ENERGY FOR THE FUTURE

Producing hydrogen in a climate-neutral way requires electricity from renewable sources like solar, wind, or hydro. In Germany, 56% of electricity consumption in 2024 already came from renewables—with wind energy accounting for the largest share at 48%. This green electricity is essential for making electrolysis efficient and emission-free. However, expanding renewable energy requires significant investment in grid infrastructure and storage to manage fluctuations in supply. Hydrogen will play a key role in storing renewable energy for the long term.

Electrolyzers use green electricity to split water into its components—hydrogen (H₂) and oxygen. Modern systems reach efficiencies of 60 to 85 percent. There are three main technologies in use: Alkaline Electrolysis (AEL) for stable long-term operation, Proton Exchange Membrane (PEM) for flexibility and quick load changes, and Solid Oxide Electrolysis (SOEC), which operates at high temperatures for maximum efficiency. Scaling up these technologies is vital to bring production costs down from around €5 per kilogram today to under €2 by 2030.

Hydrogen can be stored for extended periods—in pressurized tanks, as a liquid, or in underground salt caverns. For mobile uses, composite pressure tanks are the standard. In the future, metal hydride storage may become a viable alternative, though it still requires further research.

Hydrogen can be transported to where it's needed through gas pipelines. According to the German Technical and Scientific Association for Gas and Water, 95% of Germany’s existing 550,000-kilometer gas network is already suitable for hydrogen, with only valves and compressors needing modification. By 2032, Germany plans to build a 9,000-kilometer core hydrogen network connecting production hubs—like North Sea wind farms—with major industrial centers.

Countries with abundant renewable energy resources can produce green hydrogen for export. Australia aims to ship 35.9 million tons of hydrogen (mainly as ammonia) annually by 2050, while Africa could emerge as the largest exporter with 40.7 million tons. Transporting hydrogen as liquid ammonia is more efficient than moving it in its pure form. Germany is already importing hydrogen from Norway and Morocco, with the goal of covering 50–70% of its needs through imports by 2030.

Green hydrogen is transforming heavy industries. It replaces coal in steel production—slashing CO₂ emissions by up to 95%. Sweden’s HYBRIT project has been proving this since 2021. In the chemical sector, hydrogen is a key ingredient in producing ammonia (used in fertilizers) and methanol. Power plants are also reducing emissions by blending hydrogen with natural gas—currently up to 30%.

Hydrogen-powered vehicles—cars, trucks, and trains—run without local CO₂ emissions, offering a strong complement to battery-electric transport. By the end of 2024, there were already 1,160 hydrogen fueling stations worldwide. A 40-ton truck consumes around 8 kg of hydrogen per 100 km, which—if using green hydrogen—saves about 80 kg of CO₂ compared to diesel. In shipping, companies like Maersk are experimenting with ammonia-fueled engines, which could help decarbonize nearly half the global fleet by 2040.

Green hydrogen can significantly lower CO₂ emissions—by up to 95% in steel production, for example. Converting German steel mills to a hydrogen-based direct reduction system could cut national emissions by 50 million tons of CO₂ annually by 2045. In transportation, each fuel-cell truck can prevent up to 120 tons of CO₂ per year compared to a diesel vehicle.