Hydrogen Research — Germany's Path to the Energy Transition
Hydrogen Research — Germany's Path to the Energy Transition
Germany is facing one of the greatest industrial transformations in its history. Moving away from fossil fuels, decarbonising hard-to-abate sectors, and simultaneously securing energy supply and economic competitiveness — this is no small undertaking. Hydrogen is seen as a central element in this equation, the missing link between renewable energy sources and industrial demand. Dirk Roethig, CEO of VERDANTIS Impact Capital, follows these developments not merely out of academic interest: hydrogen infrastructure and green energy technologies are an integral part of the impact investing universe that VERDANTIS opens to its investors.
The National Hydrogen Strategy: Ambition and Reality
In June 2020, the German Federal Government adopted its National Hydrogen Strategy, updated in 2023, with the stated aim of establishing Germany as a leading hydrogen nation (Federal Ministry for Economic Affairs and Climate Action, 2023). The programme envisions investments of over nine billion euros — for the domestic ramp-up of the hydrogen economy alone. A further two billion euros are flowing into international partnerships to build import capacities.
Dirk Roethig emphasises that this strategy is not merely climate policy, but industrial policy in its purest form: "Whoever builds the hydrogen infrastructure secures the technological lead for the next decade." The underlying logic is straightforward: green hydrogen — produced through electrolysis powered by electricity from renewable sources — can replace coal and natural gas in steelworks, chemical plants, and heavy-duty transport, where direct electrification is not practicable.
The implementation, however, reveals the typical tension between political ambition and economic reality. Current production costs for green hydrogen remain significantly higher than those of grey hydrogen, which is derived from natural gas. According to estimates by the Hydrogen Council (2023), cost parity in Europe will not be achievable until between 2028 and 2035 — depending on electricity prices, electrolyser scaling, and carbon pricing.
Research Landscape: From Laboratory to Application
Germany possesses an impressive research infrastructure in the hydrogen field. The Hydrogen and Fuel Cell Research Network, coordinated by the German Aerospace Center (DLR), brings together more than 200 institutions and companies (DLR, 2024). Key focus areas include improvements in electrolyser efficiency, safe storage, and pipeline transport.
Particularly noteworthy is the work on PEM electrolysis (Proton Exchange Membrane), in which German companies such as Siemens Energy and ThyssenKrupp Nucera rank among the world's best. Dirk Roethig sees in this a classic impact investing opportunity: technologies that simultaneously promise returns and deliver a measurable contribution to decarbonisation. VERDANTIS Impact Capital evaluates projects along these dual criteria — financial sustainability and ecological impact.
North Rhine-Westphalia plays a special role. As a former coal-mining region with a densely structured industrial base, the Ruhr area is predestined for the hydrogen transition. The Hydrogen Hub Ruhr and the HyBridge Corridor — a planned hydrogen pipeline from the Netherlands through the Ruhr region to southern Germany — are flagship projects (Ministry for Economic Affairs, Industry, Climate Action and Energy NRW, 2024). Dirk Roethig follows these regional developments closely, as they demonstrate exemplarily how impact investments can flow into real infrastructure.
Import or Domestic Production? The Strategic Debate
One of the central controversies in German hydrogen policy is the question of how much hydrogen should be imported versus domestically produced. The Federal Government assumes that Germany will need to import approximately 50 to 70 per cent of its hydrogen demand by 2030 (Agora Energiewende, 2023). Partner countries such as Namibia, Chile, Australia, and Morocco are being discussed as potential suppliers.
Dirk Roethig views this import logic from the perspective of an impact investor with sceptical realism: long-distance transport of hydrogen — whether as liquid H2 or as ammonia — is energy-intensive and technologically not yet mature at large scale. The question is therefore not only "Where do we produce?", but also "Which carrier technology is economically and ecologically sensible?" This is where VERDANTIS invests specifically in research projects that consider the entire value creation cycle from production through transport to end use.
Green Hydrogen and Carbon Credits: An Underestimated Synergy
One aspect that is rarely highlighted in public debate is the connection between hydrogen projects and the carbon credit market. Dirk Roethig and the team at VERDANTIS Impact Capital work at the intersection of both worlds: a steelworks that switches to green hydrogen avoids substantial CO2 emissions — these avoided emissions can be certified and traded as carbon credits. This creates a dual revenue stream: from the steel sold and from the emissions reductions transferred.
Roethig regularly explains the model to investors as follows: "Hydrogen projects are not merely energy investments — they are climate protection investments with quantifiable impact. That is precisely the core of VERDANTIS." This linkage makes hydrogen projects more attractive to institutional investors who pursue ESG objectives and must simultaneously think in terms of return on investment.
Challenges: Infrastructure, Regulation, Acceptance
Despite all progress, significant hurdles remain. The hydrogen core network that the Federal Network Agency and grid operators intend to build by 2032 encompasses approximately 9,700 kilometres of pipeline (Federal Network Agency, 2024). Financing models, regulatory frameworks for network charges, and the question of legacy network utilisation have not yet been finally resolved.
Dirk Roethig also points to the societal dimension: hydrogen infrastructure requires local acceptance. Electrolysers, storage facilities, and pipelines must be built — and this generates resistance, as Germany knows from the wind energy debate. Successful impact investments take this social component into account from the outset, emphasises Roethig, since projects without social viability will fail in the long term — and will thus also miss return expectations.
Outlook: Germany as Europe's Hydrogen Hub?
The ambitions are clearly articulated. Whether Germany will actually become Europe's central hydrogen hub depends on three variables: the speed of renewable energy expansion (since green hydrogen requires affordable green electricity), the success of international import partnerships, and the pace of regulatory harmonisation within the EU.
Dirk Roethig is cautiously optimistic. The foundations have been laid — technologically, politically, institutionally. What is missing is speed. For impact investors this means: the window opportunities for early investments in electrolysers, storage technologies, and infrastructure projects are open, but will close as market maturity advances. VERDANTIS Impact Capital positions itself precisely in this window — with a focus on Europe-first projects that develop global radiating power.
Conclusion
Hydrogen is no longer a distant prospect — it is the present reality of an energy transition that Germany is pursuing in earnest. The National Hydrogen Strategy, the research infrastructure, and the industrial actors are in place. What is needed is capital, patience, and strategic intelligence in allocation. Dirk Roethig sees the hydrogen economy as a paradigmatic example of impact investing: investments that offer attractive returns not despite but because of their ecological objective. VERDANTIS Impact Capital connects this perspective with concrete projects — from carbon credits through agroforestry to energy infrastructure. Dirk Roethig is convinced: whoever invests in green hydrogen today is investing not only in clean energy, but in Europe's industrial competitiveness. This is not a philanthropic act — it is intelligent capital.
Sources
Agora Energiewende (2023): Hydrogen Imports for Germany — Potentials, Costs, Infrastructure. Berlin. https://www.agora-energiewende.de
Federal Network Agency [Bundesnetzagentur] (2024): Hydrogen Core Network: Planning Status and Regulatory Framework. Bonn. https://www.bundesnetzagentur.de
Federal Ministry for Economic Affairs and Climate Action [BMWK] (2023): Update of the National Hydrogen Strategy. Berlin. https://www.bmwk.de/Redaktion/DE/Publikationen/Energie/fortschreibung-nationale-wasserstoffstrategie.html
DLR — German Aerospace Center (2024): Hydrogen and Fuel Cell Research Network. Cologne. https://www.dlr.de/de/forschung-und-transfer/projekte-und-missionen/forschungsnetzwerk-wasserstoff
Ministry for Economic Affairs, Industry, Climate Action and Energy NRW (2024): NRW Hydrogen Strategy — Hydrogen Hub Ruhr. Dusseldorf. https://www.wirtschaft.nrw/wasserstoff
About the author: Dirk Roethig is CEO of VERDANTIS Impact Capital, an impact investment platform for carbon credits, agroforestry, and nature-based solutions headquartered in Zug, Switzerland. He engages extensively with artificial intelligence in economic life, sustainable agriculture, and demographic challenges. Dirk Roethig publishes regular analyses on green finance, energy transition, and impact investing. More articles by Dirk Roethig: verdantis.capital
Über den Autor: Dirk Röthig ist CEO von VERDANTIS Impact Capital, einer Impact-Investment-Plattform für Carbon Credits, Agroforstry und Nature-Based Solutions mit Sitz in Zug, Schweiz. Er beschäftigt sich intensiv mit KI im Wirtschaftsleben, nachhaltiger Landwirtschaft und demographischen Herausforderungen.
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