On 19 October 2026, Germany’s Federal Ministry for Economic Affairs and Energy (BMWE) adopted ten measures to get the country’s stalled hydrogen market moving. The ministry openly admits that the ramp-up is falling behind, mainly because production costs are still well above what many potential buyers are willing to pay. For Switzerland, which will receive much of its future hydrogen through neighbouring grids, Berlin’s course correction matters.

A frank diagnosis

The BMWE press release describes a hydrogen market facing major challenges and delays. The numbers back this up. According to ingenieur.de, Germany had only around 0.2 GW of electrolysis capacity at the end of 2025, against a target of 10 GW by 2030 in the National Hydrogen Strategy. The new paper no longer mentions that target; it now speaks of a substantial but realistic ramp-up instead.

Germany’s National Hydrogen Council also sees the ramp-up clearly behind the original expectations, IWR reports. Its long-term figures remain large nonetheless: depending on the scenario, 275 to 555 TWh of hydrogen and hydrogen derivatives per year in the late 2040s – explicitly as orientation values, not as a forecast.

Ten measures in four areas

The BMWE groups its ten measures into four areas. The key points, as presented by the ministry and reported by IWR and ingenieur.de:

  • Cheaper production: Berlin wants a pragmatic adjustment of the EU requirements for renewable hydrogen (RFNBO). The existing grid-fee exemption for electrolysers is to be extended to plants that took their final investment decision in time and start operating by 4 August 2029; other electrolysers are to pay a capacity-based special grid fee. Two offshore electrolysis projects of 250 MW each are planned on the SEN-1 site in the North Sea. Low-carbon hydrogen other than renewable hydrogen is to remain eligible in support programmes.
  • Needs-based infrastructure: More than 500 km of the hydrogen core network went into operation in 2025, and a further 2,200 km are being built. The federal and state governments are providing €4.2 billion in public funds. Storage needs will first be assessed in a study. Imports are to come mainly by pipeline from Europe and by ship from other partner countries, supported by H2Global and European auctions.
  • Demand: A new hydrogen window in Germany’s carbon contracts for difference receives at least €1.5 billion; the programme as a whole, with up to €8.7 billion, is open to hydrogen projects. Tenders are planned to convert 4 GW of gas power plant capacity to hydrogen – 2 GW in 2027 for operation from 2040, and 2 GW between 2030 and 2032 for operation from 2043. Offshore wind farms will have to use steel produced with renewable or low-carbon hydrogen, creating a first lead market for low-emission steel.
  • Governance: The National Hydrogen Council is being reformed, and a roadmap for hydrogen technologies is to be drawn up under Germany’s High-Tech Agenda.

Where the plan stays vague

Several gaps remain. IWR notes that the plan does not say which changes to the EU rules Berlin is seeking, nor how they would affect the greenhouse gas balance. The power plant conversion will only create demand from 2040 onwards. For hydrogen storage there is a study but no money yet – the German Hydrogen Association (DWV) warned that the core network alone is not enough if regional storage is missing. And the Federal Network Agency is consulting on possible delays in commissioning individual core network pipelines, as industrial customers may switch to hydrogen later than planned.

What it means for Switzerland

Switzerland’s access to imported hydrogen will depend heavily on the German and French grids. As we reported from the H2 Forum 2026, pipeline projects are heading for the Swiss border. Any delay in the German core network therefore also shifts the timeline for Swiss industrial sites. Swiss companies and policymakers should follow the Federal Network Agency’s consultation closely.

The second lesson concerns demand. Berlin has recognised that the real bottleneck is offtake, not technology, and is putting money and lead markets behind it. Switzerland has comparable instruments only in part. As we argued for eSAF, it currently has no equivalent to the German auctions. With Art. 11a of the CO₂ Act, however, it already has a simple demand-side lever for synthetic fuels – provided the ordinance is designed so that it actually takes effect.

SPIN’s view

Germany’s honesty about the state of its hydrogen market is welcome, and putting demand at the centre is the right call. Simpler EU rules can lower costs. They must not, however, weaken the link between electrolysis and additional renewable electricity – otherwise cheaper hydrogen comes at the price of more fossil power. Lower compliance costs and stable demand targets belong together: in the same week, 260 companies asked the EU to keep its RFNBO targets beyond 2030.

From a defossilisation perspective, hydrogen made from natural gas remains based on fossil feedstock, even with CO₂ capture. It can serve as a bridge, but the goal must be renewable hydrogen – and the Power-to-X products made from it with recycled CO₂ from biogenic, atmospheric or industrial sources, which displace fossil carbon instead of adding to it.

Join SPIN: Companies, research institutions and associations that want to advance Power-to-X in Switzerland are welcome to become members of SPIN. Questions? Write to info@power-to-x.swiss.

Sources: BMWE, “Neue Impulse für Wasserstoff: BMWE beschließt zehn Maßnahmen für Hochlauf des Wasserstoffmarktes” (19 October 2026); BMWE, “Wasserstoff für Resilienz und Zukunftsfähigkeit Deutschlands: Zehn Impulse für den Markthochlauf” (PDF); IWR, “Wasserstoffhochlauf bleibt hinter Erwartungen zurück” (21 October 2026); ingenieur.de, “Wasserstoff bleibt teuer: Was Reiches 10-Punkte-Plan ändern soll” (20 October 2026); stadt+werk, “Bund will Markthochlauf beschleunigen” (22 October 2026).

🤖 AI transparency: This text and its visual were created using AI, reviewed and approved by a human.