The German recovery plan intends to expand the role of hydrogen to decrease national dependence to coal. EUR 7 billion in government investments have accordingly been earmarked in for developing green hydrogen, with the following related measures :
- Germany plans to build a production capacity of 5 GW by 2030. Additional capacities of 5 GW will be built by 2035-2040.
- Hydrogen production will be done through tenders for electrolysis services, subsidies for building new plants, and new pilot programmes.
- Green hydrogen production will be exempt from the EEG levy.
- Hydrogen will be promoted in the industrial sector in order to reduce the use of fossil fuels in industrial processes (ex: to produce climate-friendly steel).
- Germany will also promote the direct use of green hydrogen in aircraft engines, and encourages the development of concepts for hybrid electric flying (combination of hydrogen / fuel cells / battery technology).
The Hydrogen Strategy also includes EUR 2 billion to establish international trade partnerships with countries with more favourable production conditions for green hydrogen, and build large production facilities using German technologies. 31 potential exporting countries (mainly located in West and South Africa), whose fossil-fuel dependency the partnership also means to reduce, are identified.