At its 2025 Annual Conference, IKEM joined ninety guests and experts from science, business and politics to take stock: How is the hydrogen economy progressing? And what decisions must be made to ensure that hydrogen and its derivatives become the backbone of a climate-neutral energy system?
In his opening address, IKEM Director Prof. Dr Michael Rodi highlighted the importance of hydrogen for the energy transition:
“Hydrogen and its derivatives are central elements of German and European climate strategies. Yet, after an initial wave of enthusiasm, the development of the hydrogen economy has slowed. With this conference, we aim to provide new impetus and, through dialogue with academia, policymakers and practitioners, develop strategies for a dynamic transformation.”
Presentations
Dr Philipp Steinberg (energy and climate policy expert) stressed in his keynote that hydrogen must be understood as an integral part of the energy transition – not as an isolated solution. He called for an “intelligent triad” of infrastructure support, clear regulatory frameworks and transitional incentives to address risks related to volumes and prices.
Prof. Dr Mario Ragwitz (Fraunhofer IEG) presented findings from the flagship project TransHyDE on future hydrogen demand and transport capacities. Scenarios for Germany project a broad demand range of 400–2,700 TWh by 2050, with consumption concentrated in key industrial sectors such as steel and chemicals. Developing these lead markets, he argued, will be essential for scaling up the hydrogen economy.
Friederike Allolio (IKEM) discussed the legal framework for expanding hydrogen infrastructure. While the foundation is largely in place – for example through the upcoming Hydrogen Acceleration Act – she emphasised that an effective legal framework must be accompanied by a clear political commitment to hydrogen deployment.
Dr Eva Schmid (dena) focused on the next stage of market development for hydrogen production. The first phase has been achieved over the past five years, but the next will require industrial anchor customers willing to purchase hydrogen in large volumes. She noted that current conditions are insufficiently attractive and that both national and European instruments must be urgently refined.
Anika Nicolaas Ponder (IKEM) underlined the importance of public acceptance, communication and participation. While climate policy may currently be less prominent in public debate, the majority of citizens continue to support the energy transition and green hydrogen. This support, she said, must become more visible. Good planning, open participation and transparent communication are key to ensuring a transition that is not only fast, but also fair and inclusive.
Prof. Dr Joachim Müller-Kirchenbauer (TU Berlin) analysed international hydrogen trade. He observed that current global supply exceeds demand and that competitive export volumes are already feasible. Nevertheless, market expectations remain subdued, both domestically and internationally, creating uncertainty about the pace and scale of future hydrogen trade.
Dr Michael Kalis (IKEM) added a legal perspective on global hydrogen markets: instead of a single world market, fragmented legal spaces are emerging, shaped by bilateral partnerships. Europe may seek to export its regulatory standards, but this could also create trade barriers. Kalis called for new hybrid forms of legal cooperation to ensure that trade develops in a fair and sustainable manner.
Prof. Dr.-Ing. Karsten Lemmer (DLR) explored hydrogen use in the mobility sector, identifying the greatest potential in aviation. Climate-neutral air transport, he argued, is possible if the right policy and investment decisions are made to support technological innovation.
Prof. Dr Michael Lehmann (FH Erfurt/IKEM) examined hydrogen in rail transport. He concluded that fuel-cell trains are only appropriate in specific cases, with battery-powered trains or electrification often representing more efficient solutions. Nevertheless, regional hydrogen-based value chains could create suitable conditions for targeted use of hydrogen trains.
Panel Discussion
In the closing panel discussion, moderated by Susan Wilms (IKEM), Fabian Floto (Eternal Power), Dr Nadine Kanu (German Renewable Energy Federation), Bernhard Kluttig (Federal Ministry for Economic Affairs and Energy) and Friederike Lassen (German Hydrogen Association) discussed the next steps for advancing the hydrogen economy.
Participants highlighted the urgent need to expand electrolysis capacity. However, low current demand poses a key barrier to investment. To reach expansion targets, profitability and investment security must be strengthened, and existing policy instruments consistently applied. Possible solutions discussed included demand incentives through public procurement and the introduction of quota systems.
A central topic was the national and European regulatory framework. Current initiatives such as the planned Hydrogen Acceleration Act, the Geothermal Acceleration Act (relevant for hydrogen storage), and forthcoming transport-sector quotas were welcomed. The national implementation of the EU Gas and Hydrogen Market Package could also enhance planning certainty for investors.
Overall, participants viewed the state of the hydrogen economy as challenging but not without hope. They called for a holistic approach that considers energy supply, industry and resilience together, supported by reliable regulatory and economic conditions. Germany, they argued, should pursue an active industrial policy that strengthens both international partnerships and domestic production.
The presentations and discussions at the Annual Conference demonstrated that hydrogen, in combination with other decarbonisation options, is key to achieving a climate-neutral future, explained IKEM Managing Director Susan Wilms:
“The foundations of the hydrogen economy – particularly in terms of production and transport – have been laid. But to accelerate the next phase, we now need stronger international cooperation, public support, clear political signals, and a stable legal and economic framework. Special attention must be given to the demand side of the hydrogen market – through measures such as quotas and the development of lead markets.”
