BMWK Publishes White Paper on Hydrogen Storage

In mid-April, the Federal Ministry for Economic Affairs and Climate Action (BMWK) published the White Paper on Hydrogen Storage. It builds on the Green Paper on Hydrogen Storage, providing concrete detail on the topics of storage demand and potential that emerged during the consultation process. The white paper addresses the industry’s calls for faster planning and permitting procedures as well as a long-term, predictable market design. It also highlights the need for public funding to mitigate investment risks associated with the uncertainty during the market ramp-up phase.

The white paper, together with the feedback from stakeholders, can serve as a foundation for the German government’s work on hydrogen storage in the 21st legislative period.

Key Findings:

Hydrogen Storage Demand in Germany and Europe

Various scenarios (BMWK long-term scenarios, EWI models, and the INES market survey) forecast a significant increase in hydrogen storage demand. By 2030, demand in Germany is expected to reach 2 to 7 TWh, rising to 76 to 80 TWh by 2045. The main drivers are the use of hydrogen in industry and power generation through reconversion. On a European level, storage demand could reach up to 161 TWh by 2050.

Storage Technologies and Potentials

Germany has excellent geological conditions to meet its own storage needs and support neighboring European countries. It is well-positioned to play a key role in Europe. Salt caverns offer the greatest potential, supplemented by above-ground storage technologies like compressed gas and liquid hydrogen storage for short-term and decentralized applications.

Repurposing Existing Natural Gas and Oil Storage Sites

The conversion of existing underground gas and oil storage facilities into hydrogen storage could cover 20 to 50% of Germany’s hydrogen storage demand by 2040. With an ambitious legal framework, the conversion of salt caverns could be completed within six years, with a construction period of around three years. In contrast, new build projects may take up to twelve years.

Legal and Regulatory Framework

The white paper also addresses the regulatory framework and potential acceleration measures, aiming to reduce implementation times and support the build-up of hydrogen storage capacity.

Competitive Hydrogen Storage Market as a Guiding Principle

A competitively structured storage market offers key economic and technological advantages. The technological diversity and decentralization of hydrogen storage create ideal conditions for such a market to emerge. Removing market entry barriers and establishing clear but limited regulatory guidelines can further improve the investment environment. A well-designed regulatory framework can foster competition without stifling its development.