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10/15/24 Study Overall system Infrastructure Hydrogen Generating and distributing energy

Construction and financing of hydrogen storage facilities in Germany An analysis of strategy, measures and the role of the state

The study analyses questions relating to the financing and regulation of hydrogen storage systems.

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New dena study confirms considerable future demand for hydrogen storage and identifies framework conditions for the construction of hydrogen storage facilities. Development will only succeed on the basis of a state-supported financing concept. Revenue-based contracts for difference may be particularly suitable as a funding mechanism.

Hydrogen storage is a central element of a future hydrogen economy and the future energy system. Its importance lies in particular in ensuring security of supply in the electricity sector. Large storage capacities are needed in order to bridge the seasonal gap in demand from hydrogen power plants. However, uncertainties about the future development of the hydrogen economy have so far severely restricted the planning and construction of storage facilities. 

The expansion of hydrogen storage facilities announced to date only covers the expected demand until around 2030, and even here the final investment decisions have yet to be made. For this reason, the Federal Ministry for Economic Affairs and Climate Action (Bundesministerium für Wirtschaft und Klimaschutz, or BMWK) commissioned a study on the demand, conversion, new construction and financing of hydrogen storage systems, which was carried out by a consortium spearheaded by dena and with the participation of the Fraunhofer Institute for Systems and Innovation Research (ISI) and the consulting firm Guidehouse.