Whether as seasonal energy storage or the great promise of zero-emission aviation, hydrogen has long been seen as an indispensable technological path to carbon neutrality. At the same time, hydrogen is already an important commodity for the chemical industry, which is currently the largest user of hydrogen in Germany. In 2021, German chemical plants consumed 1.1 million tons of hydrogen, which is equivalent to 37 terawatt hours of energy and about two-thirds of the hydrogen used in Germany.

According to a study by the German Hydrogen Task Force, the demand for hydrogen in the chemical industry could rise to more than 220 TWH before the established carbon neutrality target is achieved in 2045. The research team, composed of experts from the Society for Chemical Engineering and Biotechnology (DECHEMA) and the National Academy of Science and Engineering (acatech), was tasked with designing a roadmap for building a hydrogen economy so that business, administrative, and political actors can jointly understand the potential future prospects of a hydrogen economy and the steps needed to create one. The project has received a subsidy of €4.25 million from the budget of the German Ministry of Education and Research and the German Ministry of Economic Affairs and Climate Action. One of the areas covered by the project is the chemical industry (excluding refineries), which emits about 112 metric tons of carbon dioxide equivalent per year. That accounts for about 15 percent of Germany’s total emissions, although the sector accounts for only about 7 percent of total energy consumption.

The apparent mismatch between energy consumption and emissions in the chemical sector is due to the industry’s use of fossil fuels as a base material. The chemical industry not only uses coal, oil, and natural gas as energy sources, but also breaks these resources down as feedstocks into elements, primarily carbon and hydrogen, in order to be recombined to produce chemical products. This is how the industry produces basic materials such as ammonia and methanol, which are then further processed into plastics and artificial resins, fertilizers and paints, personal hygiene products, cleaners and pharmaceuticals. All of these products contain fossil fuels, and some are even composed entirely of fossil fuels, with burning or consuming greenhouse gases accounting for half of the industry’s emissions, with the other half coming from the conversion process.

Green hydrogen is the key to a sustainable chemical industry

Therefore, even if the chemical industry’s energy came entirely from sustainable sources, it would only halve emissions. The chemical industry could more than halve its emissions by switching from fossil (grey) hydrogen to sustainable (green) hydrogen. To date, hydrogen has been produced almost exclusively from fossil fuels. Germany, which gets about 5% of its hydrogen from renewable sources, is an international leader. By 2045/2050, Germany’s hydrogen demand will increase more than sixfold to more than 220 TWH. Peak demand could be as high as 283 TWH, equivalent to 7.5 times current consumption.