen Strategy, and dependencies, share valuable experience, and define the Hydrogen Council in coordinating and drafting further steps of action. For this purpose, the Federal recommendations for action. The Coordination Office Government will soon (during the first half of 2020) is also responsible for monitoring the National Hydro- establish a suitable platform format (e.g. in the form of gen Strategy. Furthermore, it actively supports the a Federation-Länder Working Group on Hydrogen) ministries in the implementation of the Strategy by and make sure the Länder governments are kept providing a flexible project management structure. To informed about the activities of the Hydrogen Coun- this end, thematic task forces are established at the cil. Existing networks, initiatives, and working groups Coordination Office. focusing on hydrogen will be taken into account and, where appropriate, serve as a basis for further activi- An annual monitoring report provides a basis for rec- ties. ommendations and decisions to be made by the Hydrogen Council and the State Secretaries’ Commit- tee. The report not only gives an account of the over- all progress made on the creation of a hydrogen econ- omy, but also outlines any unexpected challenges that may have arisen during the reference period and identifies the steps that have to be taken. It also places particular focus on the European and international dimensions. The relevant indicators on which the report is based are continuously collected and evalu- ated as pertaining to the various fields of action (e.g. the electrolysing capacity installed in Germany, Europe, and other relevant countries; the amount of hydrogen and production methods across different fields of application). These monitoring reports form
16 V. Action Plan: steps necessary for the National Hydrogen Strategy to succeed In tabling this Action Plan for the National Hydrogen for German industry. This shows that continuous Strategy, the Federal Government is laying the basis development is a built-in feature of the National for private investment in hydrogen generation, trans- Hydrogen Strategy. port and use that is both economically viable and sus- tainable. This can also play a part in mitigating the impact of the COVID-19 crisis and reviving the Ger- Hydrogen production man and European economies. In a first ramp-up phase until 2023, the Federal Government will take a Reliable, affordable, and sustainable ways of produc- number of measures in the fields listed below. It will ing hydrogen are essential for its future use. Now is be for the competent ministries to ensure that the the time to construct demonstration plants at an measures are implemented and financed on the basis industrial scale and scale these up further to ensure of the existing budget estimates and financial plans. that the cost of hydrogen production degresses con- However, there is also a cross-cutting dimension to siderably. the National Hydrogen Strategy and there will be a strong focus on a systemic approach. This means that supply and demand will always be considered Measure 1 together. A better framework for the efficient use of electric- ity from renewables (e.g. by means of sector cou- The measures set out in the Action Plan are those for pling) and a fair design of the energy price compo- phase one of the National Hydrogen Strategy, i.e. the nents induced by the state, in line with the climate phase up to 2023, by which time the ramp-up is to targets and the targets for the energy transition begin and the basis for a well-functioning domestic (fostering grid stability), so as to create greater market to be laid. Parallel to this, essential issues such scope for the production of green hydrogen. The as research and development and international introduction of CO2 pricing for fossil fuels used in aspects are to be tackled as well. The next phase, which transport and the heating sector is an important is due to begin in 2024, is about stabilising the newly element here, and will be complemented by a emerging domestic market, moulding the European reduction of the EEG surcharge as envisaged in the and international dimension of hydrogen, and using it 2030 Phase 2 2023 Strengthen market ramp-up Nationally & Internationally Phase 1 Start market ramp-up, Harness opportunities 2020
V. ACTION PLAN: STEPS NECESSARY FOR THE NATIONAL HYDROGEN STRATEGY TO SUCCEED 17 2030 Climate Action Programme. This, however, for the production of green hydrogen, e.g. to help will not be sufficient in the long and mid-terms to decarbonise the steel and chemical industries. If ensure a viable business environment for compa- necessary, the financing that has been earmarked nies operating plants for the production of green for the National Decarbonisation Programme will hydrogen in Germany. Beyond what has been be topped up as needed. agreed in the Climate Package, we will therefore explore the possibility of additional reform of the price components induced by the state whilst con- tinuing to establish CO2 pricing as a key guiding Measure 4 instrument. Our analysis will also include the ques- Due to the high number of full-load hours, off- tion as to whether it might be possible to largely shore wind energy is an attractive renewables tech- exempt electricity used for the production of green nology that can be harnessed for the production of hydrogen from taxes, levies, and surcharges. In par- green hydrogen. The framework for this is being ticular, we are working towards exempting the pro- developed further to ensure that investments in duction of green hydrogen from the EEG surcharge. this area pay off. Potential adjustments that will be As we do so, we will ensure that the EEG surcharge discussed include the designation of additional dues not rise. areas that can be used for offshore production of hydrogen/PtX, the infrastructure necessary for this, and the potential for additional auction rounds for the production of renewables (implementation Measure 2 starts in 2020). Also being explored are possibilities for new busi- ness and cooperation models for operators of elec- trolysers and for grid and gas network operators in line with the principle of regulatory unbundling Fields of application (results expected in 2020). We want to launch one or two model projects to test highly promising Reliable demand and greater use of hydrogen are approaches that could significantly ease the burden both needed for the hydrogen market to continue to on the grids at an affordable price without distort- develop. There are economic reasons why the hydro- ing the hydrogen market. Work to explore any gen ramp-up must proceed in a targeted way and potential need for amending the regulatory frame- incrementally. For this reason, its use as an alterna- work to make this possible is being undertaken. tive fuel in some areas of the transport sector and as a base substance for recycling and a reductive in high-priority industrial applications is to be increased. High-priority in this case will be fields in which the Measure 3 use of hydrogen is close to being economically viable As part of our Climate Action Innovation Pact, we in the short or medium term, in which no major path are also supporting the switchover to hydrogen in dependency is being created, or in which there are no the industrial sector by providing funding for alternative options for decarbonisation. investments in electrolysers (implementation starts in 2020, for more details on the Climate Action Innovation Pact and the support for hydrogen applications in the industrial sector cf. Measure 14). We are also exploring potential tendering schemes
You can also read