Too little momentum in legislation, too few visible success stories, and a growing number of insolvencies – after the hype came disillusionment. But for Andreas Kuhlmann, this is far from the end of the hydrogen story. On the contrary, the Chairman of the German Hydrogen Association (DWV) believes the industry has reached a new turning point.
In this interview, he explains which political decisions are now needed, when conditions for new investments are likely to improve, and why a stronger alignment of industry stakeholders will be crucial for the successful scale-up of the hydrogen economy.
The hydrogen ramp-up has so far fallen short of expectations. How do you assess current developments, and what prospects do you see for the coming years?
I believe we are once again at a turning point. A few years ago, the hydrogen sector experienced an enormous hype – and for good reason. It is now widely accepted that we will not achieve our climate targets without hydrogen. Anyone in politics who claims that hydrogen is not essential is effectively saying that we will not meet our climate goals.
Another important factor has since come into play: we are increasingly recognizing the need to strengthen Germany as an industrial location, establish future-oriented technologies, and build a more resilient energy system. As a result, the arguments in favor of a consistent hydrogen scale-up have become even stronger. At the same time, the earlier hype was accompanied by very high expectations, which inevitably led to a period of disappointment. In my view, we are now gradually moving beyond that phase. Greater stability is beginning to emerge, laying the groundwork for the next stage of development. I am convinced that the coming years will bring significantly more positive momentum for the hydrogen sector.
What measures could make the hydrogen economy more attractive to investors?
Overall, the situation is less negative than it is often portrayed. In fact, meaningful progress is already being made. The greenhouse gas reduction quota and the implementation of the Renewable Energy Directive III (RED III) in the transport sector have created tangible incentives, particularly for the expansion of electrolysis capacity. This is an important step forward and is expected to have a noticeable impact.
At the same time, many cities seeking climate-friendly solutions for buses and heavy-duty vehicles are increasingly realizing that full electrification is not always straightforward due to grid constraints. In such cases, hydrogen is becoming a more attractive option once again. As the first electrolysis projects are developed in these regions, opportunities arise to integrate local industry and connect to the emerging hydrogen core network through dedicated infrastructure links.
However, banks and financial institutions first need to gain confidence in these new technologies and business models. As long as the necessary market structures are still evolving, investment decisions will inevitably remain challenging.
This is why improved regulatory frameworks, particularly at the European level, are so important. Some stakeholders believe that the German government could exert greater pressure in Brussels to accelerate the development of clear, reliable, and practical regulations that would provide the certainty investors are looking for.
Why is there not more pressure being placed on European policymakers?
For years, the hydrogen industry has pointed out that the current European criteria for hydrogen production are overly complex and often difficult to implement in practice.
The DWV actively advocates for improved framework conditions at both the national and European levels. Regulatory adjustments can play a decisive role in reducing hydrogen costs and encouraging investment. To this end, the association contributes its technical expertise to political decision-making processes and provides valuable input on the design of legislation and regulatory frameworks.
In our dialogue with policymakers, we deliberately represent the entire hydrogen value chain. While many stakeholders focus on specific interests – whether from the perspective of the energy sector, network operators, or individual industrial segments – the DWV brings together these different viewpoints and develops a comprehensive vision for building a hydrogen economy.
This cross-sector perspective is precisely what makes the association a valued partner in political discussions. Our approach has already delivered results. Among other achievements, we have supported the implementation of the European RED III requirements in the transport sector and contributed to the introduction of dedicated hydrogen sub-quotas.
A successful hydrogen ramp-up depends on several framework conditions working together. One of the most important requirements is the establishment of practical and workable European production criteria for green hydrogen. The current rules are widely regarded as overly complex, making economically viable production more difficult. What we need are adjustments at the EU level that enable green hydrogen to be produced and deployed more quickly and at lower cost.
Investment certainty is equally important. Companies need confidence that hydrogen certified as green today will retain that status in the future. Reliable regulations, including so-called grandfathering provisions, can provide the long-term planning security required for major investments.
At the same time, policymakers should ensure that support for existing industries does not come at the expense of new climate-friendly technologies. Strengthening Europe’s industrial base for the long term means not only safeguarding established structures, but also investing consistently in companies that are already pioneering green technologies and hydrogen solutions today.
It is also essential to take a realistic view of the energy transition. Battery storage will play an important role, but it will not be sufficient on its own. Achieving climate neutrality will require hydrogen across a wide range of sectors – from industry and transport to the energy system itself. Anyone who fails to recognize this is primarily focused on short-term economic interests rather than effective climate action.
What would you like to improve in your new role as Chairman of the DWV?
In my new role as Chairman, I want to help foster a more positive outlook across the industry and strengthen collaboration among its various stakeholders. There are many shared technical challenges, particularly between municipal utilities and hydrogen project developers. This raises the question of why there is still no central platform that enables a structured exchange on these issues. Together with the association, I would like to explore and further develop such an approach.
I also believe it is time to redefine the hydrogen ramp-up in light of the experiences of recent years. The first phase was characterized by tremendous momentum and high expectations. Now is the right moment to take stock of where we stand, assess the current situation realistically, and use that foundation to enter a second phase of market development.
For this next stage, I would like to bring as many companies as possible together under the umbrella of the DWV and actively involve them in shaping the industry's future. One of the sector’s biggest challenges today is fragmentation. There are many stakeholders speaking about hydrogen and pursuing their own interests, but the industry’s collective voice is still not strong enough.
This is where the DWV can play a pivotal role: as a platform that brings together diverse perspectives, develops common positions, and provides the hydrogen sector with a stronger and more unified voice. By connecting stakeholders across the entire value chain, we can help create the cohesion needed to successfully advance the hydrogen economy.