• 05/08/2025
  • Report

Energy transition? Only with proper infrastructure.

Developing a hydrogen economy is a cornerstone of Germany’s climate policy. Through the planned core hydrogen network, the National Hydrogen Strategy and a range of funding programmes, the German government aims to make hydrogen widely available to industry. In practice, however, many companies find that technological innovation runs up against infrastructure bottlenecks.

Signposts with “ELECTRIC” “NATURAL GAS” HDYROGEN" signs

One such example is the German company G.A. Röders, a foundry that has developed a hydrogen-fired crucible furnace – a significant step toward climate-neutral production. However, the furnace cannot currently be operated due to the lack of a connection to the hydrogen grid. “The planned hydrogen pipeline ends more than 40 kilometres from our site,” explains Andreas Röders, Managing Director Injection Moulding of G.A. Röders GmbH & Co. KG in Soltau.

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With no economically viable way to supply hydrogen, the system remains idle. “We need targeted investments in hydrogen infrastructure – especially outside major industrial hubs,” Röders urges. His remarks are part of a video contribution to the DIHK campaign “Ich kann so nicht arbeiten” (“I can’t work like this”), which highlights structural and regulatory obstacles that prevent businesses from putting climate-friendly technologies into practice.

The forgotten middle?

This case reflects a broader challenge in Germany’s hydrogen rollout: while infrastructure projects are being launched at national level, initial grid expansion is largely focused on industrial clusters, import terminals and storage sites. Many SMEs located in rural areas remain off-grid and are not yet integrated into planning for the national hydrogen backbone.

In theory, workarounds such as truck-based hydrogen delivery or on-site electrolysis are possible. However, both options come with significant costs and logistical complexity – making them impractical as long-term solutions for energy-intensive industrial applications.

ydrogen core network in Germany graph
Authorised hydrogen core network in Germany. The dashed lines show the new construction line, the solid lines the conversions. Status: 22 October 2024

Hydrogen – no silver bullet (yet)

At the same time, research projects such as InnoGuss, led by the German Foundry Association (BDG) in partnership with BDG-Service GmbH and the VDEh-Betriebsforschungsinstitut (BFI), show that hydrogen is not the only lever for reducing emissions in the die casting industry. Alongside hydrogen, the project explored the use of biomass, electrification, and carbon capture and utilisation/storage (CCUS) as viable decarbonisation pathways.

And rightly so – because the research confirms: availability and pipeline access remain the biggest constraints. The conclusion: hydrogen is unlikely to play as dominant a role in the foundry sector as in steel or chemical production. However, the project update notes that a technology-neutral approach remains essential, and that further research into hydrogen use in foundries is urgently needed. In particular, foundry research institutes are now called upon to step up.

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Foundries take the opportunity – where they can

Across the sector, many companies are already taking action to reduce their carbon footprint. These efforts include investments in more energy-efficient melting and casting technologies, increased use of recycled materials – especially secondary aluminium – as well as sourcing certified green electricity or generating their own solar power. Digitalisation and in-line quality control systems also help reduce energy losses and minimise scrap rates.

Beyond the foundry floor, lightweight design concepts, gigacasting and function-integrated components offer further potential to reduce material and energy consumption – not just in production, but throughout the downstream value chain. In many cases, this opens up a climate-friendly transformation path that does not depend on hydrogen infrastructure, provided that suitable regulatory and economic conditions are in place.