Through targeted investments and a tailored legal framework, the federal government must act quickly and decisively to establish a stable and reliable hydrogen infrastructure. IG Metall made this call during its hydrogen conference in Berlin.
The conference marked the launch of the “H2 treibt an” hydrogen initiative, through which IG Metall aims to advance the issue at both the political and workplace levels in the interest of creating good, sustainable jobs.
Conference participants—including works council members from major steel producers, energy plant manufacturers, the rail industry, the mobility sector, and engine manufacturers— emphasized the urgent need for action on hydrogen and adopted a position paper addressed to the federal government.
Increase electrolysis capacity to 10 GW by 2030
We call for an expansion of electrolysis capacity to 10 GW by 2030. The 5 GW specified so far in the hydrogen strategy is by no means sufficient.
Take the steel industry as an example: 1.4 million metric tons of green hydrogen will be needed if steel production is fully converted to direct reduction. That corresponds to 9 GW of installed capacity for steel alone.
Set targets for the expansion of green hydrogen and expand domestic hydrogen production
We call for a quota for green hydrogen in an amount sufficient to supply the basic materials industry on a significant scale.
Currently, only 5 percent of hydrogen in Germany is produced from renewable sources, which amounts to 3 TWh = 0.1 GW. With a target of 10 GW of generation capacity in the power grid—i.e., 10–26 TWh by 2030—the share of hydrogen produced in Germany must increase by at least two and a half times (x 2.5) up to six times (x 6). The remainder must be covered by exports (current estimate: up to 80 percent). Despite the color classification of hydrogen (green, blue, turquoise), we aim to use quotas to eventually use only green hydrogen.
Promote leading markets for the hydrogen ramp-up
We call for the use of various instruments to promote market ramp-up.
These include, for example, a demand quota for climate-friendly raw materials through public procurement, a consumer levy on end products, subsidy programs or investment grants for the construction of electrolyzer facilities, the development of refueling infrastructure for commercial vehicles, rail, and air transport, and blending quotas for Power-to-X in fuels…
Expansion of Renewable Energy
We call on the federal government to realistically assess future electricity demand.
Electricity demand will rise. Currently, gross electricity consumption (including fossil fuels) in Germany hovers just below 600 TWh. The federal government’s current plan calls for a significantly lower, unrealistic electricity demand of 580 TWh, with a 65 percent renewable energy expansion target by 2030. Even with this target, at least 700 TWh will be needed. In the long term, this means that by 2050, with 100 percent renewable energy, the additional electricity demand in industry will rise from 249 to approximately 410 TWh, and in transportation from approximately 12 to 220 TWh.
Infrastructure Expansion of Power Lines and Grids
We call for the rapid expansion of hydrogen infrastructure.
Industrial sites must be connected to the long-distance pipeline network. Over 90 percent (equivalent to 1,100 km) of the existing long-distance pipeline network, which is currently used for natural gas, could already be repurposed for hydrogen. The focus here is on North Rhine-Westphalia and northern Germany. New networks and pipelines (100 km) must be laid in areas where electrolysis is possible and industrial customers rely on them. In addition, there must be decentralized hydrogen hubs from which refueling stations are supplied.
Education and training are central to a successful transition
We call for the issue of education and training to be addressed.
The expected employment figures directly related to hydrogen production are still unclear. This presents an opportunity to leverage existing expertise in energy plant construction and develop a future-proof industry that supplies electrolysers to the global market and can secure and expand employment in Germany as well.
New qualifications are needed, particularly in the steel, mechanical and plant engineering, commercial vehicle, and aircraft industries. Any necessary changes to the Vocational Training Act or training regulations must be implemented quickly. For existing employees, opportunities for further training or retraining must be provided.
Employee Participation in Innovation Processes
We call for employees to be involved in upcoming transformation processes.
Based on their day-to-day work experience, employees already have a very good understanding of which areas will require changes when switching to different products and production processes.
To what extent does the shift in production processes affect a company’s value chain? Is there a risk of job relocations? What does powering turbines, railcars, and commercial vehicles with hydrogen mean for employees? Which job roles are changing? These are the questions employees are asking. It is the responsibility of employers, policymakers, and employees to address these questions together and find solutions.
