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A big boost for the hydrogen industry

In adopting the Hydrogen Acceleration Act, the federal cabinet has created key legislation underpinning the hydrogen rollout. A quick, successful rollout is essential for a climate-friendly industrial sector.

The industrial sector is a major pillar of the German economy, but is also responsible for large amounts of greenhouse gas emissions. Its decarbonisation is necessary if we are to achieve climate neutrality by 2045, and it must take place in a way that does not endanger the sector’s competitiveness. Climate-friendly alternatives to fossil fuels such as gas and coal are of the essence here. Hydrogen presents a low-carbon solution – especially for applications where energy efficiency and the direct use of renewables cannot bring down emissions as needed.

^{Comprehensive measures to speed up hydrogen projects}

The Hydrogen Acceleration Act is part of a package of measures designed by the Federal Government to accelerate and digitise planning, approval and procurement procedures for the hydrogen industry. The objective is to allow electrolysers and hydrogen import terminals to become operational more quickly. In legal terms, the hydrogen infrastructure is now being designated as being “in the overriding public interest”, which means that it can benefit from swifter approvals similarly to renewables. In the case of electrolysers, however, this only applies without further restrictions as long as there is no impending water shortage and where there is no negative impact on supplies of drinking water or important aspects of climate action.

^{A closer look at the Hydrogen Acceleration Act}

The Hydrogen Acceleration Act entails changes to environmental, procurement, energy industry and spatial planning law. It introduces maximum deadlines for licensing along with digital approvals and simplified procurement procedures. Approval procedures for electrolysers will be streamlined and even scrapped for small installations up to five megawatts. The Environmental Impact Assessment Act will be adjusted to reduce the level of scrutiny, with further streamlining resulting from a revision of construction law. The draft legislation will soon be presented to the Bundestag and Bundesrat.