TheNationalHydrogenStrategybmwi.deImprintPublisherFederalMinistryforEconomicAffairsandEnergyPublicRelationsDivision11019Berlinwww.bmwi.deCurrentasatJune2020DesigniStock/smirkdingo/titleYoucanobtainthisandotherbrochuresfrom:FederalMinistryforEconomicAffairsandEnergy,PublicRelationsDivisionEmail:publikationen@bundesregierung.dewww.bmwi.deCentralorderingservice:Tel.:+493018272272Fax:+493018102722721ThisbrochureispublishedaspartofthepublicrelationsworkoftheFederalMinistryforEconomicAffairsandEnergy.Itisdistributedfreeofchargeandisnotintendedforsale.Thedistributionofthisbrochureatcampaigneventsoratinformationstandsrunbypoliticalpartiesisprohibited,andpoliticalparty-relatedinformationoradvertisingshallnotbeinsertedin,printedon,oraffixedtothispublication.ContentI.Recognisingthepotentialandharnessingtheopportunitiesofhydrogen.....................................................................................2II.TheNationalHydrogenStrategy–goalsandambitions.......................................................................................................................................................................5Assumingglobalresponsibility................................................................................................................................................5Makinghydrogenacompetitiveoption............................................................................................................................5DevelopingadomesticmarketforhydrogentechnologyinGermany,pavingthewayforimports....................................................................................................................................................................................5Establishinghydrogenasanalternativeforotherenergysources................................................................6Makinghydrogenasustainablebasematerialfortheindustrialsector....................................................6Enhancingtransportanddistributioninfrastructure............................................................................................6Fosteringscience,mobilisingskilledlabour..................................................................................................................7Shapingandaccompanyingtransformationprocesses.........................................................................................7StrengtheningGermanindustryandsecuringglobalmarketopportunitiesforGermanfirms........................................................................................................................................................................................7Establishinginternationalmarketsandcooperationforhydrogen..............................................................7Regardingglobalcooperationasanopportunity.......................................................................................................8Buildingupandsecuringthequalityassuranceinfrastructureforhydrogenproduction,transport,storageanduse,andbuildingtrust...................................................................................8Improvingthepolicyenvironmentandaddressingcurrentdevelopmentsonanongoingbasis........................................................................................................................................................................................8III.Hydrogen:statusquo,fieldsofaction,andmarketsofthefuture.......................................................................................................................9Thestatusquoandexpectedtrendsforhydrogenanditsdownstreamproducts............................9HydrogenasacollaborativeEuropeanproject.........................................................................................................10Internationaltrade.........................................................................................................................................................................11TransportanddistributioninfrastructureinGermanyandabroad............................................................11Research,education,innovation..........................................................................................................................................12IV.GovernancefortheNationalHydrogenStrategy.................................................................................................................................................................................................14CooperationbetweentheFederalGovernmentandtheLänder.................................................................15V.ActionPlan:stepsnecessaryfortheNationalHydrogenStrategytosucceed................................................................16Hydrogenproduction...................................................................................................................................................................16Fieldsofapplication......................................................................................................................................................................17VI.Glossary...............................................................................................................................................................................................................................................................................................................................................................................................282I.RecognisingthepotentialandharnessingtheopportunitiesofhydrogenTheenergytransition–whichrepresentstheeffortsundertakenandresultsachievedonrenewableenergyexpansionandenergyefficiency–isourbasisforaclean,secureandaffordableenergysupply,whichisessentialforallourlives.Byadoptingthe2030ClimateActionPlan,theFederalGovernmenthaspavedthewayformeetingitsclimatetargetsfor2030.Itslong-termgoalistoachievecarbonneutralityinlinewiththetargetsagreedundertheParisAgreement,whichseekstokeepglobalwarmingwellbelow2degreesandifpossiblebelow1.5degrees.Inaddition,Germanyhascommitteditself,togetherwiththeotherEuropeanMemberStates,toachievinggreenhousegas(GHG)neutralityby2050.Apartfromphasingoutcoal-firedpower,forwhichGermanyhasalreadytakentherel-evantdecisions,thismeanspreventingemissionswhichareparticularlyhardtoreducesuchasprocess-relatedGHGemissionsfromtheindustrialsector.Inorderfortheenergytransitiontobesuccessful,securityofsupply,affordabilityandenvironmentalcompatibilityneedtobecombinedwithinnovativeandsmartclimateaction.Thismeansthatthefossilfuelswearecurrentlyusingneedtobereplacedbyalternativeoptions.Thisappliesinparticulartogaseousandliquidenergysources,whichwillcontinuetobeanintegralpartofGermany’senergysupply.Againstthisbackdrop,hydrogen1willplayakeyroleinenhancingandcompletingtheenergytransition.•Hydrogencanbeusedasanenergysource.Forexample,itcanbeusedinfuelcellstodrivefor-wardhydrogen-poweredtransportorasameanstoproducesyntheticfuels.•Hydrogenisanenergystoragemediumthatallowsforrenewableenergytobestoredinasup-ply-basedandflexiblemannerandthereforehelpsbalanceenergysupplyanddemand.Thismakeshydrogenanimportantingredientoftheenergytransition.•Hydrogenplaysakeyroleforsectorcoupling.Inareaswhererenewableelectricitycannotbeuseddirectly,greenhydrogenandtheproductsderivedfromit(power-to-X)openupnewwaystodecar-boniseourenergysupply.•Alreadytoday,manychemicalandindustrialpro-cessesdependontheuseofhydrogen.Forexam-ple,itisusedasabasesubstanceforproducingammonia.Goingforward,thefossil-basedhydro-gencurrentlyusedforthisistobereplacedbygreenhydrogen.Inaddition,hydrogeninitspureformcanbeusedtodecarboniseawiderangeofindustrialproductionprocessesforwhichcur-rentlynodecarbonisationtechnologiesareavailable.Forexample,inordertoallowfortheGHG-freeproductionofprimarysteel,hydrogeniscurrentlyconsideredtobethemostpromisingsolutionforreplacinghard-coalcoke.•Hydrogenwillberequiredifcertaintypesofcar-bonemissionsfromtheindustrialsectorsuchasprocess-relatedemissionsfromthecementindus-tryaretobeeliminatedinthelongterm.Bycap-turingcarbonemissionsfromtheindustrialsectorandcombiningthesewithhydrogen,usefulchem-icalscanbeproduced(CCU)andnewvaluechainsforthebasicchemicalsindustryopenedup.Inordertomakehydrogenakeyelementofourdecar-bonisationstrategy,ourentirevaluechain–from1TheFederalGovernmentconsidersonlyhydrogenthathasbeenproducedusingrenewableenergy(greenhydrogen)tobesustainableinthelongterm.3I.RECOGNISINGTHEPOTENTIALANDHARNESSINGTHEOPPORTUNITIESOFHYDROGENtechnologies,generation,storage,infrastructureanduse,includinglogisticsandimportantaspectsofqual-ityassurance–needtobelookedat.InorderforGermanytobecomeGHG-neutralandmeetitsinternationalobligationsundertheParisAgreement,hydrogenneedstobeestablishedasadecarbonisationoption.TheFederalGovernmentconsidersonlyhydrogenthathasbeenproducedusingrenewableenergy(greenhydrogen)tobesus-tainableinthelongterm.TheFederalGovernmentthereforeseekstousegreenhydrogen,promoteitsrapidmarketrolloutandestablishthenecessaryvaluechains.TheFederalGovernmentbelievesthatbothaglobalandEuropeanhydrogenmarketwillemergeinthecomingtenyearsandthatcarbon-free(forexam-pleblueorturquoise)hydrogenwillbetradedonthismarket.GivenGermany’scloseintegrationintheEuropeanenergysupplyinfrastructure,carbon-freehydrogenwillberelevantforGermanyand,ifavailable,willbetemporarilyused.Inadditiontothis,hydrogencreatesfreshpotentialforindustrialpolicyandcanhelptheGermanandEuropeaneconomydealwiththeconsequencesofthecoronaviruspandemic.TheNationalHydrogenStrat-egythereforealsoseekstousetheeconomicopportu-nitiesopeningupasaresult.TheFederalGovernmenthasbeenawareofthepoten-tialofhydrogentechnologyformanyyears.Between2006and2016,around700millioneurosinfundingwasapprovedundertheNationalInnovationPro-grammeonHydrogenandFuelCellTechnology,andbetween2016and2026,atotalof1.4billioneurosinfundingwillbeprovided.InadditiontothistheFed-eralGovernmenthasmadeuseofthefinancialresourcesprovidedundertheEnergyResearchPro-grammetobuildanexcellentresearchlandscape.Between2020and2023,310millioneuroswillbepro-videdundertheEnergyandClimateFundforprac-tice-orientedbasicresearchongreenhydrogenandthereareplanstoprovideanother200millioneurosoverthisperiodtostrengthenpractice-orientedenergyresearchonhydrogentechnology.Inaddition,600millioneuroswillbeprovidedbetween2020and2023tofosterthe‘RegulatorySandboxesfortheEnergyTransition’,whichhelpspeedupthetransferoftechnologyandinnovationsfromthelabtothemarket,notleastforhydrogensolutions.AspartofGermany’sdecarbonisationprogramme,fundingisprovidedforinvestmentintechnologiesandlarge-scaleindustrialfacilitieswhichusehydrogentodecarbonisetheirmanufacturingprocesses.Morethan1billioneuroswillbeprovidedforthisbetween2020and2023.Therearealsoprogrammesthatpro-motetheuseofhydrogeninmanufacturingandforthepurposeofeliminatingandutilisingcarbonemis-sionsinthebasematerialsindustry.Theseseektoencouragetheindustrytoinvestinhydrogensolu-tions.On3June2020,theCoalitionCommitteeadopteda‘packageforthefuture’whichmakesavail-ableanother7billioneurosforspeedingupthemar-ketrolloutofhydrogentechnologyinGermanyandanother2billioneurosforfosteringinternationalpartnerships.Thepreciseamountsavailableforeachoftheseprogrammesdependonthebudgetestimatesmadebytheresponsibleministries.Aconsiderableincreaseinthedemandforhydrogenisexpectedinthemediumtolongterm.Inordertoharnessthefullpotentialofhydrogentechnology,thenextstepsneedtobetakentospeeduptherolloutofthistechnologytogetherwiththeprivatesector.TheNationalHydrogenStrategyprovidesthebasisforpri-vate-sectorinvestmentinhydrogengenerationthatisbotheconomicallyviableandsustainable,andinitstransportanduse.Consideringthestatusquo,itisunlikelythatthelargequantitiesofhydrogenthatwillbeneededfortheenergytransitioncanbeproducedinGermanyalone,asGermany’srenewableenergygenerationcapacityislimited.ThismeansthatGermanywillcontinuetoimportmuchofitsenergyfromabroad.Wewillfosterandintensifyinternationalcooperationandpartner-shipsonhydrogen.HydrogenhasgainedinimportanceontheEuropeanandinternationalagendainthelastfewyears.InSep-4I.RECOGNISINGTHEPOTENTIALANDHARNESSINGTHEOPPORTUNITIESOFHYDROGEN4tember2018,theFederalGovernmenttogetherwith27otherEuropeannationsandtheEuropeanCom-missionadoptedaEuropeanhydrogeninitiativeanddeclaredhydrogentechnologyandsystemsavaluechainofstrategicinterest.TheFederalGovernmentwillmakeuseofthismomentumtocontinuetoadvocatehydrogentechnologyduringitsupcomingPresidencyoftheCounciloftheEUandinlinewiththeprinciplessetoutinthisstrategy.Itwillbeforthecompetentministriestoensurethatthemeasuresareimplementedandfinancedonthebasisoftheexistingbudgetestimatesandfinancialplans.55BytablingtheNationalHydrogenStrategy,theFed-eralGovernmentisprovidingacoherentframeworkforthegeneration,transportanduseofhydrogen,encouragingtherelevantinnovationsandinvest-ment.TheStrategysetsoutthestepsthatareneededtomeettheGermanclimatetargets,createnewvaluechainsfortheGermaneconomyandfosterenergypolicycooperationatinternationallevel.Itfocusesinparticularonthefollowinggoals:AssumingglobalresponsibilityTheFederalGovernmentrecognisesGermany’srespon-sibilitytoreducegreenhousegasemissionsglobally.Bydevelopingthehydrogenmarketandpromotinghydrogenasadecarbonisationoption,ourcountrycanmakeakeycontributiontoclimatechangemiti-gationaroundtheworld.MakinghydrogenacompetitiveoptionThecurrentframeworkdoesnotallowhydrogentobegeneratedandusedinaneconomicallyviablemanner.Fossilfuelsinparticularcontinuetobemuchcheaperasthecostofcarbonemissionsisnotincludedintheirprice.Inorderforhydrogentobecomeeco-nomicallyviable,weneedtocontinuetobringdownthepriceofhydrogentechnology.Inordertodriveforwardtechnologicalprogressandeconomiesofscaleandpromptlyobtainthecriticalmassofhydro-genneededforsomeinitialsectorstoswitchtothenewtechnology,theproductionanduseofhydrogenneedtobespedupglobally.Aparticularfocusisbeingplacedonareasthatarealreadyclosetocommercialviabilityandwheremajorpathdependenciescanbeavoided,orwhichcannotbedecarbonisedinotherways,asisthecaseforprocess-relatedemissionsinthesteelorchemicalsindustry,orincertainpartsofthetransportsector.Inthelongerterm,partsoftheheatmarketwillalsobefocusedon.DevelopingadomesticmarketforhydrogentechnologyinGermany,pavingthewayforimportsThefirststepthatneedstobetakentospeeduptherolloutofhydrogentechnologyisestablishingastrongandsustainabledomesticmarketfortheproductionanduseofhydrogenathome.Astrongdomesticmar-ketwillsendanimportantsignal,encouragingothercountriestousehydrogentechnologyaswell.Ger-manywilldesigntheincentivesforspeedinguptherolloutofhydrogentechnologyinGermanyandpar-ticularlyfortheestablishmentandoperationofelec-trolysersinawaythatiscompatiblewiththeenergytransition.TheFederalGovernmentexpectsthataround90to110TWhofhydrogenwillbeneededby2030.Inordertocoverpartofthisdemand,Germanyplanstoestab-lishupto5GWofgenerationcapacityincludingtheoffshoreandonshoreenergygenerationfacilitiesneededforthis.Thiscorrespondsto14TWh2ofgreenhydrogenproductionandwillrequire20TWhofrenewables-basedelectricity.Itneedstobeensuredthatthedemandforelectricitythatiscreatedbytheelectrolyserswillnotleadtoanincreaseincarbonemissions.TheFederalGovernmenthasincludedamonitoringmechanismintheNationalHydrogenStrategywhichwillbeusedtotrackthedevelopmentofgreenhydrogendemandindetail.Anadditional5GWofcapacityaretobeadded,ifpossibleby2035andnolaterthan2040.However,thedomesticgenerationofgreenhydrogenwillnotbesufficienttocoverallnewdemand,whichiswhymostofthehydrogenneededwillhavetobeimported.ThereareseveralplacesacrosstheEUwherelargequantitiesofrenewables-basedelectricityarebeinggenerated.Theseoffergreatpotentialforpro-ducinggreenhydrogen.TheFederalGovernmentwillworktoensurethatthispotentialistappedandthatthegenerationcapacitiesarefurtherexpanded.TothisII.TheNationalHydrogenStrategy–goalsandambitions2Assumption:4,000hoursfull-loadhoursofelectrolyseroperationandanefficiencyratioof70%.6II.THENATIONALHYDROGENSTRATEGY–GOALSANDAMBITIONSend,itwillintensifyitscooperationwithotherEuro-peanMemberStates,particularlythoseborderingtheNorthandBalticSea,butalsowiththecountriesofsouthernEurope.Theuseofoffshorewindenergywillplayanimportantrole.TheFederalGovernmentwillworkwiththeNorthandBalticSeeborderstatestopushforwardhydrogenproductionbyestablishingareliableregulatoryframeworkforoffshorewindenergy.Italsoaimstosystematicallydevelopproduc-tionsitesinotherpartnercountries,forexampleaspartofdevelopmentcooperation.TheFederalGov-ernmentseekstoprovidesuppliers,consumersandinvestorsinGermanyandabroadwiththesecuritytoplanahead.Thiswillrequireworkingwiththerelevantpartnercountriestolaunchaninvestmentandinnovationcampaign.TheFederalGovernmentwilluseitsHydrogenStrategytopromotetheestablishmentofproductioncapacityandnewsupplychainsandpro-videourpartnercountrieswiththerelevanttechnol-ogyandtargetedsolutions.Thiswillboostemploy-mentbothinGermanyandourpartnercountriesandpavethewayforlong-termeconomicgrowth.TheActionPlanfortheNationalHydrogenStrategyandthecurrentbudgetandfinancialestimatesserveasthebasisforspeedinguptherolloutofhydrogentechnology.Shoulditbecomeclearthatthedemandforhydrogenwilldevelopmorestronglythanexpected,theNationalHydrogenStrategywillbeenhancedaspartoftheevaluationprocess.EstablishinghydrogenasanalternativeforotherenergysourcesHydrogentechnologyandthealternativesourcesofenergyderivedfromitareanintegralpartoftheenergytransitionandcontributetoitssuccess.Somesectorssuchasairandmaritimetransportorindus-triesinwhichprocess-relatedemissionsareunavoid-ablewillbeimpossibleorverydifficulttoelectrify,eveninthelongterm.Thisappliesinparticulartoaviation,partsofheavy-dutytransport,mobilesys-temsforthedefenceofourcountryandtheAlliance,andmaritimetransport,wheremanyroutesandapplicationscannotbeoperatedusingelectricityalone.Thisiswhythefossilinputandfossilfuelsneedtobereplacedbyrenewables-basedalternatives,forexamplejetfuelproducedthroughPtX.MakinghydrogenasustainablebasematerialfortheindustrialsectorHydrogenisanimportantbasematerialfortheGermanindustrialsector(itisusedforexampleinthechemi-calsindustryorsteelproduction).Around55TWhofhydrogen–mostofitproducedfromfossilenergysources–isusedforindustrialapplicationsinGer-manyeachyear.Theseneedtoswitchtoaproductionbasedongreenhydrogentotheextentpossible.Inadditiontothis,hydrogenandhydrogen-basedPtXcommoditiesneedtobeusedtodriveforwardthedecarbonisationofemission-intensiveindustrialpro-cesses,whichwillopenupnewfieldsofapplicationforhydrogenandPtXcommodities.Forexample,itisestimatedthatmorethan80TWhofhydrogenwouldbeneededtomakeGermansteelproductionGHG-neutralby2050.Around22TWhofgreenhydrogenwouldbeneededforGermanrefineryandammoniaproductiontoswitchtohydrogen.Germa-ny’sindustrialsectoralreadyhasdemandforhydro-genandthisdemandisexpectedtogrowheavilyinthefuture.Thismeansthattheindustrialsectoriswell-placedtobecomeoneofmainfactorsspeedingupthemarketrolloutofhydrogenandaglobalpio-neerforhydrogentechnology.EnhancingtransportanddistributioninfrastructureDevelopingandputtinginplacetherighttransportanddistributioninfrastructureiskeyinordertobeabletoimportanddevelopthesalesmarketsforhydrogenandtheproductsderivedfromit.Germanyhasawell-developedgasinfrastructureconsistingofatightly-knitnaturalgasnetworkandthegasstorage7II.THENATIONALHYDROGENSTRATEGY–GOALSANDAMBITIONS7unitsconnectedtoit.Inordertoharnessthefullpotentialofhydrogen,wewillenhanceourtransportanddistributioninfrastructureandcontinuetoensurethattheuseofhydrogenapplicationsissafe.Thisincludesbuildingandexpandingadedicatedhydrogennetwork.TheFederalGovernmentwillrevisitanddeveloptheregulatoryframeworkandthetechnicalrequirementsforthegasinfrastructure.Forexample,itwillexaminewhethernaturalgaspipe-lineswhicharenolongerneededtotransportnaturalgas(forexampleLgas)canbeconvertedintohydro-geninfrastructureandinvestigatewhetherthecom-patibilityofexistingorupgradedgasinfrastructurewithhydrogencanbeensured.Fosteringscience,mobilisingskilledlabourResearchisastrategicelementunderpinningenergyandindustrialpolicy.Onlybydevelopinglong-termresearchandinnovationprogrammesthatcovertheentirehydrogenvaluechain–fromstorage,transportanddistributionallthewaytoitsuse–willitbepos-sibletoestablishhydrogenasakeytechnologyfortheenergytransition.Hydrogensolutionsneedtobesys-tematicallydevelopedtothestageofpracticaluseatindustrialscaleby2030.InordertofurtherstrengthenthegoodpositionofGermancompaniesandresearchinstitutesonhydrogen,weshouldrecruit,trainandfosteroutstandingscientists,newtalentandskilledstaffandengageinclosedialoguewithotherleadingresearchnations.Thegovernmentalsoplanstoplaceastrongerfocusonestablishingnewresearchinsti-tutes,settingupcentresofexcellenceandbuildingeducationalandresearchcapacityaimedatregionswhichareparticularlyaffectedbystructuralchange.ShapingandaccompanyingtransformationprocessesTheenergytransitionandtheincreaseduseofrenew-ableenergymeanthatallstakeholdersneedtoadaptinmanyways.Wewillworkwithbusinesses,scien-tistsandthegeneralpublictolookathowhydrogencanmakeacontributiontotheenergytransition.Wewillstartadialogueprocesstoaccompanytheneces-sarytransformationsandprovideassistancetothestakeholderswherenecessary.StrengtheningGermanindustryandsecuringglobalmarketopportunitiesforGermanfirmsGermanynowhasthechancetoplayakeyroleininternationalcompetitionforthedevelopmentandexportofhydrogenandPower-to-X(PtX)technolo-gies.Thebroad-basedcommunityofGermanstake-holdersinthehydrogentechnologyfield,withtheirgoodinternationalconnections,willnotonlybeakeyfactorforthesuccessfulmarketramp-upofhydrogentechnologiesinGermany,butwillalsoimprovetheopportunitiesofGermanfirmsonthisforward-lookingmarket.Themanufactureofcompo-nentsforthegenerationanduseandforthesupplyofhydrogenwillcontributetoregionalvaluecrea-tionandstrengthenthecompaniesactiveinthesefields.Forthistohappen,attentionisbeingpaidintheimplementationofthehydrogenstrategyandinparticularinthefundingmeasurestoensuringthatallofGermany’sregionsbenefitfromthenewpoten-tialforgrowthderivingfromthehydrogeneconomy.Thefosteringofthemarketramp-upofhydrogentechnologiesalsomakesanimportantcontributiontowardscopingwiththeeconomicimpactofthecoronaviruspandemic,andlaysafurtherfoundationstoneforasustainableorientationofGermanindus-try.EstablishinginternationalmarketsandcooperationforhydrogenWeneedtopreparethefuturesupplyofhydrogenanditsdownstreamproductsanddesignittobesus-tainable.Thisisbecause,inthemediumtolongterm,Germanywillimportsubstantialquantitiesofhydro-8II.THENATIONALHYDROGENSTRATEGY–GOALSANDAMBITIONSgen.Wesharewithotherfutureimportersaninterestintheswiftestpossibleestablishmentofaglobalhydrogenmarket.Inviewoftheirpotentialforrenewableenergy,thecountriescurrentlyproducingandexportingfossilfuelsalsohaveattractiveoppor-tunitiestoconverttheirsupplychainstotheuseofrenewableenergyandhydrogen,andthustobecomepotentialsuppliersofhydrogen.Inthisway,thesecountrieswillbealsoabletobenefitinthelongtermfromexistingtraderelations.Here,itisimportanttoensurethatlocalmarketsandalocalenergytransi-tioninthepartnercountriesarenotimpeded,butarefosteredbytheproductionofhydrogen.Internationaltradeinhydrogenandsyntheticdown-streamproductswillnotonlycreatenewtraderela-tionsforGermanyandtheEU,butalsofacilitateafurtherdiversificationofenergysourcesandtrans-portroutes,andwillthusimprovethesecurityofsup-ply.Internationaltradeinhydrogenanditsdown-streamproductswillthusbecomeasignificantindus-trialandgeopoliticalfactorwhichcreatesaneedforstrategicobjectivesanddecisions,butalsooffersfreshopportunitiesforallsides.RegardingglobalcooperationasanopportunityThereisasensearoundtheworldthathydrogentech-nologiesareonthevergeofexcitingprogress,andwewishtoworkwithourpartnersaroundtheworldtoutilisethispositivemoodandmakerapidtechnologi-calprogress.Atinternationallevel,thecooperationwithpotentialsuppliersandotherimporterspro-motestheircontributiontowardsclimatechangemit-igationandcreatesopportunitiesforsustainablegrowthanddevelopment.Possibilitiesforjointpro-jectsandtriallingoftechnologyexistintheareaoftheNorthSeaandinsouthernEuropeinparticular,andalsointhecontextoftheFederalGovernment’senergypartnershipsandcooperationwiththepartnercountriesinGermandevelopmentcooperation.Buildingupandsecuringthequalityassuranceinfrastructureforhydrogenproduction,transport,storageanduse,andbuildingtrustThespecialphysicalandchemicalpropertiesofhydrogenmeanthatarobustqualityassuranceinfra-structureforthedevelopmentandinparticularthemonitoringoffacilitiestoproduce,transport,storeandusehydrogenisessential.Thechiefcomponentsofthismeasurementandqualityassuranceinfra-structurewhichneedstobebuiltupandnetworkedatnationalandEuropeanlevelaremetrologyandphysicalandchemicalsafetytechnology.Inparticular,thereisaneedforscientificallyacceptedandregu-latedmeasurementmethodsandassessmentcriteria,andinternationallyacceptedstandardsandtechnicalstandards.Furthertothis,ahighlevelofsafetyneedstobeestablished.Negativeeventsandaccidentscanunderminepublicacceptanceofhydrogentechnol-ogy.Thereisaneedtobuildtrustamongsttheusers.ImprovingthepolicyenvironmentandaddressingcurrentdevelopmentsonanongoingbasisTheimplementationandfurtherdevelopmentoftheNationalHydrogenStrategyisanongoingprocess.Thestatusofimplementationandtargetachievementissubjecttoregularreviewbyanewcommitteeofstatesecretariesforhydrogenfromthevariousminis-tries;thisbodywillalsodecideonthefurtherdevel-opmentandimplementationoftheStrategy.Thestatesecretaries’committeeissupportedandadvisedbyaNationalHydrogenCouncilwithhigh-levelexpertsfromscience,businessandcivilsociety.TheStrategywillbesubjecttoafirstevaluationafterthreeyears.Onthisbasis,theFederalGovernmentwillthenconsiderthefurtherdevelopmentoftheStrategy,includingthenecessarymeasuresforthis.9´ThestatusquoandexpectedtrendsforhydrogenanditsdownstreamproductsDomestichydrogenconsumptioncurrentlyamountstoroughly55TWh.Thegreatestdemandforhydro-genislinkedtomaterialproductionprocessesinindustryandisevenlydistributedbetweenthebasicchemicals(productionofammonia,methanol,etc.)andpetrochemicalssector(productionofconven-tionalfuels).Thebulkofthehydrogenbeingusedintheseprocessesis‘grey’hydrogen.About7%ofdemand(3.85TWh)isbeingmetviaelectrolysis(chlo-ralkali)processes.Sincesomeofthehydrogenusedinthepetrochemicalsindustry,inparticular,doesnothavetobeproducedfromscratch,butisavailableasaby-productofotherprocesses(e.g.catalyticreform-ing),thecurrentlevelofhydrogenconsumptionofaround55TWhcannotentirelybesubstitutedwith‘green’hydrogen.ThefuturedevelopmentofthehydrogenmarketinGermany,butalsoglobally,willfundamentallydependonthelevelofambitiondisplayedbyclimateactionpolicyandtheattendantstrategiesbeingpur-sued.InthelightoftheParisAgreementandtheFed-eralGovernment’scommitmenttothegoalofachiev-inggreenhousegasneutralityby2050,thehydrogenmarketislikelytoexhibitthefollowingtrendsinthefuture:By2030,followingmarketpenetration,hydrogendemandissettoexperienceaninitialincrease–espe-ciallyintheindustrialsector(chemicals,petrochemi-cals,steel)and,toalesserextent,inthetransportsec-tor.Accordingtoconservativeestimates,thedemandinindustrywillriseby10TWh.Inaddition,growingdemandisexpectedtocomefromfuel-cell-drivenelectricvehicles.Otherconsumers(e.g.partsoftheheatingsector,inthelongterm)mightfollow.Ifthe2050carbonneutralitygoalistobereached,hydrogentechnologieswillalsohavetoplayanimportantroleinGermany.Accordingtothescenar-iosanalysedbyvariousstudiesthatconsidertheeffectsontheentireenergysysteminthecaseofa95%reduc-tionofGHGemissionsagainstthe1990baseline,theforecastconsumptionofelectricity-basedenergysourcesin2050willbebetween110TWh(Klimaschutzszenarien[ClimateActionScenarios]bytheFederalMinistryfortheEnvironment,NatureConservationandNuclearSafety)androughly380TWh(Klimapfade[ClimatePaths]bytheBDI,theFedera-tionofGermanIndustries).Alongsidetheindustrialandtransportsectors,long-termdemandwillalsoariseinthetransformationsector.Theshapeofthefuturepolicyframework,particularlyasregardscli-mateactionambitionsandtheattendantstrategiesbeingpursued,willhaveadecisiveimpactonthedevelopmentofoveralldemandandconsumptionlevelsintheindividualsectors.TheNationalHydrogenStrategyistargetedatthefol-lowingstrategicmarketsofthefuture:HydrogenproductionToenablethemarketpenetrationandexportofhydrogentechnologies,adomesticmarketisindis-pensable–onethatprovidesastrongandsustainablebasefortheproductionanduseofhydrogenwhilefurtheringtheenergytransition.Ifhydrogenistohavelong-termprospectsofbeingusedinasustaina-bleandeconomicalway,capacitiesforgeneratingelectricityfromrenewables(particularlywindpowerandphotovoltaics)mustbesystematicallyimproved.IndustrialsectorIncertainindustrialsectors,thetransformationtowardscarbonneutralitywillnotbepossibleusingconventionaltechnologies.Inthesesectors,gaseousandliquidsourcesofenergyhavetobegraduallyreplacedbyalternativetechnologies,pavingthewayfortheuseofalternativeresourcesorprocesseswitheitherzeroorverylowcarbonemissions.Manyoftheseprocesseswill,inthelongterm,enabletheuseofhydrogenandproductsderivedfromit.Inrefiner-iesandpartsofthechemicalindustry,inparticular,itIII.Hydrogen:statusquo,fieldsofaction,andmarketsofthefuture10III.HYDROGEN:STATUSQUO,FIELDSOFACTION,ANDMARKETSOFTHEFUTUREisalreadypossibletodaytosubstitutegreenhydrogenfor‘grey’hydrogenwithoutanyadjustmentsbeingnecessary.Moreover,existinginfrastructuresofthechemicalindustry,e.g.hydrogennetworks,cancon-tinuetobeusedandpossiblybeexpandedoropti-misedforotherapplicationssuchasinthesteelsec-tor.Forexample,hydrogenwillsoonbeusedwithinpilotprojectsinthesteelindustry,whereitcanhelpsubstitutehigh-emissionblastfurnaceprocesseswiththedirectreductionofironore.Theaimis,whereverpossible,tochannelupcominginvestmentsinpro-ductionfacilitiesonanindustrialscaleintoclimate-friendlytechnologies.Therefore,hydrogenissettoplayanimportantlong-termroleinsafeguardingtheattractivenessofGermany’sindustrialsector.TransportMobilityapplicationsoffergreatpotentialforhydro-genuses.Thetransportsectormustbecommittedtotechnologicalprogressifitistoreachthesector-spe-cificclimateandrenewablestargets.Hydrogen-basedorPtX-basedmobilitycanbeanalternativeoptionforthoseapplicationswhereusingelectricitydirectlyisnotreasonableortechnicallyfeasible.Thisincludesmilitaryapplicationsthatmustbeabletoensureinteroperabilitybetweenallies.Inthelongterm,airandmaritimetransportinpar-ticularwilldevelopademandforcarbon-neutralfuelswhichcanbesuppliedintheformofhydro-gen-basedenergysourcesfromPtXprocesses.Bothairandmaritimetransportrelyonsyntheticfuelstoachievedecarbonisation.Inairtransportaswellascoastalandinlandnavigation,fuelcellsandbat-tery-powereddrivesmayalsobeanoptionforcertainmobilityneeds.However,technologicaladvancesarestillnecessaryinthisfield.Inawiderangeofsectors–suchaslocalpublicpas-sengertransport(buses,trains),partsofheavy-dutyroadtransport(trucks),commercialvehicles(e.g.foruseinconstructionworkoragricultureandforestry)orlogistics(deliverytraffic;othercommercialvehiclessuchasforklifttrucks)–theintroductionoffuelcellvehiclescancomplementbattery-poweredelectricmobilityandhelpsignificantlyreduceairpollutantandcarbonemissions.Incertainsegments,hydrogenmayalsoprovideanalternativeforcars.Ifhydrogenistobeusedinroadtransport,refuellinginfrastructuremustbeexpandedasneeded.ItisimportanttoprovideconstructiveandtargetedsupportfortheGermanautomotiveandsupplierindustryasitundergoesthisstructuraltransforma-tion.Withaviewtofuelcelltechnology,forexample,thegoalistostrengthenGermany’smachineryandplantmanufacturingsectorandtoaspiretogloballeadershipintheendeavourtoimprovethecost,weight,andperformanceparametersoffuelcellcom-ponents(stacks,pressuretanks,etc.).HeatmarketEvenaftertheefficiencyandelectrificationpotentialsforprocessheatgenerationandthebuildingsectorhavebeenharnessed,therewillcontinuetobelong-termdemandforgaseousfuels.Inthelongrun,hydrogenanditsdownstreamproductscanhelpinvariouswaystodecarbonisepartsoftheheatmarket.HydrogenasacollaborativeEuropeanprojectTheissuesandconditionsthathavetobeaddressedinordertofosterthedomesticramp-upofhydrogentechnologiesandtobuildupaninternationalhydro-genmarketcanonlybesuccessfullyhandledwithinthecontextoftheEuropeaninternalmarketandreg-ulatoryframework.AshydrogentechnologiesgaingroundinotherEUMemberStates,itisbecomingincreasinglyimportanttodevelopaEuropeaninter-nalmarketforhydrogen.TheEUbenefitsfromtheNorthSea’sideallocationsforwindenergyandthegreatpotentialforphotovoltaicsandwindenergyofferedbysouthernEurope.Thispotentialcanrepre-sentagreatlong-termopportunityforgeneratingrenewablehydrogen.Also,Europe’swell-developedgasinfrastructuremayprovidepossibilitiesforthe11III.HYDROGEN:STATUSQUO,FIELDSOFACTION,ANDMARKETSOFTHEFUTUREtransportofhydrogen.Inordertolaythefoundationsforaninternalmarket,weneedastrongEuropeanframework.KeychallengescanonlybemeaningfullyaddressedinthecontextoftheEU.Thus,cross-bordercollaborationisindispensableinordertofindsolu-tionsforthegenerationofwindandsolarenergyintherespectiveareasandforthedistributionofhydro-gen.Itisalsoessentialasregardsregulatorylaw,invest-mentconditions,andthesharingofexperience.Fur-thermore,actionatEuropeanandinternationallevelisrequiredtoestablishclearsustainabilitystandardsfortheproductionandtransportofhydrogen,andtosetthestageforthesystematisationandenvironmen-talclassificationofelectricity,hydrogen,andsyn-theticdownstreamproducts.Bystartingoutearlytodevelopstandardsandapolicyenvironmentinthisfield,theEUcanplayapivotalroleinshapingthebasicinternationalframework.Progressalsoneedstobemadeonthestateaidframeworktotakeaccountoftherisingoperatingcostslinkedtotheuseofhydro-geninthesteelandchemicalindustries,forexample.Germanywilltakeonanactiveroleinsettingupamarketforhydrogenandestablishingsustainabilitystandards,shareitsexperiencewiththeenergytransi-tion,anduseitsCouncilPresidencytoplaceacentralfocusontheframeworkforsectorcouplingandthedevelopmentofanEUinternalmarketforhydrogen.WithintheEU,theFederalGovernmentwilladvocatethatkeyaspectsofthisstrategyinfluencethedevel-opmentofaEuropeanhydrogenstrategy.InternationaltradeIfGermanyistoreachitsclimatetargetsfor2030anditsGHGneutralitytargetfor2050,importingrenewa-bleenergyfrombeyondtheEuropeaninternalmar-ketwillbecomeamediumandlong-termnecessity.Internationaltradeinhydrogenanditsdownstreamproductsisthereforeasignificantindustrialandgeo-politicalfactor.Atinternationallevel,cooperationwithpotentialsuppliersandimporters,ifbasedonthepartners’needs,canpromotetheircontributiontowardscli-matechangemitigation,speeduptheramp-upofhydrogentechnologies,andcreateopportunitiesforsustainablegrowthanddevelopment.Itispossible,forexample,toagreeonambitiousstandardsforcer-tificationandforthesustainabilityofhydrogenpro-duction,andtoincreasemarketvolumes.Existingformsofcollaboration,notablywiththeenergypart-nershipsoftheFederalGovernment,butalsowiththepartnercountriesinGermandevelopmentcoopera-tionortheInternationalClimateInitiative,offerprospectsforjointprojectsandfortestingimportroutesandtechnologies.Besidesthese,furtherinitia-tivesforinternationalcooperationmayemerge.Cur-rentfossilfuelexportersmayplayaparticularlyprominentroleiftheyoffergreatpotentialforhydro-genproduction.Indevelopingcountriesinparticular,itisvitaltoensurethattheexportofhydrogenwillnotbedetrimentaltopossiblyinadequateenergysup-plysystemsintheexportingcountriesconcernedandthusincentiviselocalinvestmentinevenmorefossilfuels.Therefore,theproductionofgreenhydrogenistoactasastimulusforthesecountriestorapidlyexpandtheircapacitiesforgeneratingrenewableenergy–thesewill,afterall,alsobenefitlocalmarkets.Thetraderelationsneededforthehydrogenmarketraisecomplicatedgeopoliticalquestionsthatpolicy-makershavetoaddressasearlyaspossible.Buttheyalsoprovidemanyopportunities–forexampleforexpandingtheEU’sinternalenergymarket,establish-ingnewinternationalvaluechains,furtheringcoop-erationwiththosepartnercountrieswithinGermandevelopmentcooperationthatoffergreatrenewableenergypotentialforPtXproduction,andforexpand-ingexistingorcreatingnewtraderelationswithenergyexporters.TransportanddistributioninfrastructureinGermanyandabroadInordertobeabletoimportanddevelopsalesmar-ketsforhydrogenanditsdownstreamproducts,therighttransportanddistributioninfrastructure,espe-ciallyasregardstransmissionsystems,mustbein12III.HYDROGEN:STATUSQUO,FIELDSOFACTION,ANDMARKETSOFTHEFUTUREplace.Germanyhasawell-developedgasinfrastruc-tureconsistingofatightly-knitnaturalgasnetworkandthegasstorageunitsconnectedtoit.Infuture,partofthisinfrastructureistobeusableforhydrogenaswell.Furthernetworksaretobecreatedexclusivelyforthetransportofhydrogen.GivenGermany’sgeo-graphicallocationanditsroleasanimportanttransitcountrywithinEurope,thesetransformationpro-cessescanonlybesuccessfullyshapedincooperationwithitsEuropeanneighboursandassociatedthirdcountries.Consistentqualityandsustainabilitystandardsandsuitabledocumentationprocedureshavetobeestablishednotonlyfortheproduction,butalsothetransportofhydrogenandassociatedemissions.Asinothercountries,buildingupahydrogenmarketinGermanyentailstechnicalchallengesforseveralcomponentsoftheinfrastructureandforcertaindevicesandinstallationsemployedbyendusers.Thatiswhythenecessarytransformationprocesses(‘hydrogenreadiness’,etc.)mustbeenabledandiniti-atedasearlyaspossible.Inordertoavoidmisallo-catedinvestments,however,thistransformationpro-cessshouldbeorientedtothedemandthatcanbeexpectedinviewofthe2050carbonneutralitygoal.Especiallyasfarasinternationaltradeisconcerned,importantoptionsfortransportinghydrogenincludePtXdownstreamproductsorLOHCs(LiquidOrganicHydrogenCarriers).Liquidhydrogen,PtL/PtGdown-streamproducts,andLOHCscanbetransportedeasilyandsafelyoverlongdistances.Here,existingtrans-portcapacitiesandtherelevantinfrastructuremaybeusedandnewcapacitiescreated(e.g.pipelines,meth-anolandammoniumtankers).Underthemotto‘Ship-pingthesunshine’,researchcouldprovideanunprec-edentedopportunitytotapnewpotentialforthelarge-scalegenerationandtransportofgreenhydro-gen.Long-distancetradingofPtXproductscancom-plementthetransportofhydrogenviapipelinesys-tems.Itisimportanttoavoidgreenhousegasemis-sionsinconnectionwiththetransportofhydrogen.Research,education,innovationResearchisastrategicelementunderpinningenergyandindustrialpolicy.Thanksnotleasttothelong-termapproachandreliabilityoftheFederalGovern-ment’sresearchfunding,GermancompaniesandresearchestablishmentsarepioneeringhydrogenandotherPtXtechnologies.Acrosstheworld,Germaninstitutionalfundingfinancesoutstandingresearchfacilitiesandinfrastructuresandhelpstotransposecutting-edgeresearchintopractice.Wearecommittedtoprovidingresearchfundingforkeyenablingtechnologiesandnewapproachesthatcovertheentirehydrogenvaluechain–fromgenera-tionandstorage,transportanddistributionallthewaytoapplication.Byintegratingforward-lookingbasicresearchwithtargetedapplication-basedresearch,wecansetthestageforkeyenablingtech-nologiessuchaselectrolysis-basedorbio-basedpro-cessesofhydrogenproduction,methanepyrolysis(‘turquoise’hydrogen),artificialphotosynthesis,andfuelcells.Itisimportanttotakeintoaccountthepar-ticularitiesofindividualsectorssuchasairtransport,maritimetransport,andindustry,andtoharnesspotentialspill-overeffectsacrossthevariousfieldsofapplication.Wearealsoassessingtheopportunitiesthatmayarisewithregardtonaturalhydrogenresources.Wefundresearchintheknowledgethatthefindingsmadetodaywillbetheinnovationsoftomorrow.Bridgesmustbebuiltbetweenresearchandpractice.Apartfromtheregulatorysandboxesfortheenergytransition,wealsorelyonthetried-and-testedformatofcollaborativeprojectswithstrongpartnersfromthebusinessandsciencecommunities.Duetothelongrun-upperiodsfromresearchtoapplication,itisnecessarytofosterapplication-basedenergyresearchsothatwecanreachourtargetsintime.Wearestrengtheningthepre-competitivecoopera-tionbetweenscienceandbusinessalsointhefieldof13III.HYDROGEN:STATUSQUO,FIELDSOFACTION,ANDMARKETSOFTHEFUTUREappliedbasicresearch.FlagshipprojectssuchasCar-bon2ChemandtheKopernikusprojectsdemonstratehowcutting-edgescienceandinnovativecompaniescansuccessfullycooperate.Weusetheseexperiencestodevelopinternationallyvisibleandexportable‘showcase’initiativesforhydrogentechnologies.Amongotherthings,ourresearchfocusesonhydro-genapplicationssuchasdirectreductionasameansofreducingcarbonemissionsinthesteelandchemi-calindustries.Nowisthetimetoputlaboratoryinnovationsintopractice–fasterthanweusedtointhepast–andtoenabletheirindustrialroll-out.Tospeedupthetrans-ferofinnovationforkeyenablingtechnologies,par-ticularlyinthefieldofhydrogen,andtohelpthesetechnologiesbecomemarketablemorequickly,theregulatorysandboxesfortheenergytransitionhavebeenestablishedasanewfundingpillarofenergyresearch.TheNationalDecarbonisationProgrammealsohelpstospeedupthewayinnovativeclimatetechnologiesthatrelyonhydrogenaremadeavailableandusedthroughoutindustry.Hydrogenisalsoaneducationissue:thehydrogenindustryneedsskilledworkers,bothinGermanyandabroad.Thisiswhywewillexplorenewhorizonsforthecooperationbetweeneducationandresearch.1414Aflexibleandresults-orientedgovernancestructurewillbecreatedtomonitortheimplementationofthestrategyanddevelopitfurther(cf.Figure1).AStateSecretaries’CommitteeonHydrogen,com-posedoftherelevantministries,willprovidecontin-uoussupportfortheactivitiesundertheNationalHydrogenStrategy.Intheeventofdelaysinimple-mentationorafailuretomeetthetargetsoftheStrat-egy,theStateSecretaries’Committeewillimmedi-atelytakecorrectiveactionincoordinationwiththeFederalCabinet,adaptingtheactionplantothenewrequirements.TheaimistoensurethattheNationalHydrogenStrategyremainsinlinewithmarketdevel-opmentsanddeliversonitsoveralltargets.TheFederalGovernmentwillappointaNationalHydrogenCouncil.TheCouncilismadeupof26high-levelexpertsfrombusiness,science,andcivilsocietywhoarenotpartofthepublicsector.ThemembersoftheCouncilshouldhaveexpertiseinthefieldsofproduction,researchandinnovation,decar-bonisationofindustry,transportandbuildings/heat,infrastructure,internationalpartnerships,aswellasclimateandsustainability.Initsfirstmeeting,theCouncilelectsoneofitsmembersasChair.ThetaskoftheNationalHydrogenCouncilistoadviseandsupporttheStateSecretaries’Committeethroughproposalsandrecommendationsforactioninimple-mentingandenhancingtheHydrogenStrategy.TheCouncilandtheStateSecretaries’Committeeholdregularjointmeetingsinordertofacilitatecoordina-tionbetweentheFederalGovernmentandtheCouncilandtoensuretheCouncil’sworktiesincloselywiththeactivitiesofthevariousministriesduringtheimple-mentationoftheNationalHydrogenStrategy.Also,designatedrepresentativesoftheministriesconcerned(e.g.fromthecompetentDirectorates-General)attendtheCouncil’smeetingsasguests.AttherequestoftheLänder,twoLänderrepresentativesmayattendthemeetingsasguests.TheNationalHydrogenCouncilmeetsatleasttwiceayear.IV.GovernancefortheNationalHydrogenStrategyStateSecretaries´CommitteeonHydrogenCordinationOfficeProjectmanagementSecretariatStrategicmanagement:decidesontargets,objectives,actionplan,etc.SupportsministriesandCouncilProjectstructureforimplementingtheStrategyAdvisesandmakesrecommendationforaction,providesspecialistsupportMeasuresareimplementedbyresponsiblegovernmentrepresentativesincooperationwithrelevant(alsointernational)partnersDevelopsMonitoringandsupportsSupportsAdvisesandsupportsCoordinatesMeasure1Measure2Measure3ActionPlanMeasure4ElectedbythemembersoftheNationalHydrogenCouncil1e.gatDirector-GenerallevelNationalHydrogenCouncilMinistry1undLänderrepresentativesasguestProduction,research,andinnovation,decarbonisationofindustry,transport,andbuildings/heat,infrastructure,internationalprtnerships,climateandsustainabilityMonitoringreportChairFigure1:GovernancestructureoftheNationalHydrogenStrategy15IV.GOVERNANCEFORTHENATIONALHYDROGENSTRATEGY15thebasisforanextendedreport,tobepreparedeverythreeyears,whichprovidesanoverallevaluationofthestrategyandactionplanandsuggestshowthesecanbedevelopedfurther.TheaimonthisbasisistoensuretheNationalHydrogenStrategyiskeptinlinewithmarkettrendsanddeliversonitstargets.CooperationbetweentheFederalGovernmentandtheLänderAsidefromthemeasurestakenatfederallevel,theLänderhavealsobeenplanningandimplementingtheirownhydrogen-relatedmeasuresthatarejustasimportantintermsofthecreationofahydrogeneconomyandtheleadershipofGermancompanies.Closecooperationbetweenthefederalandstatelevelshelpstocoordinateactivities,usesynergies,avoidpathdependencies,sharevaluableexperience,anddefinefurtherstepsofaction.Forthispurpose,theFederalGovernmentwillsoon(duringthefirsthalfof2020)establishasuitableplatformformat(e.g.intheformofaFederation-LänderWorkingGrouponHydrogen)andmakesuretheLändergovernmentsarekeptinformedabouttheactivitiesoftheHydrogenCoun-cil.Existingnetworks,initiatives,andworkinggroupsfocusingonhydrogenwillbetakenintoaccountand,whereappropriate,serveasabasisforfurtheractivi-ties.The‘GreenHydrogen’InnovationOfficeroftheFed-eralMinistryofEducationandResearch(BMBF)isapermanentguestoftheStateSecretaries’CommitteeandtheNationalHydrogenCouncil.TheOfficerisinchargeoftheorganisationofresearchanddevelop-mentactivitiesconductedbytheBMBF,andcoordi-natestheirimplementationincooperationwiththegovernment,business,andsciencerepresentativesthatareinvolvedintheprocess.Furthermore,theOfficerensuresthatpromisinginnovativeapproachesandstimuliarisingfromtheresearchthatiscon-ductedundertheresponsibilityoftheBMBFenterthepoliticalrealmandaretakenupbypublicdebate.TheFederalGovernmentisestablishingaHydrogenCoordinationOfficealongsidetheNationalHydrogenCouncil.OnbehalfoftheFederalGovernment,thesecretariatoftheCoordinationOfficeassiststhemin-istriesinimplementingtheHydrogenStrategy,andtheHydrogenCouncilincoordinatinganddraftingrecommendationsforaction.TheCoordinationOfficeisalsoresponsibleformonitoringtheNationalHydro-genStrategy.Furthermore,itactivelysupportstheministriesintheimplementationoftheStrategybyprovidingaflexibleprojectmanagementstructure.Tothisend,thematictaskforcesareestablishedattheCoordinationOffice.Anannualmonitoringreportprovidesabasisforrec-ommendationsanddecisionstobemadebytheHydrogenCouncilandtheStateSecretaries’Commit-tee.Thereportnotonlygivesanaccountoftheover-allprogressmadeonthecreationofahydrogenecon-omy,butalsooutlinesanyunexpectedchallengesthatmayhavearisenduringthereferenceperiodandidentifiesthestepsthathavetobetaken.ItalsoplacesparticularfocusontheEuropeanandinternationaldimensions.Therelevantindicatorsonwhichthereportisbasedarecontinuouslycollectedandevalu-atedaspertainingtothevariousfieldsofaction(e.g.theelectrolysingcapacityinstalledinGermany,Europe,andotherrelevantcountries;theamountofhydrogenandproductionmethodsacrossdifferentfieldsofapplication).Thesemonitoringreportsform16IntablingthisActionPlanfortheNationalHydrogenStrategy,theFederalGovernmentislayingthebasisforprivateinvestmentinhydrogengeneration,trans-portandusethatisbotheconomicallyviableandsus-tainable.ThiscanalsoplayapartinmitigatingtheimpactoftheCOVID-19crisisandrevivingtheGer-manandEuropeaneconomies.Inafirstramp-upphaseuntil2023,theFederalGovernmentwilltakeanumberofmeasuresinthefieldslistedbelow.Itwillbeforthecompetentministriestoensurethatthemeasuresareimplementedandfinancedonthebasisoftheexistingbudgetestimatesandfinancialplans.However,thereisalsoacross-cuttingdimensiontotheNationalHydrogenStrategyandtherewillbeastrongfocusonasystemicapproach.Thismeansthatsupplyanddemandwillalwaysbeconsideredtogether.ThemeasuressetoutintheActionPlanarethoseforphaseoneoftheNationalHydrogenStrategy,i.e.thephaseupto2023,bywhichtimetheramp-upistobeginandthebasisforawell-functioningdomesticmarkettobelaid.Paralleltothis,essentialissuessuchasresearchanddevelopmentandinternationalaspectsaretobetackledaswell.Thenextphase,whichisduetobeginin2024,isaboutstabilisingthenewlyemergingdomesticmarket,mouldingtheEuropeanandinternationaldimensionofhydrogen,andusingitforGermanindustry.Thisshowsthatcontinuousdevelopmentisabuilt-infeatureoftheNationalHydrogenStrategy.HydrogenproductionReliable,affordable,andsustainablewaysofproduc-inghydrogenareessentialforitsfutureuse.Nowisthetimetoconstructdemonstrationplantsatanindustrialscaleandscaletheseupfurthertoensurethatthecostofhydrogenproductiondegressescon-siderably.Measure1Abetterframeworkfortheefficientuseofelectric-ityfromrenewables(e.g.bymeansofsectorcou-pling)andafairdesignoftheenergypricecompo-nentsinducedbythestate,inlinewiththeclimatetargetsandthetargetsfortheenergytransition(fosteringgridstability),soastocreategreaterscopefortheproductionofgreenhydrogen.TheintroductionofCO2pricingforfossilfuelsusedintransportandtheheatingsectorisanimportantelementhere,andwillbecomplementedbyareductionoftheEEGsurchargeasenvisagedintheV.ActionPlan:stepsnecessaryfortheNationalHydrogenStrategytosucceedPhase1Startmarketramp-up,HarnessopportunitiesPhase2Strengthenmarketramp-upNationally&Internationally20202023203017V.ACTIONPLAN:STEPSNECESSARYFORTHENATIONALHYDROGENSTRATEGYTOSUCCEED172030ClimateActionProgramme.This,however,willnotbesufficientinthelongandmid-termstoensureaviablebusinessenvironmentforcompa-niesoperatingplantsfortheproductionofgreenhydrogeninGermany.BeyondwhathasbeenagreedintheClimatePackage,wewillthereforeexplorethepossibilityofadditionalreformofthepricecomponentsinducedbythestatewhilstcon-tinuingtoestablishCO2pricingasakeyguidinginstrument.Ouranalysiswillalsoincludetheques-tionastowhetheritmightbepossibletolargelyexemptelectricityusedfortheproductionofgreenhydrogenfromtaxes,levies,andsurcharges.Inpar-ticular,weareworkingtowardsexemptingthepro-ductionofgreenhydrogenfromtheEEGsurcharge.Aswedoso,wewillensurethattheEEGsurchargeduesnotrise.Measure2Alsobeingexploredarepossibilitiesfornewbusi-nessandcooperationmodelsforoperatorsofelec-trolysersandforgridandgasnetworkoperatorsinlinewiththeprincipleofregulatoryunbundling(resultsexpectedin2020).Wewanttolaunchoneortwomodelprojectstotesthighlypromisingapproachesthatcouldsignificantlyeasetheburdenonthegridsatanaffordablepricewithoutdistort-ingthehydrogenmarket.Worktoexploreanypotentialneedforamendingtheregulatoryframe-worktomakethispossibleisbeingundertaken.Measure3AspartofourClimateActionInnovationPact,wearealsosupportingtheswitchovertohydrogenintheindustrialsectorbyprovidingfundingforinvestmentsinelectrolysers(implementationstartsin2020,formoredetailsontheClimateActionInnovationPactandthesupportforhydrogenapplicationsintheindustrialsectorcf.Measure14).Wearealsoexploringpotentialtenderingschemesfortheproductionofgreenhydrogen,e.g.tohelpdecarbonisethesteelandchemicalindustries.Ifnecessary,thefinancingthathasbeenearmarkedfortheNationalDecarbonisationProgrammewillbetoppedupasneeded.Measure4Duetothehighnumberoffull-loadhours,off-shorewindenergyisanattractiverenewablestech-nologythatcanbeharnessedfortheproductionofgreenhydrogen.Theframeworkforthisisbeingdevelopedfurthertoensurethatinvestmentsinthisareapayoff.Potentialadjustmentsthatwillbediscussedincludethedesignationofadditionalareasthatcanbeusedforoffshoreproductionofhydrogen/PtX,theinfrastructurenecessaryforthis,andthepotentialforadditionalauctionroundsfortheproductionofrenewables(implementationstartsin2020).FieldsofapplicationReliabledemandandgreateruseofhydrogenarebothneededforthehydrogenmarkettocontinuetodevelop.Thereareeconomicreasonswhythehydro-genramp-upmustproceedinatargetedwayandincrementally.Forthisreason,itsuseasanalterna-tivefuelinsomeareasofthetransportsectorandasabasesubstanceforrecyclingandareductiveinhigh-priorityindustrialapplicationsistobeincreased.High-priorityinthiscasewillbefieldsinwhichtheuseofhydrogenisclosetobeingeconomicallyviableintheshortormediumterm,inwhichnomajorpathdependencyisbeingcreated,orinwhichtherearenoalternativeoptionsfordecarbonisation.18V.ACTIONPLAN:STEPSNECESSARYFORTHENATIONALHYDROGENSTRATEGYTOSUCCEED18TransportMeasure5Theuseofgreenhydrogenfortheproductionoffuelandasanalternativetoconventionaltypesoffuelistobeembeddedaspartofaswiftandambi-tionstranspositionoftheEURenewableEnergyDirective(REDII)intoGermanlaw(implementa-tionin2020).Keylevershereinclude:•AnambitiousGHGreductionratiowillincreasetheshareofrenewablesintransport.Ifcom-binedwithspecificothermeasures,itcanpro-videincentivesfortheuseofhydrogenorhydrogenproductsasanalternativefuelfortransport.Forthisreason,theFederalGovern-menthasdecidedtomakeitsobjectivetoincreasetheminimumshareofrenewablesinGermany’sfinalenergyconsumptionintrans-portsignificantlybeyondwhatisrequiredunderEUrulesby2030.AtargetwillbesetintheFederalImmissionControlAct;thisActstipulatesagreenhousegasemissionsreductionrateforthetransportsectorwhichistobedevelopedfurtheraslaiddownintheCoalitionAgreement.•Theuseofgreenhydrogenfortheproductionofconventionalfuelisasensiblewayofhar-nessinghydrogenandmakesarealcontributiontotheeffortstoreducegreenhousegasemis-sionsfromtransport.WewillthereforebeusingtheopportunitypresentedbythetranspositionofREDIIintoGermanlawtoallowfortheuseofgreenhydrogenfortheproductionoffuelstobecountedtowardsthegreenhousegasreduc-tionrate.Furthermore,wewillseektodesignthelegislationtransposingtheREDIIintonationallawinsuchawaythatgreenhydrogencanbeusedfortheproductionoffuelassoonaspossible.Wewanttocreateclearincentivesforinvestmentsinelectrolyserssothattheramp-upcanstartsoon.Ourgoalistohaveelectrolysingcapacityofaround2GWinstalledinGermany.Ifnecessary,wewillalsoprovidefinancialsupportforthis.•Asairtraffic,inparticular,willcontinuetorelyonliquidfuelfortheforeseeablefuture,kero-senefromrenewableshasanimportantroletoplayforclimatechangemitigation.Inprinciple,itwouldthereforeseemtomakesensetoimposearequirementonsupplierstouseelec-tricity-basedjetfuel,fortheproductionofwhichgreenhydrogenisneeded.Ananalysisisneededtofindoutwhatamountsofkerosenecanbetechnicallyandsustainablyproducedbywhattime.Intheinterestofanambitiousmar-ketramp-up,aminimumquotaof2%isbeingdiscussedfor2030.Whenadoptingalegalrequirement,itisimportanttoavoidasituationwherebytheGermanaviationindustrywouldfinditselfatacompetitivedisadvantage.TheFederalGovernmentwillthereforeworkwithitsEuropeanpartnerstoadvocateamultilateralrequirement.•Acrossallfieldsofapplication,auniformandtransparentmethodologyforestablishingthecarbonfootprintofenergyproductsandforassessingtheirlevelofsustainabilityisessentialforthenational,European,andglobaltradeinalternativeenergysources.WewillbegettingactivelyinvolvedinthesediscussionsatEuro-peanlevelatanearlystage.Alloftheothermeasureslistedbelowareongoingandwillcontinuethrough2020.Thisnotablyappliestothedevelopmentofnewfundingguidelinesthatcanbeusedasabasisforcallsforfundingapplica-tions.SomemeasureshaveyettobenotifiedtotheEuropeanCommissionandapprovedbythem.Callsforfundingapplicationsareduetotakeplaceregu-larly,beginningin2020.19V.ACTIONPLAN:STEPSNECESSARYFORTHENATIONALHYDROGENSTRATEGYTOSUCCEEDMeasure6ThefundingmeasuresundertheNationalInnova-tionProgrammeforHydrogenandFuelCellTech-nology(NIP)willcontinue.TheadditionalfundingavailablefromtheEnergyandClimateFund(ECF)until2023leavesgreaterscopeforhydrogenandfuelcelltechnology.•Marketactivationtoboostinvestmentsinhydrogen-poweredvehicles(lightandheavy-dutyvehicles,buses,trains,inlandandcoastalnavigation,carfleets);inadditiontotheNIPfunding,fundingfromtheECFisalsoavailableforalltechnologiesincludinghydrogenapplica-tions(until2023):•€2.1billioninpurchasegrantsforelectricvehicles;•€0.9billioninpurchasegrantsforutilityvehiclespoweredbyalternative,cli-mate-friendlydrivelinetechnology;•€0.6billionforthepurchaseofbuseswithalternativedrivelines.•R&Eactivitieswiththeobjectiveofachievingfurthercostreductions(e.g.forutilityvehicles,smallaircraft);•“HyLand–hydrogenregionsinGermany”asathree-tieredapproachforthedevelopment,finetuning,andimplementationofintegratedregionalhydrogenconcepts.Theplanistoextendthisfundingstrategythatwassuccess-fullyimplementedin2019.Measure7Developmentofandfundingforinstallationsfortheproductionofelectricity-basedfuels,inpar-ticularelectricity-basedkerosene,andadvancedbiofuels.Forthismeasure,€1.1billionfromtheEnergyandClimateFund(ECF)hasbeenear-markeduntil2023.Measure8Fundingfortheconstructionofaneeds-basedrefuellinginfrastructureforvehicles,includingheavy-dutyroadhaulagevehicles,vehiclespublictransportandinlocalpassengerrailservices(cf.Measure20).Intotalandforallalternativetechnol-ogiescombined,€3.4billioningrantsforthecon-structionofarefuellingandcharginginfrastruc-turecanbemadeavailablefromtheEnergyandClimateFund(ECF).Ifnecessary,thefundingforthehydrogeninfrastructurewillbemadeavailableatanearliertime.Underits2030ClimatePro-gramme,theFederalGovernmentwantstodevelopconceptsfortheconstructionofhydrogenrefuel-lingstationsforcommercialvehicles.Aspartoftheeffortstopromotetheuseofgreenhydrogeninheavy-dutyroadhaulage,thenetworkofhydrogenrefuellingstationswillbequicklyexpanded.Measure9AdvocacyforanambitiousdevelopmentoftheEuropeaninfrastructurefacilitatingcross-bordertransportpoweredbyfuel-cells;recastoftheEuro-peanAlternativeFuelsInfrastructureDirective(AFID)(implementationbeginsin2021).Measure10Supportfortheestablishmentofacompetitivesupplyindustryforfuel-cellsystems(fuelcellsandrelatedcomponents)includinganindustrialbasisforlarge-scalefuel-cellstackproductionforvehicleapplications,explorationofthepossibilityofcreat-ingacentreforhydrogentechnologyandinnova-tiontofacilitatetheemergenceofvehicleplat-formsforfuel-celldrivelinesandsupportfortheestablishmentofafuel-cellsystemssupplierforlogistics/intra-logistics.20V.ACTIONPLAN:STEPSNECESSARYFORTHENATIONALHYDROGENSTRATEGYTOSUCCEEDMeasure11Target-driventranspositionoftheCleanVehiclesDirective(CVD)tosupportzero-emissionsvehiclesinlocaltransport.Measure12Advocacyforacarbon-baseddifferentiationofthetrucktollwithreducedratesforclimate-friendlydrivelinesundertheEurovignetteDirective.Measure13Advocacyforaninternationalharmonisationofstandardsformobilityapplicationsforhydrogenandfuel-cell-basedsystems(e.g.refuellingstand-ards,hydrogenquality,officialcalibration,hydro-gen-poweredcartypeapproval,licencingforshipsetc.).IndustrialsectorMeasure14Theinternationalcompetitiveenvironmentmakesitimpossibletofullypassonthecostofinvestmentinzero-carbontechnologiestothecustomer.ThisiswhytheFederalGovernmenthaslaunchedsev-eralprogrammesunderwhichitrewardstheswitchoverfromconventionalfossil-fuelbasedtechnologiesthatcomewithinherentemissionstoindustrialprocessesthatarelowingreenhousegasemissionsorevenclimateneutral.Theswitchovertohydrogenasabasesubstanceandfueliskeytothis,particularlyinthesteelandchemicalindus-tries.Thetoolsavailableforthisarethefundfor‘Decarbonisingtheindustrialsector’andthepro-grammesfor‘hydrogenuseinindustrialproduc-tion’(2020-2024)and‘avoidingandusingCO2inindustriesrelyingonbasesubstances’.Measure15Aspartoftheeffortstopromoteclimate-friendlyindustrialprocedures,wearenotonlyprovidinginvestmentgrants,butalsosupportingtheuseofelectrolysers.Forthispurpose,theFederalGovern-mentwilllaunchanewpilotprogrammeentitled‘CarbonContractsforDifference(CfD)’,whichmostlytargetsthesteelandchemicalindustrieswiththeirprocess-relatedemissions.Underthisprogramme,theFederalGovernmentwillguaran-teethatitwillprovidefundingamountingtothedifferencebetweentheactualcostofavoidingemissions/aproject-basedcontractuallyagreedcar-bonpriceperamountofgreenhousegasemissionsavoided,andtheETSpricesfortheconstructionandoperationofdecarbonisationtechnologiestoachievegreenhousegasneutrality.ShouldthefutureETSpriceriseabovethecontractuallyagreedcarbonprice(i.e.thecostofavoidingemissionsfortherespectivetechnology),companieswouldbeboundtopaybackthedifferencetotheFederation.Thistypeofprogrammedeliversareliableinvest-mentenvironmentandcreatesincentivesfortheearlyimplementationofclimateprojectswhichinturnwillcreateindirectincentivesfortheproduc-tionofhydrogenandtheramp-upofhydrogentechnologies.Oncethepilotphasehasbeensuc-cessfullycompleted,itwillbepossibletoexpandthistypeofinstrumenttootherindustrialsectors.WeareaimingforclosecoordinationwiththeEuropeanCommission.Measure16Increasingthedemandforindustrialproductsmanufacturedusinglow-emissionprocessesandhydrogen.TheFederalGovernmentwantstoencourageworkatnationalandEuropeanleveltoexploresolutionsastohowthemarketsforcli-mate-neutralandrecycledproductscanbeboostedinenergy-intensiveindustries.Ademandquotaforclimate-friendlybasesubstances,e.g.greensteel,isbeingconsidered.Suchmeasureswouldrequirea21V.ACTIONPLAN:STEPSNECESSARYFORTHENATIONALHYDROGENSTRATEGYTOSUCCEEDclearandambitiouslabeltomarkoutthemorecli-mate-friendlyorsustainableintermediateandendproductsinawaythatiseasytounderstand.Measure17Develophydrogen-basedlong-termdecarbonisa-tionstrategiestogetherwithstakeholders–par-ticularlyfromtheenergy-intensiveindustries–withinsector-specificdialogueformats(beginningin2020forthechemical,steel,logistics,andavia-tionsectors,withotherstofollowstep-by-step).•Chemicalindustries:Thechemicalindustriesalreadyhaveahighdemandforhydrogenasafeedmaterial,andmostlyusegreyhydrogenforthispurpose.Oneoftheaimsofthediscussionswiththissectoristoexplorewaysinwhichgreyhydrogencouldincreasinglybesubstituted.Thisistobeachievedinawaythatrespectsthesup-plychainsinthechemicalindustriesanddoesnotcreateanylock-ineffects.Forinstance,itisenvisagedthatthehithertousedfossil-basedmaterialscouldbereplacedwithnewcarbonsources(CCU,DACetc.),whichinturnwouldprovideforacarbon-neutralrawmaterialsbasisforchemicalreactionsandchemicalproduc-tion.Bythesametoken,therearealsoareaswherethereisexcesshydrogenproduction,forinstanceinchlorine-alkali-electrolysis,whichreleaseshydrogenasaby-product.Thistypeofuntappedpotentialshouldberegisteredandreviewedforpotentialusability.•Steelindustry:Dialoguewiththisindustrywillfocusonthefollowingissues(amongothers):Alternativeprocesses,suchasinjectinghydro-genintoblastfurnacestoavoidgreenhousegasemissionsinatransitionalperiod,and,moreimportantly,directH2reductionindedicatedinstallations,canmakeanessentialcontribu-tiontowardsdecarbonisingsteelproduction.Carboncaptureanduse(CCU)isalsobeingtestedinexploratoryprojects.Bearinginmindtheinvestmentcycles,wewanttoprovideforasecurebasisforplanning.Thisparticularlyappliestotheframeworkandtopotentialsup-portfordirectinvestments.•Logistics:Theuseofhydrogentechnologyinhaulagewilldependonadjustmentsalongtheentiresupplychain.Dialogueontheprospectsforhydrogeninthelogisticssectoristotakeplaceshortlywithintheinnovationcommissionforthe‘InnovationProgrammeforLogistics2030’.Thefocuswillbeonhowvehiclemanu-facturers,andsuppliersofinfrastructure,energyandfuelscanworkwithlogisticscompaniestocoordinatetheirproductrangeswithoneanothersothathydrogentechnologiescanbeusedfordecarbonisingheavy-dutytransport.•Aviation:Aspartofthe‘RoundTablefortheAviationIndustry’,thechallengesforaviationthatstemfromtheParisAgreementwillbedis-cussed.Thisisanotherareainwhichhydrogentechnologiescanplayapart.•Othersectors:Otherapplicationsthatwillnotbeabletorelycompletelyonrenewables,eveninthelongterm,orwhichareassociatedwithunavoidableandhighprocessemissions,willhavetobepoweredbyalternativesourcesofenergyorclosetheircarboncycles(e.g.byusinghydrogen-basedCCUoptions).Again,dialogueisneededtoprepareforthenecessaryadjust-mentstomaketheregulatoryframework–includingtheoneatEUlevel–sustainable(e.g.developmentofamethodtocountCCUtowardscarbonreductiontargets).22V.ACTIONPLAN:STEPSNECESSARYFORTHENATIONALHYDROGENSTRATEGYTOSUCCEEDHeatMeasure18Asfarasthebuildingsector(residentialandnon-residentialproperty)isconcerned,wehavehadourEnergyEfficiencyIncentiveProgrammeforhighly-efficientfuel-cellheatingsystemsinplacesince2016.TheFederalGovernmentwillcon-tinuetoprovidethisfundingand,ifnecessary,topitup.Furthermore,thescopeofapplicationofthisfundingisassessedwithaviewtoexpandingit.Fortheperiodfrom2020-2024,upto€700millionhasbeenearmarkedwithintheEnergyEfficiencyIncentiveProgrammeandthefutureFederalCom-pensationAct,andthismoneycanalsobeusedforfundingfuel-cellheatingsystems.Measure19Withaviewtostrengtheningthelong-termshiftoftheheatingsectortowardstheuseofrenewables,theFederalGovernmentislookingatwaysofpro-vidingfundingfor‘hydrogenreadiness’installa-tionsundertheCombinedHeatandPowerAct.Infrastructure/supplyAsecure,reliableandneeds-basedhydrogensupplythatisefficientoverallwillbekeytothefuturehydro-genmarket.Thiscanbeachievedbydrawingonthepotentialofexistinginfrastructureasneeded,andini-tiatingtheconstructionofnewelementsofthesup-plyinfrastructureifnecessary.Thefollowingmeas-uresaretobetakeninthisrespect:Measure20Theneedforlong-termactionwithinthistransfor-mationprocessisbeingassessedtogetherwiththerelevantstakeholdersandareportcompiled,com-pletewithrecommendationsforaction.Thismeansthatthepossibilitiesforusingexistingstructures(dedicatedhydrogeninfrastructureaswellaspartsofthenaturalgasinfrastructurethancanbeadjustedandbackfittedtomakeitH2-ready),start-ingwiththesuppliertotheendconsumer,needtobediscussedandinitiatedintime.Thesameappliesforpossibilitiestore-dedicateandre-usepipelinesetc.forfuturehydrogensupply.Thenecessaryreg-ulatorybasisfortheconstructionandexpansionofahydrogeninfrastructurewillbepreparedswiftly.Forthispurpose,amarketexplorationprocedureistotakeplaceshortly.Measure21Effortstobetterlinkuptheelectricity,heat,andgasinfrastructurewillcontinue.Theaimistoshapetheplanning,financing,andtheregulatoryframeworkinawaythatmakesitpossibletocoor-dinatethesedifferentpartsoftheinfrastructureanddevelopthemasrequiredinlinewiththeneedsoftheenergytransitionandinacost-effi-cientway.Inthiscontext,itisnecessarytoconsiderthepotentialoftheexistinghydrogeninfrastruc-turewhilstalsoensuringitscompatibilityintheEUcontext(workinprogress;outcomesofalong-termstudycommissionedbytheFederationwillbeavailablein2ndsemester2020).Measure22Asanewinfrastructureisbeingcreated,specialattentionmustbegiventoaneedsbasedexpansionofthenetworkofhydrogenrefuellingstationsinroadtransport,atsuitablelocationswithintherail-waynetwork(e.g.MunicipalTransportFinancingAct),andforthewaterways(cf.fieldsofapplica-tion).Targetgroupshereincludeindividualusersandoperatorsofalargefleetofhydrogen-poweredorfuel-cell-poweredvehicles.23V.ACTIONPLAN:STEPSNECESSARYFORTHENATIONALHYDROGENSTRATEGYTOSUCCEEDResearch,education,innovationNewfundinginitiativesforresearchandinnovationalongtheentirehydrogenvaluechainaretolaythebasisforfuturesuccessonthemarket.Wearebun-dlingtogetherseveraltargetedfundingmeasurestomakeresearchandinnovationastrategicelementoftheFederalGovernment’senergyandindustrialpol-icy.Thisworkisrootedinthe7thEnergyResearchProgramme.Thefocusfortheshortandmediumtermwillbeonthefollowingmeasures:Measure23Ajointhydrogenroadmapthatistoserveasguid-ance:Germanywantstopositionitselfasaleadproviderofgreenhydrogentechnologyontheglobalmarket.Forthispurpose,aroadmapfortheGermanhydrogenindustrywillbedevelopedtogetherwiththescienceandbusinesscommuni-tiesandcivilsociety.Thisroadmapisdesignedtohaveinternationalrippleeffects.Theapplicationscenariosthereinwillbeusedtodecidewherethereisneedforresearchandaction.(Begins:1stsemester2020).Measure24Intheshortterm,demonstrationprojectsongreenhydrogenwillbesetupwiththehelpofresearchbeingconductedintointernationalsupplychains.Theaimhereistoaddresssomefundamentalques-tionsandaspects:idealandtypicalsupplyandtechnologyrelationsaretobedeveloped;robustandmodularsolutionstobetestedglobally.Pro-ductionsiteslocatedinourpartnercountriesunderourdevelopmentcooperationaretobeincludedinthis(begins1stsemester2020).Measure25Anewcross-ministryresearchcampaignentitled‘hydrogentechnologies2030’willseeastrategicbundlingtogetherofresearchactivitiesintohydro-gen-relatedkey-enablingtechnology.(Implemen-tationbeginsinQ22020).Keyelementsoftheresearchcampaigninclude:•‘regulatorysandboxesfortheenergytransition’soasbringupPtXtechnologiesthatareclosetomarkettoanindustrialscaleandacceleratetheprocessofinnovationtransfer;•large-scaleresearchprojectsentitled‘hydrogeninthesteelandchemicalindustries’thatpavethewayforclimateneutrality;•projectsinthetransportsectorthatwilluseresearch,developmentandinnovationtofur-therbringdownthecostofhydrogentechnol-ogies;•feasibilitystudiesandatlasesofpotentialtohelppinpointeconomicallysuitablegloballoca-tionsforafuture,greenhydrogenindustry.Thisworkwilltakeintoaccountfuturedevelop-mentsofenergyneedsandofthenaturalresourcesavailableinthevariouscountries;•internationalnetworksandR&EcooperationtopreparenewmarketsforGermantechnologyexports;•theestablishmentofanewresearchnetworkonhydrogentechnologiestofosternetworkingandanopendialoguebetweenbusinessandsci-encethatcaninformpublicfundingpolicy.TheresearchcampaignwillalsosupporttheNationalInnovationProgrammeforHydrogenandFuelCellTechnologies(cf.Measure6).24V.ACTIONPLAN:STEPSNECESSARYFORTHENATIONALHYDROGENSTRATEGYTOSUCCEEDMeasure26Apro-innovativeframeworkistopavethewayfortheuseofhydrogentechnologiesinreallife.Assess-mentsarebeingdonetotestifandwhatmeasuressuchasresearchandexperimentationclausescouldhelptestthemarketentryofhydrogentech-nologiesandfacilitatetheirtransferintopractice.Withintheshortterm,apioneeringprojectforsci-entificpolicyadviceistobesetup.TheprojectistolaythebasisforpracticalworktofurtherdevelopthenationalandEuropeanlegalframeworktoallowforalarge-scaleroll-outofapplicationsfortheproduction,storage,transport,anduseofhydrogenandforrelatedbusinessmodelsthatareeconomicallyviable.Thisincludesthedevelop-mentofaquality-assuranceinfrastructurethatmeetsallthesecurityrequirements,completewithanassessmentofthesystems’andinstallations’efficiency,andofabillingsystemthatisincompli-ancewithcalibrationlawandisbasedonreliablemeteringprocedures.AnyobstaclesexistingunderthenationalorEuropeanlegalframeworkmustbeidentifiedandproposalsforitsdevelopmentmade(beginsQ22020).Measure27ThetargetssetoutintheEuropeanFlightpath2050documentaresupportedbyGermany’sAviationResearchProgramme.Thisprogrammewillcon-tinuewithnewfundingforhybridelectricaviation.Fortheperiodbetween2020and2024,atotalof€25millionfromtheAviationResearchProgrammehasbeenearmarkedforhydrogentechnologies(measurehasstarted):•developingoverallsystemscapabilitiesinthenewfieldofhybridelectricaviation,e.g.onthebasisofdisruptiveenginetechnology(e.g.fuelcells,hydrogen-poweredgenerators,compactandreliablehybridelectricenginesonthebasisofhydrogenfuelcells)andsustainablegroundpower(multi-functionalfuelcells).•flighttestswithhydrogen-poweredandhybridelectrictechnologies(combinationofhydro-gen/fuelcells/batterytechnology)forregionalaircraftandpreparationofthesetechnologiesforcommercialwide-bodiedaircraft.Measure28Continuationofthefundinginstrumentsfor‘Maritime.Green’(greenshipping)assetoutintheMaritimeResearchProgramme.AtEUlevel,apartnershipinitiativefor‘Zero-EmissionsWater-borneTransport’isunderpreparationforthenewHORIZONEuropeprogramme.Thetargethereistodevelopazero-emissionsvesselwithclosedcycleofsubstances.Approx.€25millionhasbeenearmarkedfortheMaritimeResearchProgrammefrom2020-2024,aportionofwhichcanbeusedforhydrogen-relatedwork.(measurehasstarted)Measure29Fostereducationandvocationaltrainingnationallyandinternationally:wearesupportingandfurtherdevelopingvocationalandscientifictrainingandcontinuingeducationinthefieldofhydrogentech-nologiessoastopavethewayforindividualwork-ersandcompaniestobeabletohandlehydrogentechnologiesefficientlyandsafely.Thisworkisfocusedonimpartingknowledgeandskillstothestaffthataretoproduce,operate,anddomainte-nanceworkinfieldswherehydrogenhassofarplayednomorethanaminorrole.Theseincludeplantmanufacturingand,inthetransportsector,garagestaffthataretoservicevehiclespoweredbyfuelcells.Inadditiontoskilledprofessionals,wealsoneedoutstandingscientistsandupcomingsci-entists.Thisiswhyweareventuringintonewwaysofcooperationbetweentrainingandresearch,forinstancebysettingupcentresofexcellenceatnon-universityresearchinstitutionsandinstitutesofhighereducation.Wearealsoworkingwith25V.ACTIONPLAN:STEPSNECESSARYFORTHENATIONALHYDROGENSTRATEGYTOSUCCEEDexportmarketstofostercooperationonvocationaltrainingandarestrengtheningoureffortsforcapacitybuildingwithspecialprogrammes,forinstanceforPhDstudents(implementationstarts2021).NeedforactionatEuropeanlevelTheGermanEUCouncilPresidencyoffersagoodopportunityinthesecondhalfof2020toproactivelyprogresskeyhydrogen-relateddossiers,e.g.inthecontextofthepreparationsforthelegislativepackageonsectorcouplingandgasmarketdesign.Thesepar-ticularlyincludetheHydrogenActionPlanenvisagedbytheEuropeanCommissionandthestrategyonSmartEnergySystemIntegration.Measure30Toensurethatamarketcandevelopwhichcon-tributestotheenergytransitionandtodecarboni-sation,aswellasboostingexportopportunitiesforGermanandEuropeancompanies,thereisaneedforreliablesustainabilitystandardsandforasophisticatedqualityinfrastructure,proof(ofori-gin)forelectricityfromrenewableenergyandforgreenhydrogenanditsdownstreamproducts.AtEuropeanlevel,wewanttosetsustainabilityandqualitystandardsinthefieldofhydrogenandPtXproducts,andthustoactivelyfostertheestablish-mentoftheinternationalhydrogenmarket.ThisincludessupportforthedevelopmentofEuropeanregulations,codesandstandardsinthevariousfieldsofapplicationwhichwillformtheground-workfortheinternationalmarketandensurethatthemarketramp-upinGermanytakesplaceinlinewiththeneedsoftheenergytransition.Inparalleltothis,Germanywillalsointensifythedialogueoncommonstandardswithothercountriesinordertopavethewaytowardsauniversalisationininter-nationalorganisations.Measure31AtEUlevel,wewishtointensifyinvestmentinresearch,developmentanddemonstrationofgreenhydrogen.OneoptionisthecreationofanewImportantProjectofCommonEuropeanInterest(IPCEI)forthefieldofhydrogentechnologiesandsystemsasajointprojectwithotherMemberStates.Thefocushereshouldbeontheentirevalueandusechainforhydrogen(generation,transport,distribution,use).Tothisend,theFederalGovern-mentisproactivelyapproachingtheEuropeanCommissionandEUMemberStatesinordertoattractsupportforsuchaprojectandtoinitiateitsrealisation(ongoingprocess).Measure32AgainstthebackgroundoftheEuropeanGreenDeal,theFederalGovernmentisnotleastworkingtowardsanacceleratedimplementationoftheEUhydrogeninitiatives.Furthertothis,onthebasisofthisstrategyitissupportingthedraftingofaGreenPaperbytheCommissionmappingoutthepro-spectivecontentofanEUHydrogenStrategy.Ajointmarketramp-upofhydrogentechnologieswilltapeconomiesofscaleandcreatethebasisforasuccessfulinternalhydrogenmarket.Measure33TheestablishmentofaEuropeanhydrogencom-panytopromoteanddevelopjointinternationalproductioncapacitiesandinfrastructureisbeingexploredandwillbeprogressedifthereissufficientEuropeanbacking.26V.ACTIONPLAN:STEPSNECESSARYFORTHENATIONALHYDROGENSTRATEGYTOSUCCEEDInternationalhydrogenmarketandexternaleconomicpartnershipsInternationalcooperationinthefieldofhydrogenoffersopportunitiesinthefieldsofeconomicpolicy,climatechangemitigation,foreignpolicyanddevel-opmentpolicy.Weaimtomakeuseofthis,andthecoalitioncommittee’s“packageforthefuture”of3June2020offersanadditional€2billionforthis.Wearethereforesteppingupoureffortstobuildupandintensifyinternationalcooperationonhydrogenatalllevels.Inadditiontothedevelopmentofhydrogentechnologiesandmarketstogetherwiththepartnercountries,thefocusisalsoonpossibilitiesandoppor-tunitiestoconvertproductionandtheexportoffossilfuelstohydrogen.Thefollowingmeasurescontributetowardsthis:Measure34Theintegrationofhydrogenintoexistingenergypartnershipsandtheestablishmentofnewpart-nershipswithstrategicexportingandimportingcountriescreatesnewprospects,e.g.bymakingitpossibleforpartnercountriestouseGermantech-nologytoexporthydrogenproducts,tomaketheireconomieslessdependentonfossilfuels,andtomeetGermany’sneedforhydrogen.Forexample,useistobemadeofexistingenergypartnershipswithpartnercountries–particularlyviatheestab-lishmentofspecificspecialisedworkinggroups–inordertodevelopsustainableimportpotentialforhydrogen-basedfuelsandsalesmarketsforGer-manhydrogentechnologies.Thisalsotakesaccountofthefuturedevelopmentofdomesticenergyrequirementsandtheavailabilityofnaturalresourcessuchaswaterintherespectivecountries.Here,theenergypartnershipswillalsobecontrib-utingtothedecarbonisationandeconomicdevel-opmentofthecountriesexportingthehydrogen.Measure35Wewillrapidlyprogressthecooperationwithpart-nercountriesinthecontextofahydrogenallianceincoordinationwithEUinitiatives.Theenvisagedcooperationwillfocusoncollaborationalongtheentirevaluechain.ThiswillcreateaplatformforGermancompaniestopositionthemselvesonfor-eignmarkets.Also,Germanfirmswhichneedthefuelwillfinditeasiertoobtainclimate-neutralhydrogen.(Launchofinitiativein2020)Measure36Wewillstrengthentheexistinginternationalactiv-ities,particularlyinthecontextoftheenergypart-nershipsandofmultilateralcooperation,suchasthatoftheInternationalPartnershipforHydrogenandFuelCellsintheEconomy(IPHE),theInterna-tionalRenewableEnergyAgency(IRENA)andtheInternationalEnergyAgency(IEA),andwewillmakeuseofthemtoprogressthesupra-regionalaspectsofhydrogen.Here,thecompilationofatlasesofpotentialforthegenerationofgreenhydrogenanditsdownstreamproductswillhelpwiththeidentificationoffuturecountriesofdesti-nationandopportunitiestoexportinstallations(cf.alsoMeasure25).Tothisend,informationistobecompiledandpooledtoshowwhichformsofenergycanbebestproducedinthepartnercoun-triesinthelightoftheirgeneralparameters.Aspe-cialfocuswillbeplacedoncountrieswithactiveGermandevelopmentcooperationandtheirpotentialforhydrogenproduction.Accountmustalsobetakenofthegrowingneedforenergyandtheavailabilityofnaturalresourceslikewater.AtlasesofpotentialforselectedcountriesofGer-mandevelopmentcooperationwillbeproducedintimefortheGermanEUCouncilPresidency.(Implementationfromfirsthalfof2020)27V.ACTIONPLAN:STEPSNECESSARYFORTHENATIONALHYDROGENSTRATEGYTOSUCCEEDMeasure37Pilotprojectsinpartnercountries,notleastaspartofGermandevelopmentcooperationinvolvingGermanfirms,aretoshowwhetherandhowgreenhydrogenanditsdownstreamproductscanbepro-ducedandmarketedthereonasustainableandcompetitivebasis.Conceptsforthisaretobedevel-oped,andspecificimplementationoptionsdrawnup.Here,attentionwillbepaidtoensuringthatanimporttoGermanyofgreenhydrogenorenergysourcesbasedonittakesplaceontopofdomesticenergyproductionintherespectivepartnercoun-triesanddoesnotimpedethesupplyofrenewableenergy,whichisinadequateinmanycases,inthedevelopingcountries.Also,thesustainablesupplyofwaterinaridregionsofthesecountriesmustnotbeimpairedbytheproductionofhydrogen.Theaimistoachievesustainableproductionalongtheentiresupplychain.Thisprojectistomakeuseoftheopportunitiesofferedbythehydrogenmarketasakeycomponentofpartnership-baseddevelop-mentcooperation,andthustogivethepartnercountriesfreshopportunitiesforsustainablevaluecreation,energyandjobs,aswellasincentivesforadecarbonisationoftheireconomiesandtheestab-lishmentofsustainablesupplychains(implemen-tationfrom2020).Measure38Inrelationswiththecurrentexportersoffossilfuels,theFederalGovernmentwillintensifythedialoguewithaviewtoagradualglobalenergytransitionincludinghydrogen.Freshopportunitiesaretobetakenwhichareofferedbyanatleastpar-tialsubstitutionoffossilfuelsbyhydrogen,notleastwithimportantenergypolicystakeholders.28Greyhydrogen:Greyhydrogenisbasedontheuseoffossilhydrocarbons.Greyhydrogenismainlyproducedviathesteamreformingofnaturalgas.Dependingonthefossilfeedstock,itsproductionentailsconsiderablecarbonemissions.Bluehydrogen:Bluehydrogenishydrogenwhichisproducedusingacarboncaptureandstorage(CCS)system.ThismeansthattheCO2producedinthepro-cessofmakinghydrogendoesnotentertheatmos-phere,andsothehydrogenproductioncanberegardedonbalanceascarbon-neutral.Greenhydrogen:Greenhydrogenisproducedviatheelectrolysisofwater;theelectricityusedfortheelec-trolysismustderivefromrenewablesources.Irrespec-tiveoftheelectrolysistechnologyused,theproduc-tionofthehydrogeniszero-carbonsincealltheelec-tricityusedderivesfromrenewablesourcesandisthuszero-carbon.Turquoisehydrogen:Turquoisehydrogenishydro-genproducedviathethermalsplittingofmethane(methanepyrolysis).ThisproducessolidcarbonratherthanCO2.Thepreconditionsforthecarbonneutralityoftheprocessarethattheheatforthehigh-tempera-turereactorisproducedfromrenewableorcarbon-neutralenergysources,andthepermanentbindingofthecarbon.Downstreamproducts:Furtherproductscanbemadefromhydrogen(ammonia,methanol,methane,etc.).Aslongastheseproductsareproducedusing“green”hydrogen,theoverarchingterm“Power-to-X”(PtX)isused.Dependingonwhetherthedownstreamprod-uctsaregaseousorliquid,theterm“Power-to-Gas”(PtG)or“Power-to-Liquid”(PtL)isused.VI.Glossarybmwi.de
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