IMPORT STRATEGYFOR HYDROGEN
AND HYDROGENDERIVATIVESADOPTEDOn 24 July 2024, the Federal Cabinet adopted the Import Strategy for hydrogen and hydrogen derivatives.
The Import Strategy makes an important contribution
to increasing investment security for hydrogen projects and thus to procuring a reliable supply of hydrogen for use as a raw material and energy source.

Strategy adoption sends important signal forpartner countries and international hydrogenmarket development
The key messages of the Strategy are as follows:
The German government intends to build and expand
hydrogen partnerships to meet its import needs forhydrogen and its derivatives.
The German government will also include low-carbonhydrogen and its derivatives to meet demand. However, the long-term goal is a supply of green hydrogenand derivatives produced using renewable resources.
The German government supports a diversified product range for the import of hydrogen. In addition tomolecular (i.e. gaseous or liquid) hydrogen, various hydrogen derivatives (e.g. ammonia, methanol, naphtha,electricity-based fuels) and carriers such as liquid-organic hydrogen carrier (LOHC) can be considered.
The German government is pursuing the parallel development of import infrastructures for pipeline andStatus: 07/2024

ship-based transportation. While a large part of the import demand is expected to be met by pipeline, shipbased imports will also be useful in the long term, especially to meet the demand for hydrogen derivatives.
The German government is working with a large number of partner countries and regions, both within Europe and internationally, to expand its climate and energy partnerships. The aim is to diversify sources of supply as widely as possible.

Germany to become one of the largest hydrogen importers in the world
The German government forecasts that national demand for hydrogen and its derivatives will be 95 to130 TWh in 2030, of which around 50 to 70% will haveto be imported from abroad. In an interim report on thesystem development strategy, the Federal Ministry for
Economic Affairs and Climate Action (BMWK) further
estimates that the import share will continue to rise after 2030 and that demand will increase to 360 to 500
TWh of hydrogen and to around 200 TWh of synthetichydrocarbons and other hydrogen derivatives by 2045.
In the long term, Germany will therefore become thelargest demand market and importer of hydrogenand its derivatives in Europe, and possibly also worldwide.

Five offtake sectors drive the demand for hydrogen and its derivates in Germany:
The steel industry needs molecular hydrogen in orderto replace coking coal-based blast furnaces with hydrogen-based direct reduction plants.
The basic and petrochemical industries need molecular hydrogen, naphtha, methanol and ammonia. to replace fossil hydrogen as a raw material for various
chemical processes.

ted to ambitious, practicable and, where possible, harmonised sustainability standards to ensure that theramp-up of the international hydrogen market does nothave a negative impact on the global energy transitionor the sustainable development of partner countries.
Promotion of supply: In addition to H2Global as a central funding instrument, the German government supports international hydrogen production through thefurther development of the European Hydrogen Bank,

Shipping has a need for green ammonia, methanol andliquid hydrogen to replace fossil crude oil with electricity-based fuels. Depending on the electricity-based fuel,other propulsions may also be necessary.

the establishment of the PtX Development Fund andAviation has a need for E-kerosene, as fossil kerosene
must be replaced by sustainable aviation fuels.

International cooperation: The international market

Electricity has a need for molecular hydrogen, as H2ready gas-fired power plants and H2-only power plants
must first be established in the electricity system before
they can assume a balancing function on a seasonal basis.

routes are supported by various international and intra-

Import Strategy supported via a mix ofmeasures along the entire supply chain

Targeted research and development measures also

Strengthening demand: Strengthening a reliable de-Implications of the Strategy

mand for hydrogen in Germany improves supply-side
conditions and facilitates production and investment
decisions. The instruments that will enable this include
Carbon Contracts for Difference (CCfDs), the Federal
Fund for Industry and Climate Action (BIK), the IPCEI Hydrogen, the Power Plant Safety Act and the quotas defined in RED III.

through the provision of foreign trade promotion instruments (e.g. export credit guarantees, investment
guarantees or untied financial loans).
ramp-up and the establishment of hydrogen import
European cooperation efforts (e.g. climate and energy
partnerships, sustainable energy transition partnerships, H2-agreements, import corridor dialogues) andover 40 partnerships.
contribute to the international market ramp-up.

The Import Strategy provides a framework for hydrogencooperation and private-sector hydrogen imports toGermany. It is an integral part of the updated National
Hydrogen Strategy and is therefore also subject to theregular monitoring undertaken for the National Hydrogen Strategy.

Transport infrastructure: The import of hydrogen andits derivatives is made possible by the construction ofpipelines (for imports from Europe and neighbouringcountries) and terminals (for imports from more distantregions by ship). The hydrogen core network, which will
gradually come into operation by 2032, will be closely
linked to a trans-European hydrogen network and toports. This core network will make it possible totransport the imported hydrogen throughout Germany.
Certification and standards: EU certification and product requirements apply to imports to Germany. In addition, the German government is internationally commit-

For further information, please contact:
Deutsche Energie-Agentur GmbH (dena)Raffael BarthChausseestraße 128a
10115 Berlin
Phone: +493066777273
Email:
raffael.barth@dena.de
Internet: www.dena.de