As outlined in the National Hydrogen Strategy, Germany aims to build a robust hydrogen economy to support its climate goals and strengthen energy security. Hydrogen is considered a versatile energy carrier and an energy storage medium. By producing hydrogen through electrolysis powered by renewable energy sources, Germany aims to significantly reduce greenhouse gas emissions.

Most hydrogen is currently produced through steam methane reforming (SMR) using natural gas without capturing climate gases. Hydrogen is primarily used in the chemical industry, particularly in refineries and for ammonia and methanol production. To date, hydrogen plays only a minor role in the overall energy system. However, this is expected to change as Germany ramps up efforts to produce low-emission hydrogen from renewable sources (see also BGR Energy Study).