The Import Strategy for hydrogen and hydrogen derivatives, which were published by the Federal Government in July 2024, supplements the National Hydrogen Strategy (NHS). The strategy aims to send clear signals to partner countries and companies about Germany’s need and willingness to import hydrogen and hydrogen derivatives. It thus makes an important contribution to improving the security of investments in hydrogen production in our partner countries and in the construction of the necessary import infrastructure.
The strategy expects a need of 95-130 TWh of hydrogen and hydrogen derivatives by 2030, of which 50-70% must be imported. By 2045, the need is expected to increase to 360-500 TWh for hydrogen and 200 TWh for its derivatives.
The Import Strategy for hydrogen and hydrogen derivatives sketches out the policy environment, measures and instruments along the entire value chain, which consist of:
- Diversification of the product range: in the Import Strategy, the Federal Government clearly states its support for a diversified product range, including hydrogen and various derivatives like ammonia and methanol.
- Diversification of the supply chains: the Federal Government aims at a broad diversification of supply sources and cooperates in bilateral and multilateral formats with a large number of partner countries and regions around the world. Key to this strategy are over 30 energy and climate partnerships, a number of specific H2 partnerships and the development of multiple intra-European import corridors, which are currently emerging in the North Sea, Baltic Sea, southern and southwestern European regions.
- Transport infrastructure: the cross-border transport of hydrogen and its derivatives is made possible by the construction both of pipelines (for imports from Europe and neighbouring countries) and of import terminals (for ship-based imports from more distant regions). The onshore LNG terminals that are currently in the planning stages are designed to be able to bring hydrogen derivatives onshore in future. Pipelines will likely cover the bulk of the hydrogen demand, whilst ship-based transport will remain important for hydrogen derivatives into the long term. The building of the necessary infrastructure is based on Germany’s hydrogen core network, which is to come on stream by 2032.
- Boosting demand: a wide array of funding instruments and incentive systems have been developed to close financing gaps for the German transformation plans in the hydrogen and hydrogen derivatives sector. This includes carbon contracts for difference (CCfDs), Federal Funding for Industry and Climate Action, the IPCEI Hydrogen, the Power Plant Security Act and the quotas of RED III. In this way, a reliable demand-side market will be established in Germany, improving offtake security for the production side and facilitating decisions on investment.
- Stimulating the supply: the Federal Government is additionally supporting international H2 projects with instruments for funding, financing and guarantees. H2Global is a central instrument of the Federal Government enabling hydrogen to be purchased around the world. Also, the Federal Government is working to foster international availability of hydrogen, e.g. by continuing to develop the European Hydrogen Bank and by setting up the PtX Development Fund. The supply-side support is complemented by instruments to promote foreign trade and investment, e.g. export credit guarantees, investment guarantees and untied loans.
- Sustainability standards: the Federal Government has committed to establishing, complying with and, where necessary, continuing to develop sustainability standards to ensure that the ramp-up of the international hydrogen market does not negatively affect the global energy transition. Germany is orienting itself to the European regulatory framework in this case, and is in dialogue with international partners regarding further development of and compliance with these standards. The Carbon Management Strategy will also play a role in achieving this.
