(Berlin, Germany) – In a public hearing of the Bundestag's Committee on Economic Affairs regarding the acceleration and framework for the hydrogen rollout, a majority of experts called for faster passage and implementation of the legislation, as well as an expansion of its scope to include all measures necessary for establishing the core hydrogen network. As previously reported , the German Federal Cabinet recently adopted the draft Hydrogen Acceleration Act (HydrogenBG; Bundestag printed matter 21/2506 ) . The experts generally agree that the hydrogen rollout is a key element for the success of the energy transition. They consider the energy carrier indispensable for the decarbonization of the economy and industry. However, they disagree on several points, including whether the law should refer solely to green hydrogen or only to "low-carbon" hydrogen in general.
BDEW: Include low-carbon hydrogen
The German Association of Energy and Water Industries (BDEW) is advocating for a more ambitious approach than that proposed in the government's draft legislation, in order to guarantee tangible accelerations and procedural simplifications in practice. The government's draft legislation omits several good provisions from the initial draft. In addition to accelerating the process, it is also necessary to establish the currently lacking competitiveness of renewable and low-carbon hydrogen through further political signals. "This includes a significant reduction in hydrogen production costs, an enabling legal, regulatory, and financing framework for infrastructure outside the core hydrogen network, and the creation of a pull effect on the demand side through a funding framework and hedging instruments. It is crucial that legislators seize the momentum to create a broad application framework in the current initial phase of the hydrogen ramp-up, which will form the basis for the accelerated development of the value creation infrastructure," said Kirsten Westphal, a member of the BDEW's executive board. Furthermore, the "scope of application" needs to be expanded. This applies particularly to the consideration of low-carbon hydrogen, such as production from fossil fuels with subsequent carbon capture and storage (CCS) or carbon capture and utilization (CCU), as well as electrolysis using electricity from nuclear power. "Low-carbon hydrogen is indispensable for ramping up the hydrogen economy and transforming Europe as an industrial location."
DIHK: Expand the scope of application
According to the German Chamber of Industry and Commerce (DIHK), the government's draft legislation contains important provisions to facilitate the development of a hydrogen infrastructure. The scope now extends to the import of methane, the production of power-to-liquid fuels, and hydrogen pipelines and facilities required for the operation of plants or pipelines. This will allow a larger portion of the hydrogen infrastructure to benefit from the simplified procedures. Projects should be granted overriding public interest status without exception until 2045 – regardless of the share of renewable energy used. "The scope should be significantly expanded to include all approval procedures for projects that produce, store, transport, or use hydrogen or its derivatives," says Hauke Dierks, Head of Environmental and Raw Materials Policy at the DIHK. "That is, all projects associated with ramping up the hydrogen infrastructure." Furthermore, the legislation should incorporate accelerated procedures for special regulations such as shortened deadlines, centralization, and the digitalization of procedural steps for all hydrogen project approval processes.
FNB: Continue to secure natural gas supply
The Association of Long-Distance Gas Pipeline Operators (FNB) criticizes the fact that the measures currently outlined in the Hydrogen Act (HydrogenBG) only apply to new pipelines, but not to the conversion of existing pipelines from natural gas to hydrogen, nor to measures that reinforce natural gas networks. Managing Director Barbara Fischer complained that the draft legislation "does not consider, or insufficiently considers, regulatory content that is particularly important for the development of the core hydrogen network." She stated that the legislature must "rigorously extend the scope of application to include all measures necessary for the development of the core hydrogen network." Despite the conversion of pipelines from natural gas to hydrogen, the supply in the remaining natural gas network must be guaranteed in the future. Therefore, connections to a gas pipeline being converted, which continues to supply customers, "must first be connected to the gas network via another pipeline in order to free up the conversion pipeline for hydrogen transport. These measures must be carried out before the conversion."
OGE: Politics must send positive signals
The scope of the law should be expanded to accelerate the development of all hydrogen infrastructure during the ramp-up phase, demands the transmission system operator Open Grid Europe GmbH (OGE). This absolutely requires the explicit inclusion of facilities related to low-carbon hydrogen. "Only if all hydrogen infrastructure falls within the scope of the Hydrogen Act can it be ensured that all ramp-up options can equally realize their potential," says Andre Brauner, Head of Real Estate and Planning Law at OGE. "Beyond acceleration, further political signals are needed to create a competitive hydrogen market." Brauner called for "instruments and regulations that enable lower production costs and a strong demand boost." He also emphasized the need for "promoting industrial applications and an ambitious power plant strategy." Outside the core hydrogen network, there is a lack of incentives for providing storage capacity, a framework for hydrogen distribution networks, and the development of import corridors and terminals. And the underlying financing mechanism for the further development of the hydrogen core network also requires improvement.
IGE: Improve framework conditions
The Fraunhofer Institute for Energy Infrastructures and Geotechnologies IEG stated that the law is an important but insufficient step towards accelerating the hydrogen rollout. Mario Ragwitz, institute director and coordinator for the development, transport, and storage of hydrogen (Transhyde), pointed out that the implementation of many hydrogen projects is currently stalled due to a lack of economic viability. While the current draft legislation does address obstacles to the hydrogen rollout, particularly in production and infrastructure, "it is at least as important to create additional supportive framework conditions to stimulate demand." The use of hydrogen in steel production, the chemical industry, and high-temperature applications requires a CO2 price significantly higher than €200 per ton and is therefore not economically viable in the medium term without targeted instruments. "Therefore, the key prerequisite for ramping up hydrogen use is the stringent and focused promotion of individual, strategically relevant demand segments." Furthermore, there is a great “need for action in the areas of standardization and standardisation of hydrogen technologies, which is relevant for a rapid market ramp-up of hydrogen along the entire value chain”.
BVkom: Government has no overall concept
The German Association of Local Authorities (BVkom) criticizes the fact that some procedural deadlines are too short and cannot be realistically met in practice given existing staff shortages. "It must not happen that the formal review of projects and their environmental impacts is undermined due to excessively short procedural deadlines." Shortening deadlines and legal fictions are not necessarily a suitable means of accelerating processes, but could also promote errors and rework. "Significant discrepancies also persist between political ambitions and actual implementation in digitalization." At the municipal level, filling vacant positions remains a persistent problem. The federal government must offer a standardized, end-to-end digitalized process. BVkom spokesperson Klaus Ritgen criticized the lack of a comprehensive federal strategy for the energy transition. This draft law, too, ultimately represents only a piecemeal addition to a multitude of fragmented legislation. What is needed instead is to integrate the various aspects of an energy transition driven by renewable energies, maintain local value creation, foster acceptance, and consider the crucial functions of municipalities. Fundamental challenges to the hydrogen rollout remain. In particular, sufficient financial resources and financing mechanisms are needed to successfully implement the national hydrogen strategy.
DNR: Securing the transition to green hydrogen
The draft law primarily aims to accelerate infrastructure development. The German Nature Conservation Ring (DNR) argues that the "overriding public interest" argument is intended to reduce democratic participation rights and weaken environmental standards. "As environmental organizations, we strongly criticize this approach, as lengthy planning processes are largely due to understaffed permitting authorities." Instead of shortened review procedures, investment in personnel is needed. Furthermore, the state should "create reliability for producers and consumers." Alexander Kräß, DNR's climate and energy policy expert, criticizes the fact that an overriding public interest cannot be justified, especially if the law promotes both green and fossil hydrogen. "Concrete measures are needed to guarantee a complete transition to green hydrogen in the medium and long term."
GWS: No decarbonization without green H2
“Without green hydrogen, there will be no energy transition and no decarbonization of the economy,” said Anke Mönnig, Deputy Head of the Economics and Social Affairs Department at the Society for Economic Structural Research (GWS). Investments in green hydrogen technologies could create a competitive advantage over other countries. “Further measures need to be taken to enable a successful hydrogen ramp-up, such as the creation of lead markets for green hydrogen.”
The full text of the associations' statements can be found on the website of the German Bundestag.
Photos
Reichstag building in Berlin: In a public hearing of the Bundestag's Committee on Economic Affairs, representatives of various associations commented on the government's draft Hydrogen Acceleration Act. © German Bundestag / Edgar Zippel
