VDE Whitepaper on the hydrogen economy: Set the course now for successful business models

(Frankfurt am Main, 02.11.2022) Germany has the potential to become a technology leader in the hydrogen economy. This is the conclusion of the experts who, at the invitation of VDE Renewables, discussed the commercialisation of the many new hydrogen technologies at the VDE FINANCIAL DIALOGUE. What needs to be done to advance the development of production and service areas has now been published in the VDE Whitepaper on the hydrogen economy.

In the transition to renewable energies, hydrogen is seen as an important bridging technology. While oil, gas and coal can be easily stored and used as needed, with electricity from the sun and wind, generation only sometimes matches demand. For large amounts of energy, the necessary storage is only feasible with hydrogen. Hydrogen Council has calculated in collaboration with McKinsey & Company that 240 billion dollars will be invested in the hydrogen sector by 2030. According to the study, there are 680 large-scale projects worldwide, but only ten percent of them are already being implemented. 

VDE Renewables Managing Director Burkhard Holder points out that the newly emerging markets around hydrogen are still marked by great uncertainties today: "It is quite crucial to adapt the current regulatory framework, which has evolved from the established energy technologies, to the new systems and products and to reduce the obstacles for their market introduction."

The Whitepaper therefore points out that the obstacles in the traditionally highly regulated energy markets should be reduced. They exacerbate uncertainty in industry and the financial world, because an economic assessment of investment projects is only possible to a limited extent. State subsidy programmes must be expanded and adapted where necessary, because they are an important and essential support for the market ramp-up and the start-up phase. The mobilisation of private capital is also critical for success – especially for innovative small and medium-sized enterprises. Investment companies, industrial enterprises and established funding providers can create efficient platforms for this. 

Consistent regulations and approval processes

The rapid introduction of the necessary regulations and consistent approval processes throughout Europe are another important requirement for the bankability and insurability of the new products and business models. In addition, the German hydrogen economy urgently needs concerted initiatives to train the next generation, both in vocational training and at universities. Overall, we need a technology-open industrial policy that supports and does not prevent emerging changes with interesting commercialisation potentials. 

About VDE Renewables 

VDE Renewables, a subsidiary of the VDE Group, offers quality assurance services for the global renewable energy sector. Based in Alzenau, Germany, the company’s services include quality testing and certification according to the highest safety, reliability, and performance standards, as well as independent engineering and technical due diligence.

VDE Renewables works closely with all structures of the VDE Group and its internationally renowned network, which include the leading research and development bodies such as the Fraunhofer Institutes and insurance firms such as Allianz and Munich Re. Together with its partners, VDE Renewables supports its customers with their specific requirements, such as gaining access to new markets, differentiating themselves from their competitors or enabling them to receive more attractive insurance or financing conditions. 

For more information, visit www.vde.com/renewables

About VDE

VDE, one of the largest technology organizations in Europe, has been regarded as a synonym for innovation and technological progress for more than 130 years. VDE is the only organization in the world that combines science, standardization, testing, certification, and application consulting under one umbrella. The VDE mark has been synonymous with the highest safety standards and consumer protection for more than 100 years. 

Our passion is the advancement of technology, the next generation of engineers and technologists, and lifelong learning and career development “on the job”. Within the VDE network more than 2,000 employees at over 60 locations worldwide, more than 100,000 honorary experts, and around 1,500 companies are dedicated to ensuring a future worth living: networked, digital, electrical.  
Shaping the e-dialistic future. 

The VDE (VDE Association for Electrical, Electronic & Information Technologies) is headquartered in Frankfurt am Main. For more information, visit www.vde.com