German industry's preparations for a hydrogen economy are gaining momentum, according to a study by the strategy consultancy PwC Strategy&. "However, the south of the republic is threatened with a supply gap," warned the energy experts in Munich.

By 2030, 80 percent of hydrogen demand is expected to come from the steel industry, the semiconductor industry, oil refineries and the chemical, ceramics and glass industries. "The largest customer is expected to be the Rhine-Ruhr region with its steel and chemical industries," the study says. According to the consultants, the major hydrogen hubs will also include Saarland, the Bavarian Upper Palatinate, the Frankfurt-Stuttgart-Würzburg triangle, the Bremen-Hamburg axis and the Berlin-Leipzig-Magdeburg region.

Hydrogen is a niche topic in mechanical engineering and the food industry, but steel mills "have long been experimenting with pilot plants to produce fossil-free steel based on green hydrogen. Semiconductor factories are planning their own electrolysis capacities."

Double supply gap in the south

While large parts of the country are to be supplied with a 5100-kilometre-long pipeline network, a double supply gap is emerging in the south: "According to the current status, for example, neither a sufficient connection to the European hydrogen network is guaranteed for the Freiburg-Munich axis by 2030, nor will the region have sufficient PV or wind power plants to produce green hydrogen locally. There is also a lack of sufficient connection to power lines to supply oneself with green electricity from the north," the strategy consultants wrote.

Hydrogen projects with a capacity of five gigawatts are in operation, under construction or in planning in Germany. Significant hydrogen imports to Germany are not expected until 2035, said co-author Dirk Niemeier.