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

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.