Germany’s Economy Minister Robert Habeck has inaugurated a hydrogen electrolysis pilot project by RWE in Emsland. Another large-scale facility is planned for 2025, with significant funding already allocated.
A symbolic launch for Germany’s hydrogen future
Economy Minister Robert Habeck (Green Party) marked his first official event after the summer break by inaugurating a pilot hydrogen electrolysis plant in Lingen, Emsland, on August 12. The event took place under the shadow of two decommissioned nuclear power plants, adding a symbolic touch to the launch. The facility, developed by RWE in collaboration with Dresden-based electrolysis manufacturer Sunfire and gas company Linde, aims to produce around 270 kilograms of green hydrogen per hour, with a total capacity of 14 megawatts. Although the European Union anticipates a demand of 20 million tons of hydrogen by 2030, this project serves as a smaller test lab to explore the best technology for future industrial-scale production.
Looking ahead to larger-scale production
While the Lingen project is a crucial step, it is not intended to meet the EU’s long-term hydrogen goals alone. A much larger facility is planned to follow in 2025, potentially becoming one of Europe’s largest electrolysis plants with an initial capacity of 100 megawatts, expanding to 300 megawatts by 2027. This ambitious project will be supported by approximately €490 million in funding from both the federal government and the state of Lower Saxony. Habeck emphasized that these efforts are critical to advancing Germany’s transition to a climate-neutral and sustainable economy.
Challenges and future prospects for hydrogen infrastructure
Despite Habeck’s optimism, the hydrogen economy still faces significant challenges, particularly regarding infrastructure. Producing green hydrogen from renewable energy sources like wind and solar is just one part of the equation. Efficient nationwide distribution requires a robust transport network and sufficient storage capacity, as both energy forms are naturally volatile. Germany and the EU will also rely on imported hydrogen, necessitating a stable supply network.
A key initiative in this direction is the GET H2 Nukleus project, which includes a 130-kilometer pipeline from Lingen to Gelsenkirchen as part of a planned 9,700-kilometer hydrogen core network. This initiative, led by RWE, BP, Evonik, and pipeline operators Nowega and OGE, is partially funded by a €700 million federal hydrogen project fund. However, overall investment in hydrogen projects remains cautious, with companies in Germany currently implementing projects with a combined capacity of just 0.3 gigawatts, far short of the ten-gigawatt target set by the federal government.
Economic concerns also loom large. Jens Burchardt, a hydrogen expert from the Boston Consulting Group, warned of significant miscalculations in the production costs of green hydrogen. Instead of the anticipated €3 per kilogram, the cost is likely to be closer to €8, far exceeding the cost of natural gas. Without targeted subsidies, there is a risk that key industries may relocate, potentially leaving Germany behind in the global hydrogen race. Southern Europe and Scandinavia could emerge as the new leaders in hydrogen production, rather than regions like Emsland.
