In 2024–2025, Germany’s energy mix is transitioning toward renewables, which constitute over 50% of electricity generation, yet fossils (oil and gas) still dominate over 75% of primary energy consumption. Following the April 2023 nuclear phase-out, wind remains the leading power source, followed by solar, coal, and natural gas, with a 2045 carbon neutrality target.

Germany is positioning itself as a global leader in the green hydrogen economy, recently shifting its policy to focus on rapid infrastructure development and international imports to meet a projected demand of 95–130 TWh by 2030. Germany aims to reach 10 GW of domestic electrolyzer capacity by 2030, a target doubled from its original 2020 strategy. The Hydrogen Acceleration Act, approved in October 2025, designates hydrogen projects as being of “overriding public interest,” intended to slash permitting times and fast-track infrastructure.

Germany has embraced the H2Global Initiative, a flagship auction mechanism that provides subsidies to bridge the price gap between expensive green hydrogen imports and what domestic industries can pay.

Because domestic production will only cover a fraction of its needs, Germany has established a robust outward-oriented strategy. It has active agreements with several countries, including Australia, Chile, Morocco, and Finland.

Key projects include RWE, currently commissioning of Europe’s largest green hydrogen plants in Germany; EWE, constructing a 320 electrolyzer in Emden and converting gas storage facilities for hydrogen; GASCADE Leading work on the HYLU pipeline to connect northern production to the grid.

German firms face stiff competition from China, which currently controls nearly 60% of global electrolyzer manufacturing capacity.