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Germany’s Audit Office Says Hydrogen Strategy Is Off Track and Needs an Overhaul

The report warns of heavy fiscal exposure from the hydrogen core network, urging a reality check with a fallback plan.

Overview

  • Auditors conclude Germany is unlikely to meet 2030 domestic hydrogen production goals and that imports will not cover the shortfall.
  • State support has not delivered the expected industrial uptake, with demand lagging especially in the steel sector.
  • Energy Minister Katherina Reiche’s move to drop hydrogen‑readiness for new gas plants removes a key demand signal, the report says.
  • The planned privately operated hydrogen “Kernnetz,” funded through capped user fees and a state‑backed amortisation account, could leave the federal budget exposed if demand stays weak.
  • With €4.3 billion allocated in 2024 and more than €3 billion in 2025, the watchdog urges tighter monitoring and a Plan B, noting doubts about climate benefits from imports due to upstream emissions and relaxed tender requirements.