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Archives of Business Review – Vol. 8, No.12

Publication Date: December 25, 2020

DOI: 10.14738/abr.812.9425.

Novak, D. (2020). Hydrogen (H2) Is On The Rise – Is Germany On The Right Track? Archives of Business Research, 8(12). 44-49.

Hydrogen (H2) Is On The Rise – Is Germany On The Right Track?

David Novak

ABSTRACT

Purpose: The anthropogenic greenhouse gas emissions cause the

global temperature rise. The solution must therefore be combinations

that together do not produce any greenhouse gases. Green produced

hydrogen (H2) is a profound example of this, but is still at the very

beginning of a comprehensive development and solution for numerous

applications. As a large technology nation, Germany has a special focus

and responsibility. Design / methodology / approach: Due to the fact

that practically all information on this is only press releases from the

media, only public media can be used, especially for the latest findings.

This also includes statements from the federal and state governments

and other public authorities done in personnel interviews to the author

by phone. Results: Since H2 is a completely new field in the course of

decarbonization and will result in investments of billions in every

country, the answer to the research question posed for Germany at

least can be: Yes, Germany is definitely on the right track with H2.

Research / practical implications: Future research should deal with the

implementation of the H2 application and the challenge of supply and

demand. Originality / Value: This paper is based on brand new

publications and 2 interviews with key decision makers about

investments in new hydrogen plants.

Keywords: Hydrogen (H2), challenges at H2, relevant projects

INTRODUCTION

The fact of anthropogenic climate change has not been denied for years, even if a few leading

politicians are still resisting it. The data from global weather and climate research institutes are

clear in this regard. Based on this, the Paris Climate Protection Agreement was passed in 2015,

from which the USA was the only relevant country to withdraw at the instigation of President

Trump. Regardless of this, the rest of the world obviously agrees that there is anthropogenic

climate change and that humanity must therefore change its behavior when it comes to emitting

greenhouse gases. In any case, this includes reducing this output and bringing it down to 0 (in

words: zero) by 2050 (in some countries by 2060). This means that you have to say goodbye to the

burning of fossil fuels such as coal, natural gas and all petroleum derivatives forever. This term is

called decarbonization in the new linguistic usage. Whether it should also be a question of

defossilization as a whole, which would then also include nuclear energy, will not be discussed

further here. So there are de facto only regenerative energy sources left, such as wind and sun, as

well as other options coupled with them such as geothermal energy / heat pumps.

The area of hydropower is left out here, as reservoirs of various types require numerous

preconditions that are often not given. The regeneratively generated energy must then be stored

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Archives of Business Research (ABR) Vol 8, Issue 12, December-2020

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and also transported, both of which are generally difficult with electricity. The solution here is

called green hydrogen (from regenerative power sources, hereinafter referred to as H2, as it is

practically the only one that occurs in production and use). Why? Because it is relatively easy to

manufacture, store, transport and use. It can be used in almost the same way as previous petroleum

derivatives, the only difference being that no exhaust gases are produced when used, only oxygen

and water. Let's put it clearly: H2 is obviously the solution to the energy problems of the 21st

century. From the perspective of the end of 2020, no other statement can be made. And since

mankind has to act now because of the ever faster rise in temperatures, it de facto has no choice.

So if it has no choice, H2 is the only meaningful source of energy and it is imperative that we act

now and not only in decades, then we have to answer the question of whether we are currently on

the right track with H2.

WHAT ARE THE CHALLENGES WITH H2?

As with any new technology, there are numerous hurdles and challenges in introducing it. So here

too. And that applies all the more if the solutions have to be brought about under great time

pressure, both for climate protection and competition reasons.

The production of H2

Hydrogen is considered to be an important carrier for the success of an energy transition. His

shortcoming: To date, too little of it has been produced in Germany, and imports are cheaper. A

study has now shown that the economical production of green hydrogen is also possible in

Germany. Gaseous energy sources are a fundamental part of the energy transition. Politicians made

this clear with the adoption of the national and European hydrogen strategy in summer 2020.

However, politicians are placing too much emphasis on imports from abroad, criticize the authors

of a joint study by the Wuppertal Institute and DIW Econ GmbH, on which this paper is largely

based. Their summary: Competitive hydrogen production is also possible in Germany - with clearly

positive effects on domestic added value and the German labor market.

The transport of H2

However, for economic reasons, hydrogen imports via ship transport do not make sense, as these

require energy-intensive liquefaction beforehand. According to the authors of the study, such as

Yann Girar from DIW Econ, the costs for transport by ship are around three times as high as for

transport by pipeline and therefore only pay off from a distance of at least 4,000 kilometers from

the production country. In Germany itself, longer transports are easily possible via existing gas

pipelines, but the individual filling stations then have to be approached by tank trucks.

Storage and filling with H2

H2-Mobility is continuing the technology development funded in the national innovation program

and successfully tested in the Clean Energy Partnership for refueling with hydrogen at 700 bar for

cars and 350 bar for trucks and buses (Cleanenergypartnership, homepage). These refueling

processes have been tried countless times and have been proven to work technically flawlessly.

This problem also seems to have been solved.

The necessary infrastructure and using end products

The company H2-Mobility, charged with setting up the infrastructure, the H2 vehicles for users and

other things, are funded in the German National Innovation Program for Hydrogen and Fuel Cell

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URL: http://dx.doi.org/10.14738/abr.812.9425 46

Novak, D. (2020). Hydrogen (H2) Is On The Rise – Is Germany On The Right Track? Archives of Business Research, 8(12). 44-49.

Technology (Nationales Innovations Programm). Specifically, within the scope of the project, the

standardization of the system design and the layout planning will be optimized under technical,

economic and legal aspects. The aim is to reduce space requirements, planning and construction

time, energy consumption and ultimately costs. The NOW National Organization Hydrogen and

Fuel Cell Technology advises H2-Mobility on political issues. The plan is to provide 100 H2 filling

stations in Germany in the first step and to grow to 400 in the second step, which would guarantee

sufficient area coverage, especially for national and international freight and bus traffic. What is

definitely not enough are currently only around 180 H2 filling stations in the entire EU.

When it comes to which applications are possible for H2, then it is in fact the entire area of mobility,

whereby especially with land and water vehicles, the bigger and heavier the more useful the use, if

only because of the incurred One-time costs when purchasing. For example, trucks, buses and

construction machines will initially prevail on the road and only with a delay will cars, although it

makes more sense for large and expensive cars than for small and cheap ones. Added to this is the

entire ship and rail traffic. The extent to which it can be used in air traffic, at least with a fuel cell,

cannot currently be estimated, nor is it on the priority list.

How the H2 is used, whether via a fuel cell or as fuel for an internal combustion engine, is also open.

If the technology openness, which is repeatedly demanded, is implemented, numerous applications

of H2 in combustion engines with zero pollutant emissions might well be possible. However, if the

internal combustion engine is generally banned by politics, numerous and absolutely sensible

applications for H2 will automatically be dropped (Ehret, 2020).

Potential costs and additional jobs

As a politician, it is imperative that you realize that the decarbonization project towards purely

renewable energies is the largest investment project since the reconstruction after the Second

World War. Yann Girard, co-author of the study and manager at DIW Econ states: “In the optimistic

scenario of a domestic hydrogen production share of 90%, direct value added effects of up to a

maximum of 30 billion euros in 2050 and more than 800,000 direct additional jobs are realistic

that are directly related to green hydrogen production. Large synergies arise above all where

excess quantities are converted into hydrogen with the increasing use of fluctuating energy

sources. In addition, electricity from onshore wind turbines enables competitive H2 generation ”

(Merten, Girar, 2020). If you consider that all vehicles and possibly also all heating systems will

have to be replaced, then in the coming decades an additional sales volume within the EU will arise

which, with all related expenses, will reach the trillion euros (author's own calculations) .

RELEVANT PROJECTS IN IMPLEMENTATION USING GERMANY AS AN EXAMPLE

The most important German projects from the author's point of view are briefly described below.

There are currently at least a dozen that are in preparation and subsequent implementation. A

complete listing is just as impossible as an evaluation of those that have already started. Instead of

perfection, speed appears to be the relevant factor in the decision and in the subsequent

implementation.

“West Coast 100”

In Schleswig-Holstein, the cross-sector partnership “West Coast 100” was formed from EDF

Germany, Holcim Germany, OGE, Ørsted, Raffinerie Heide, Stadtwerke Heide, thyssenkrupp