Tue, 02 Dec 2025

Tue, 02 Dec 2025 Why time is running out for Germany's green hydrogen industry

Firms are ready to make the equipment needed for green hydrogen, but demand has not picked up yet.

* Companies like Quest One are laying off staff due to low demand and high production costs.
* The price of green hydrogen remains around $9-10 per kilogram in Germany, making it uncompetitive with fossil fuel-based alternatives.
* Industry experts point out that government support is crucial for scaling up the sector, as prices will only come down with economies of scale.
* Critics argue that the focus on green hydrogen may divert attention from more efficient solutions like electrification and heat pumps.
* The German government has reduced its ambitions for green hydrogen production due to high costs, but companies are calling for more support to remain competitive with China.
* Industry leaders admit that demand is not meeting expectations, with 52 low-carbon and renewable hydrogen projects cancelled or delayed in the last 18 months.
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