Hydrogen
Hydrogen produced in a zero- or low-carbon way (clean hydrogen) is widely considered a key part of the portfolio of energy technologies necessary for the transition towards climate-neutrality, in particular in otherwise hard-to-decarbonize sectors, such as chemicals manufacturing, steel production, heavy-duty transportation, and production of liquid transport fuels. Additionally, it can also serve as an enabling technology for long-duration energy storage and flexibility in the power sector.
Given its potential to help address the climate crisis, enhance energy security and resilience, and create economic value, the United States and Germany have implemented national hydrogen strategies, adopted hydrogen support programs, and decided to work together under the USA-Germany Climate and Energy Partnership (CEP) (and other formats) to accelerate the market ramp-up of clean hydrogen, its derivatives and application technologies, and to create the regulatory framework conditions necessary for this development. To support the cooperation, a bilateral working group on hydrogen was established in 2022, co-chaired by experts from of the U.S. Department of Energy (DOE) and Germany’s Federal Ministry for Economic Affairs and Climate Action (BMWK). The working group meets on a regular basis (either physically or virtually) to discuss relevant hydrogen developments and implement bilateral cooperation activities in support of the above objectives, such as workshops, expert delegation trips and public events on hydrogen-related topics.
Projected clean hydrogen and derivatives demand in the U.S. and Germany in 2030
Sources: Germany's National Hydrogen Strategy 2023; U.S. National Clean Hydrogen Strategy and Roadmap 2023
*For Germany, a total hydrogen and derivatives demand of 95-130 TWh by 2030 is projected, which equals circa 2.8-3.9 Million tons (Mt) (calculation based on lower heating value for hydrogen).
Relevant Sources
Upcoming Activities
- Hydrogen Trade Roundtable at CERAWeek 2024 (tbc)
- Webinar on U.S. and EU hydrogen regulations/ standards and its potential effects on trade (tbd)
- Expert delegtion trip to Germany on hydrogen (Summer 2024) tbd
Past Activities
Hydrogen support schemes in Germany/ EU (selection):
- H2Global funding windows
- Important Project of Common European Interest (IPCEI) in the field of hydrogen
- Carbon Contracts for Difference program
- Decarbonisation of Industry funding program
- European Hydrogen Bank (“Auctions-as-a-Service” scheme)
Hydrogen support schemes in the U.S. (selection):
- Clean Hydrogen Production Tax Credits (45V) as part of Inflation Reduction Act (IRA)
- Regional Clean Hydrogen Hubs Program (H2Hubs) as part of Bipartisan Infrastructure Law (BIL)
- DOE's Hydrogen Demand-Side Support Initiative (Office of Clean Energy Demonstrations)