Germany’s Green Hydrogen Ambitions Stalled by Regulatory Challenges and High Costs, Says E.ON

The push for a green hydrogen market in Germany is largely reliant on public funding, according to energy utility E.ON, which highlighted that only 9% of the country’s 2030 target for electrolysis capacity is currently under construction or has received investment decisions. Despite this, government-backed schemes have been the primary factor accelerating progress. E.ON’s research with the EWI energy institute reveals that high electricity costs and unclear regulations are hindering private investment, making hydrogen production seem unaffordable. Germany aims to develop its own green hydrogen capacity to decarbonize industries, but without better regulatory clarity and cost control, it risks losing its competitive edge to nations like the U.S. and China. The country has set ambitious hydrogen demand goals, with up to 70% expected to be imported by 2030.