Overbuilding Germany’s hydrogen infrastructure risks €45bn funding gap: IEEFA

Germany risks exposing taxpayers to tens of billions of euros in hydrogen infrastructure costs if demand fails to materialise at projected levels, according to a new report from the Institute for Energy Economics and Financial Analysis (IEEFA).

The think tank argues Berlin’s hydrogen strategy still assumes an economy-wide role for hydrogen across industry, transport, heating, and power generation, despite electrification likely outcompeting hydrogen in several sectors.

It comes as Germany presses ahead with the build-out of its 9,000km and the government prepares tenders for a fleet of hydrogen-ready power plants.

In its report, IEEFA estimates that weaker-than-expected hydrogen uptake could leave Germany requiring around €45bn ($52.8bn) in additional public funding by 2055 – equivalent to around €1,000 ($1,175) per taxpayer.