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Your company is already operating in Germany and you would now like to export worldwide?
Germany is Europe’s leading chemical industry market and one of a few countries worldwide where the entire value chain – from basic chemicals to specialty chemicals – is present. It is also Europe’s leading steel production market and services Europe's most dense automotive OEM landscape. Both industries are seeking decarbonization for the production of green steel as well as for technology (including CCUS) and infrastructure providers (storage, pipeline and import hubs).
The German government assumes that between 90 TWh and 110 TWh of green hydrogen will be needed. Higher demand, subject to how quickly the use of hydrogen in industry, energy and mobility sectors is adopted, is to be expected after 2030. Demand for green hydrogen could increase massively, with forecasts ranging from 400 TWh to 800 TWh through to 2050.
In the chemicals sector alone, investments of up to EUR 45 billion are expected between 2020 and 2050. Most of this will be made by 2040, while investments of EUR 30 billion are expected in the steel industry by 2050.
There is a significant market in Germany for hydrogen and its derivates. The leading client sector is the chemical industry, which uses most of the 55 TWh of hydrogen consumed annually. In the chemical industry, ammonia is most required (production of 2.6 million tons annually) and methanol (production of approximately 1.05 million tons annually). In the future, the domestic steel industry will also become an important consumer of this decarbonized raw material in order to produce 42 million tons of crude steel annually.
Hydrogen technology – and its subsequent use for industrial production – provides many areas of potential and points of contact for international investors as the entire value chain is located in Germany. This covers everything from hydrogen technology to the production of a wide variety of end products in the steel, chemical and petrochemical industries.
The National Hydrogen Strategy provides an action framework for the future production, transportation and use of hydrogen and related technologies and investments. The new government has doubled the original NHS hydrogen electrolyser target to 10 GW by 2030. Increased capacity will be achieved through massive expansion in renewable energy - particularly offshore wind energy - and the creation of international energy partnerships.
The National Hydrogen Strategy envisages a consistent switch to hydrogen for the chemical and steel industries as well as the mobility market. This includes the import of hydrogen from abroad - including the H2 global initiative amongst others - and the installation of up to 10 GW of electrolyzer capacity by 2030. Further National Hydrogen Strategy measures include the 62 IPCEIs (European strategic projects involving German and European companies) currently taking place in Germany. These projects are the starting points for the country's hydrogen economy.
Federal states in northern Germany have strategic plans to move their industries to hydrogen and see potential for the establishment of new industries or new parts of the industrial value chain.
The production of onshore wind and offshore wind energy is already playing a major role and will continue to receive massive government funding. Equally crucial are good connections to neighboring countries for the import of electricity and of hydrogen via pipeline and through landing "hubs" via sea routes.
Other factors including large storage capacity and the planning of a hydrogen pipeline network ensure predictable investments. A range of other mechanisms such as “carbon contracts for difference" will provide further incentives to switch to hydrogen and promote new investment.
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