Help for accessing the German hydrogen market
Dr. Oliver Weinmann is one of the key figures in the German hydrogen economy. He is the chairman of DWV, the German Hydrogen and Fuel Cell Association.
DWV promotes the spread of hydrogen use. As an industry association, its main task is to lobby for better regulation to make hydrogen more accessible. DWV also conducts various studies on what is happening in the hydrogen sector. Working groups give members the opportunity to discuss different hydrogen-related topics with each other.
Around 170 industrial companies from German-speaking countries make up a strong majority of the membership. There are also some other players and even some personal members in DWV.
Germany is looking for hydrogen
In German hydrogen circles, Finland is of particular interest as a potential exporter of hydrogen to Germany. Word has spread that there is plenty of space for wind turbines on the northern fringes of Europe and, with a small population, the northern countries have little demand for their own consumption.
It is easier to bring clean hydrogen from European countries to Germany by pipeline than by ship from other continents. The synthetic fuels market may be more competitive.
- “Hydrogen products, such as ammonia for industry, are mainly imported from outside Europe because they are much easier to transport in tankers than pure hydrogen.”
But Weinmann knows that hydrogen is also needed in the North. He is very familiar with the large green hydrogen projects in northern Sweden, having previously worked for Vattenfall.
Biogenic carbon is needed to produce synthetic fuels and methanol
There are still many variables in the profitability calculations.
- “Cheap biogenic carbon in the North can change the profitability calculations, so it could be worthwhile to bring synthetic fuels or methanol to Germany,” Weinmann says.
- “And as long as hydrogen gas pipelines do not yet run from Finland to Germany, the most convenient way to transport energy from Finland is also in the form of synthetic fuels—especially since there is already a blending obligation for them in some EU countries, although we are still waiting for EU regulation.”
But Weinmann also points out that the market for synthetic fuels is small compared to the overall market. Aviation fuels, for example, account for only 3 per cent of total CO2 emissions.
Germany needs energy in the form of gases
Germany and the northern Baltic Sea states have one important difference in terms of the development of the hydrogen economy. The German economy relies heavily on natural gas, while in Sweden and Finland, the role of natural gas has been almost negligible in comparison. The strong role of gas has made it easy for Germany to envisage the widespread use of hydrogen, while the Nordic countries have primarily thought only of electrifying everything possible.
- “Germany has built 64 gigawatts of wind power and 66 gigawatts of solar power. This already covers about half of our electricity consumption. And only a quarter of all the energy consumed in Germany is electricity, the rest gas, oil and coal.”
Currently, the peak wind power capacity in Finland is just under 6 gigawatts.
- “No matter what we do, we cannot survive in Germany on our renewable energy alone. The energy consumption is too high. We have to import a lot of energy, and the easiest way to do that is through pipelines. Sure, we could import a lot of hydrogen or ammonia from far away, but it often makes more economic sense to get it from neighbouring Europe.”
Germany pushes for technology neutrality
Insufficient increase of domestic renewable electricity production also explains why Germany recently pushed the EU to allow the use of synthetic fuels in cars well into the second half of the 2030s—to the surprise of many Nordics.
Weinmann points out that the wider electrification of society is not as easy everywhere as it is in northern Europe.
- “While the electricity grid works well and reliably in Finland and Sweden, this is not the case in many southern European countries, for example. In these countries, there may be a greater need to use internal combustion engines for longer periods than in the North.”
- “I’m in favour of being neutral on technology and not regulating everything.”
Hydrogen for heating
At the beginning of April, the German government decided to support the switch to hydrogen for heating as well, alongside renewable energy.
- “The same applies to heating as to transport. There are countries where the electricity transmission system will not be able to cope with the rapid introduction of a heat pump in every house for a long time. If, in the long term, there is enough cheap hydrogen on the market also for heating, why shouldn’t it be an option? So let the market decide.”
- “But if that happens, it will take a long time in any case, because industry and transport will first need huge amounts of hydrogen.”
Help available to access the German market
While German organisations are looking for access to the Finnish, Swedish and Estonian markets for German companies, they are also working in the other direction.
For example, the German Chambers of Commerce Abroad (AHK) offer individual market access services, such as market analyses, also to companies in Finland, Sweden and Estonia. Finnish companies can receive Business Finland funding for the services of the AHK.
- “DWV is also willing to help.” Weinmann says.
Weinmann points out that there are also many investors and business centres in Germany looking for hydrogen start-ups.
Come to the AHK seminar in Helsinki on 9 May to hear what Finland and Germany can offer each other to develop the hydrogen market.
