Published by Global Banking and Finance Review
Posted on October 28, 2025
2 min readLast updated: January 21, 2026
Germany's hydrogen strategy is falling short of 2030 targets, requiring an overhaul to boost green hydrogen production and manage costs.
BERLIN (Reuters) -Germany's federal audit office said on Tuesday that the nation's hydrogen strategy is falling short of its objectives, calling for a course correction to avoid missing 2030 targets for domestic green hydrogen production.
"It's time for a reality check," audit office president Kay Scheller said in the report, highlighting that both supply and demand for hydrogen, particularly in the steel sector, remain far below expectations despite billions of euros in subsidies.
Without adjustments, Germany will miss its 2030 targets for domestic green hydrogen production, and imports would be insufficient to bridge the gap, the audit office said.
It also raised concerns over the high cost of green hydrogen, noting that permanent subsidies could place unsustainable pressure on the federal budget. Import-related expenses alone could amount to between 3 billion and 25 billion euros by 2030, it said.
Hydrogen, produced through electrolysis of water using renewable electricity, is seen as a key driver in transitioning to a lower-carbon economy.
(Reporting by Holger Hansen, Writing by Friederike Heine, editing by Kirsti Knolle)
Green hydrogen is hydrogen produced using renewable energy sources, such as wind or solar power, through the electrolysis of water, making it a clean energy carrier.
Electrolysis is a chemical process that uses electricity to split water into hydrogen and oxygen, which is essential for producing green hydrogen.
Renewable energy is energy generated from natural sources that are replenished naturally, such as sunlight, wind, rain, and geothermal heat.
The financial implications include the costs of production, potential subsidies, and the impact on the federal budget, especially if production targets are not met.
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