The German hydrogen industry must navigate funding, infrastructure and offtake challenges to achieve the scale-up of hydrogen production and distribution.
Speaking at the Hydrogen Technology Expo in Hamburg, Germany, Alexander Bedrunka, Project Manager for the Hydrogen Network of Lower Saxony, underscored the importance of securing an offtake agreement, to provide “planning security to the hydrogen producer.”
He added, however, “With long-term agreements, there is the problem of how the price develops, presenting a great disadvantage for the first mover.”
Alexander Kotschi, Country Market Director Energy at Ramboll Germany, reiterated this point. “The first mover is a typical risk that policymakers must identify,” he said, which could be achieved through gradual subsidies and clear regulations to incentivise early adoption.
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