VDMA – Hydrogen Market Ramp-Up Requires a Reliable Framework
The Master Plan for Hydrogen and Electricity-Based Fuels in Transportation is intended to create a strategic framework for the ramp-up of climate-neutral energy sources. It is crucial that concrete measures will follow.
The market ramp-up of hydrogen and renewable fuels will only succeed if regulation, infrastructure, production, and demand are developed simultaneously and reliably: This was made clear by the stakeholder dialogue held by the Federal Ministry of Transport at the end of June 2026. This is also reaffirmed by the statement from VDMA Engines and Systems as well as Power-to-X for Applications, which has now been submitted to the Federal Ministry of Transport and which you can download here. Germany needs a master plan that sets goals, facilitates investment, and supports the ramp-up of hydrogen, hydrogen derivatives, and renewable fuels along the entire value chain. Road transport, off-road applications, mobile machinery, and industry should be considered together in order to strengthen the economic viability of the infrastructure and create economies of scale.
Hydrogen as part of an integrated energy system
The mechanical and plant engineering sector plays a key role in building the hydrogen economy. Its technologies range from electrolysers and power-to-X plants to hydrogen engines and fuel cell systems. It is therefore necessary to view hydrogen and renewable fuels as part of an integrated industrial, energy, and transportation system. At the same time, it is important to strengthen technological expertise and industrial value creation in Europe and to avoid new strategic dependencies. Electrolyzers can not only produce hydrogen but also contribute to the integration of renewable energy and the stabilization of the energy system.
Creating Reliable Prospects
The implementation of RED III has established important prerequisites for the ramp-up of climate-neutral energy sources. However, to trigger investments, the industry needs reliable framework conditions extending beyond the year 2030. VDMA Motors and Systems and Power-to-X for Applications are therefore advocating for a technology-neutral further development of the European legal framework. Hydrogen and renewable fuels will continue to be needed in the future wherever direct electrification reaches technical or economic limits.
Enabling investments, reducing bureaucracy
Billions in investments are required for the ramp-up of the hydrogen economy. These investments can only take place if companies can rely on stable framework conditions. What is therefore needed are practical rules for the production of RFNBOs, reliable grandfathering provisions for investments, and long-term off-take prospects. Regulatory uncertainties should be eliminated as quickly as possible so as not to further delay investment decisions.
Jointly developing infrastructure, applications, and markets
Hydrogen and renewable fuels are needed in a variety of applications, ranging from road transport to mobile machinery and off-road applications to industrial processes. Accordingly, the infrastructure must be planned in a technology-neutral manner and must more closely integrate hydrogen refueling stations, charging infrastructure, ports, logistics hubs, and industrial clusters. Only through the coordinated development of supply and demand can the urgently needed economies of scale be achieved.
Strengthening Funding Frameworks and International Supply Chains
In addition to a reliable regulatory framework, funding instruments remain a key component for market ramp-up. Existing funding programs for hydrogen derivatives and renewable fuels should be continued and designed to be technology-neutral. At the same time, international procurement instruments such as H2Global and the EU Hydrogen Bank must be better integrated with infrastructure expansion and demand. Imports, transportation routes, and consumer markets should be developed jointly from the outset.
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VDMA – Hydrogen Market Ramp-Up Requires a Reliable Framework, source
