Summary
Germany's green hydrogen industry is facing challenges due to a lack of demand despite its potential benefits. Green hydrogen is more expensive compared to hydrogen made from fossil fuels, slowing its adoption. Companies like Quest One are ready to produce more but need more customers to make operations viable.
Key Facts
- Quest One manufactures electrolysers to produce green hydrogen in its factory near Hamburg, Germany.
- The company had to lay off 20% of its workforce because demand for electrolysers is lower than expected.
- Green hydrogen is produced using electrolysis powered by renewable energy but is costly compared to fossil fuel-based hydrogen.
- Green hydrogen accounts for less than 1% of global hydrogen production.
- Quest One aims to reduce green hydrogen costs to €4 per kilogram, about half the current price in Germany.
- There is concern that some sectors, like building heating and car power, are less efficient uses of green hydrogen.
- Volkswagen, which owns part of Quest One, is reviewing its options regarding its involvement in green hydrogen.
- Government policy and investment in infrastructure, like hydrogen pipelines and storage, are crucial for competitive pricing.
