Study warns Germany and EU could fall short of their own clean hydrogen targets

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Germany, EU risk missing their own clean hydrogen goals: Study

Clean hydrogen as an energy source is indispensable for achieving global climate targets, but Germany and the European Union are in danger of missing their own hydrogen targets, a study published on Monday showed.

"Germany is clearly lagging behind its plans," management consultants PwC Strategy& wrote in its report.

While an electrolysis capacity of 10 gigawatts (GW) is planned by 2030, not even 0.1 GW is in operation today and projects with 0.55 GW have been financed, the study showed.

Electrolysis is the process by which water is split into hydrogen and oxygen with the help of electricity. The process takes place in an electrolyzer and produces carbon-free hydrogen energy.

In order to reach the target, Germany would have to build 1 to 2 GW of electrolysis plants and 200 to 400 wind turbines every year. In the past two years, however, only 0.25 GW of additional capacity has been financed.

According to PwC, the EU wants to use at least 20 million tons of clean hydrogen by 2030 and produce half of it in Europe. However, "the EU is a long way from achieving this." It would have to build 120 GW of capacity to achieve this.

Only 0.2 GW of plants are currently in operation, while plants with a capacity of 3 GW are under construction or financed. In view of its own targets, the EU would have to build plants with a capacity of 20 GW every year.

There is a huge gap between announcements and realization worldwide,the study said. Projects with 840 GW have been announced, 15 GW are financed or under construction and plants with just 1 GW are in operation.

In terms of plans, Europe is in first place ahead of Africa and Latin America. China, South Korea and Japan are the frontrunners when it comes to realization.

The Asian trio already has "twice as much production capacity in operation, financed or under construction as Europe," PwC said.

The United States is primarily focussing on cheaper hydrogen, which is produced by capturing and storing CO2.

"The capital-intensive hydrogen market is still in its infancy and has recently had to contend with high interest rates and inflation in material prices," said co-author Dirk Niemeier.

Politicians have a duty here: "The biggest barrier is the lack of large-volume purchase agreements, which prevents the financing and thus completion of production projects. The prerequisite for such purchase agreements is a subsidy that compensates for the initial additional costs compared to fossil fuel alternatives, similar to renewable electricity."

In addition, renewable energy is necessary for clean hydrogen, but is in short supply.


  1. EmilySmith says

    Germany, EU risk missing their own clean hydrogen goals according to this study. It’s concerning that the electrolysis capacity targets are not being met, and the gap between plans and actual progress is significant. Without immediate action, achieving global climate targets could be jeopardized.

  2. EmilyWrites21 says

    Is there any information on what specific challenges Germany and the EU are facing in implementing their hydrogen targets?

    1. JohnSmith87 says

      Germany and the EU are encountering various obstacles in meeting their hydrogen targets, such as inadequate funding, slow implementation of projects, and regulatory complexities. The lack of operational electrolysis capacity and the slow pace of construction of necessary infrastructure are major challenges. Without significant investments and streamlined processes, achieving the set targets by 2030 seems daunting.

  3. EmilyWrites says

    It’s concerning to see that Germany and the EU are falling behind their clean hydrogen targets. The ambitious plans are yet to materialize, and there is a significant gap between targets and actual progress. Urgent action is needed to accelerate the deployment of electrolysis plants and ramp up wind turbine construction to meet the set goals. Let’s hope they can step up their efforts and lead the way towards a more sustainable future.

  4. Emily96 says

    It’s concerning to see that Germany and the EU are falling behind on their clean hydrogen targets. The importance of transitioning to clean energy sources cannot be overstated, and urgent action is needed to bridge this gap. Hopefully, policymakers will prioritize investment and innovation to ensure a sustainable future for all.

  5. EmilySmith21 says

    It’s concerning to see the lagging progress in clean hydrogen targets, both in Germany and the EU. The ambitious targets set need to be met with urgent and concrete actions to combat climate change effectively.

  6. EmmaSmith87 says

    I’m not surprised by this study’s findings. It’s clear that both Germany and the EU are struggling to meet their hydrogen targets. It’s concerning that the progress is so far behind the planned goals, especially when clean hydrogen is crucial for combating climate change. Immediate action is needed to bridge this gap and accelerate the development of electrolysis plants and wind turbines to reach the set targets.

  7. EmmaSmith2000 says

    I believe that the study’s findings are concerning. It is crucial for Germany and the EU to step up their efforts in clean hydrogen production to meet their targets and combat climate change effectively.

  8. EmilySmith says

    It’s concerning to see that both Germany and the EU are falling short of their clean hydrogen targets. It’s crucial for them to ramp up their efforts in building electrolysis plants and wind turbines to meet the set goals. The gap between plans and actions needs to be bridged swiftly to combat climate change effectively.

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