In mid-April, the Federal Ministry for Economic Affairs and Climate Protection (BMWK) presented the “White Paper on Hydrogen Storage”. The document is based on many studies and scenarios and quantifies both future storage requirements and the potential for hydrogen storage in Germany. It shows that the demand for storage capacities will increase significantly in the coming years.
The white paper also addresses key concerns of the industry, such as the demand for faster planning and approval procedures, new funding programs and a reliable long-term market design. The paper is intended to form an important basis for the work of the next German government.
The modelling in the White Paper is based on the BMWK long-term scenarios, an analysis by the EWI from March 2024 and the results of the INES market survey from January 2025, among others. All sources forecast a significant increase in hydrogen storage requirements.
Specifically, the BMWK expects demand of 2 to 7 terawatt hours (TWh) by 2030, which could increase to 76 to 80 TWh by 2045. The ministry cites the increasing use of hydrogen in industry and in power plants for reconversion into electricity as the main drivers. At European level, storage requirements could even increase to up to 161 TWh by 2050. The White Paper, including the comments received, will serve as a working basis for the German government in the 21st legislative period.
Optimal geological conditions
The white paper emphasizes that Germany has excellent geological conditions for H2 storage. With its potential, the country could not only cover its own hydrogen storage needs but also support those of its European neighbours. “Germany can play a key role in Europe,” the document states.
Salt caverns are considered the most promising option for hydrogen storage. This is complemented by above-ground storage options such as pressurized and liquid hydrogen tanks, particularly for short-term storage requirements and decentralized applications.
A central focus is on the use of existing infrastructure: by converting existing natural gas and crude oil storage facilities, around 20 to 50 percent of the national storage requirement could be covered by 2040. Given the right legal framework, the conversion of salt caverns would be possible within six years, with the actual construction phase taking around three years. In comparison, the construction of new storage facilities takes up to twelve years.
Competitive market design as an objective
The White Paper advocates the establishment of a competitively organized hydrogen storage market, which, according to the Ministry, has “significant economic and technological advantages”. The existing technological diversity and the possibility of decentralized storage are highlighted as important prerequisites for the emergence of functioning competition.
To promote such market structures, the BMWK recommends the removal of barriers to market entry and the creation of clear but specifically limited regulatory requirements. These should create investment security and at the same time strengthen competition without restricting it unnecessarily.
