The “In a Nutshell” series published by the Academies’ Project “Energy Systems of the Future” (ESYS) looks at topical issues that are sometimes discussed without a sound scientific basis, setting out the facts in a clear and intelligible manner. Previous editions have addressed questions such as “What are Negative Emissions and Why do We Need Them?” and “What is the Significance of Nuclear Energy to the Future of Global Power Generation?”. In this new publication, ESYS discusses the role of hydrogen in the energy transition.

Hydrogen could potentially make an important contribution to net zero lifestyles and economic activity. But there is still some way to go before this potential can be fully leveraged. In “How Important Will Hydrogen be in the Energy System of the Future?”, ESYS summarises the key aspects and places them in the overall system context.

Status quo and outlook

Although hydrogen is already used in industry, demand is set to grow strongly over the next few decades. The publication outlines the different ways of producing hydrogen, compares their costs, water usage and CO2 emissions and provides an overview of possible areas of application that mainly use fossil fuels at present: For instance, hydrogen can be used in steelmaking, as an aviation and shipping fuel, or as a feedstock in the chemical industry. The publication explains that while it is technically possible to use hydrogen for private transport and to heat buildings, technologies that use electrical energy are often more energy-efficient than hydrogen and its derivatives in these areas.

The emerging global hydrogen economy

It is still too early to say what proportion of Germany’s hydrogen demand will be met through domestic or European production and how much will be imported from further afield. The balance will be influenced by policy and commercial decisions within the emerging hydrogen economy. However, Germany will probably only be able to meet part of its demand through domestic production.

This presents a number of opportunities and challenges: It will be necessary to form fair partnerships where producers and customers cooperate on an equal footing while ensuring social and environmental standards. A transport network must also be built to bring hydrogen from the exporting countries to Germany and the rest of Europe. The “In a Nutshell” publication provides an overview of the opportunities and challenges in this emerging market, drawing on the findings of the study “Options for importing green hydrogen into Germany by 2030”, which was published by ESYS in August 2022.