Germany’s largest industry federation, the BDI, has called on the government to speed up the execution of its hydrogen strategy and provide incentives to help drive demand.

“More speed and more pragmatism are needed in implementing the strategy,” says Holger Losch, the BDI’s deputy managing director, in a statement marking one year since the strategy’s launch.

Germany’s energy transition and hydrogen policy are under intense scrutiny domestically ahead of federal elections in September.

The BDI is calling on the European Commission to allow hydrogen incentives to be allowed under state aid rules. “In addition to CO₂ price signals, other instruments are needed to increase demand and use of green hydrogen, such as government financing of the additional costs. Brussels must now create the conditions under state aid law to support operating costs for a limited period,” says Losch.

The BDI welcomed Germany’s recent move to support 62 hydrogen projects under the EU’s Important Project of Common European Interest (IPCEI) scheme. But it criticised aspects of the scheme, including a rule that limits the number of permitted operating hours for electrolysis projects.

The BDI also calls on the government to strengthen international ties to secure supplies of hydrogen to meet the country’s “enormous import demand” in the future. It also stressed the need for hydrogen infrastructure. “The German government should step up its efforts to rapidly and boldly expand the hydrogen infrastructure,”  says Losch. “The goal should be to plan and regulate gas and hydrogen networks together so as not to deter hydrogen pioneer customers."

 

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Author: Stuart Penson