Germany's Hydrogen Strategy Faces No Water Demand Barriers, DIW Berlin Says
Germany's hydrogen strategy faces no water demand barriers, according to the German Institute for Economic Research (DIW Berlin). However, regional water stress and pricing transparency are key considerations for electrolysis expansion.
Water stress, which can vary by region and season, may pose challenges. Excessive water withdrawal can exacerbate these issues. DIW Berlin recommends more transparency in water prices for electrolysis and considering regional water stress in approval processes.
Desalinated seawater offers an alternative water source for coastal countries. Expansion of the hydrogen backbone network is vital for efficient electrolysis capacity distribution. Northern German states, rich in renewable energy, are ideal for electrolysis locations. These include Schleswig-Holstein, Lower Saxony, Mecklenburg-Vorpommern, and North Rhine-Westphalia, which boast strong wind power potential and industrial infrastructure.
A 10-GW electrolysis capacity requires only 0.15 percent of Germany's total water withdrawal, or approximately 26 million cubic meters annually. Promoting rapid hydrogen grid expansion can help settle electrolysis in less water-stressed regions.
Germany's hydrogen strategy is not hindered by water demand. However, regional water stress and pricing transparency must be addressed. Coastal states and those with high renewable energy potential are ideal for electrolysis. Rapid hydrogen grid expansion can help mitigate water stress concerns.
