Germany’s efforts to build a hydrogen economy are falling far short of government targets, the Federal Court of Auditors (Bundesrechnungshof) has warned. In a special report assessing progress under the National Hydrogen Strategy, the agency said both supply and demand for hydrogen remain far below expectations despite extensive public funding.
“The ramp-up of the hydrogen economy is not going according to plan,” the auditors said, urging what they called a “reality check” of the government’s approach. Kay Scheller, president of the Bundesrechnungshof, added that the federal government must act now and “fundamentally revise” its hydrogen strategy.
The report found the country is unlikely to meet its 2030 goals for producing green hydrogen from renewable power or achieving import targets for the gas. Despite billions in subsidies, the auditors said it is unclear when hydrogen can become competitive on price without permanent state support, warning that ongoing subsidies threaten to add further strain to public finances already under pressure.
They recommended a comprehensive reassessment of Germany’s hydrogen plans – similar to the Ministry for Economic Affairs’ earlier “energy transition reality check” – to determine whether green hydrogen can be developed sustainably and affordably at the necessary scale.
Auditors also pointed to weak demand signals, citing stalled green steel projects and the absence of clear hydrogen conversion requirements for planned gas-fired power plants. They said the planned core hydrogen network may be “oversized,” raising fiscal risks.
Hydrogen is central to Germany’s long-term climate targets, particularly in heavy industry and transport, but the sector has been slowed by rising costs, cancelled projects, and logistical barriers. Scheller warned that without decisive action, Germany risks missing its climate neutrality goal for 2045 and undermining industrial competitiveness.
