Germany’s Bid To Double Hydrogen Fuel Targets Ignores Operator Demand And Cost Signals - CleanTechnica

The article critiques Germany’s Bundesrat proposal to double mandated hydrogen fuel targets, arguing that it prioritizes salvaging existing investments over market efficiency and economic viability. The Bundesrat’s approach effectively positions the state as a guarantor of hydrogen demand, ignoring weak market signals and operator reluctance. Independent fiscal institutions in Germany and France have warned that hydrogen strategies for transport are significantly more expensive than alternatives, with costs per ton of CO2 avoided ranging from €400 to €520—far exceeding those of direct electrification methods. These audits highlight that hydrogen subsidies have disproportionately favored road transport, despite battery electric trucks demonstrating lower total ownership costs. Furthermore, Germany’s national hydrogen strategy has underperformed, with supply and demand lagging behind expectations despite substantial federal funding. Key hydrogen demand anchors, such as steel projects and power generation roles, have faced delays or reductions, undermining the economic rationale for extensive hydrogen infrastructure. This creates fiscal risks, as state-backed loans of up to €24 billion depend on future network utilization,