Progress Report

on the Hydrogen Ramp-Up in Bavaria

The Progress Report on the Hydrogen Ramp-Up in Bavaria examines current political and economic developments, as well as the status of ongoing initiatives and projects in Bavaria, and sets out measures to achieve the objectives of the Bavarian Hydrogen Strategy 2.0, published in 2024 by the Bavarian Ministry of Economic Affairs, Regional Development and Energy.

The report provides an overview of the progress made by hydrogen initiatives and projects in Bavaria, which shows that the roll-out of the hydrogen economy in Bavaria is well under way. At the same time, it is clear that, since 2022, the roll-out of hydrogen has been progressing more slowly than originally anticipated within a complex and dynamic market and regulatory environment. The main causes are, in particular, high costs, uncertainties regarding the economic and legal framework, significant regulatory hurdles, delays in infrastructure development and – as a result – limited demand to date. Findings from a stakeholder consultation process aimed at identifying key areas of action for the further ramp-up were incorporated into the progress report. Partners in the Hydrogen Alliance Bavaria and Bavarian hydrogen regions were thus able to contribute their perspectives. H2.B subsequently developed measures for a sustainably successful roll-out of hydrogen, addressing various stakeholders and levels of government. Finally, the report comments on further developments and forecasts and outlines the potential for technological applications of hydrogen in Bavaria.

The Progress Report was handed to the Bavarian Minister of State for Economic Affairs, Regional Development and Energy on 24 June 2026.

The English translation of the Report will be published shortly. Currently the executive summary is available in English and you can find more information in English on this page.

 

Brief Summary

Bavaria is well-positioned to play a leading role in the hydrogen sector. Key factors include its strong industrial base, a high-performance and innovative research and development landscape, numerous dedicated regional initiatives, and, with the H2.B and the Bavarian Hydrogen Alliance, a nationally and internationally established platform for the Bavarian hydrogen ecosystem.

This progress report shows that, since the Hydrogen Roadmap Bavaria was published in 2022, the ramp-up of hydrogen has been proceeding more slowly than originally anticipated due to a complex and dynamic market and regulatory environment. The main reasons for this include, in particular, high costs, uncertainties regarding the economic and legal framework, significant regulatory hurdles, delays in infrastructure development, and – as a result – limited demand to date. At the same time, however, important foundations have been laid, and key steps have been successfully taken to set the course for the next implementation phases.

In recent years, significant political and regulatory frameworks have been established at the European, German, and Bavarian levels. Bavaria has supported these developments through its own funding measures totaling 255 million euros – particularly in the expansion of electrolysis capacity and hydrogen refueling stations. This has laid the groundwork for the market’s continued growth. The Bavarian State Ministry of Economic Affairs, Regional Development and Energy has approved 24 funding grants for electrolysis projects with a total capacity of 143 MWel, as well as 29 grants for hydrogen refueling stations. The Free State also supports a wide range of research and development projects across the entire hydrogen value chain. Of central strategic importance is the approved hydrogen core network in Germany, which comprises approximately 1,050 kilometers of pipeline infrastructure in Bavaria. With the planned commissioning of the first sections over the next two years, essential prerequisites for a cross-regional supply will be established. In addition, progress is being made in the development of distribution networks, the establishment of regional ecosystems, storage projects, and pilot and demonstration projects in industry, mobility, and heating.

At the same time, it is evident that many projects depend on more reliable framework conditions adapted to current circumstances, as well as additional economic stimulus. In discussions with Bavarian stakeholders along the hydrogen value chain as part of a stakeholder dialogue, the importance of hydrogen for decarbonization was emphasized – particularly in application areas where direct electrification reaches its limits. At the same time, it is clear that a successful ramp-up requires the coordinated development of production, infrastructure, imports, storage, and demand. Four key areas of action are central to this: a holistic, integrated approach to the energy transition; the expansion of transport, distribution, import, and storage infrastructure; the improvement of economic viability and investment security; and the strengthening of resilience through diversification, regional value creation, and technological neutrality The report thus identifies a clear need for action in the coming years. These include reliable and appropriate political and regulatory frameworks; the accelerated expansion of the core grid, distribution networks, and storage facilities; the establishment of sustainable import structures; and greater market activation on the demand side. In addition, there is a need for continued support for research and innovation, the strengthening of regional hydrogen hubs, the development of skilled workers, and closer integration of hydrogen, electricity, and carbon dioxide (CO2) infrastructure. Bavaria has the opportunity not only to secure its technological leadership but also to further expand it in the course of the European hydrogen ramp-up. To achieve this, it will be essential to gradually translate the foundations already laid into robust market and infrastructure development.

Key Areas of Action

Reliable and appropriate political and regulatory framework

Reliable and appropriate framework conditions are essential for mobilising investment and creating viable business models. A clear and coherent regulatory framework for hydrogen technologies – featuring consistent and long-term stable targets and requirements, as well as universally applicable standards and norms – not only simplifies the handling of hydrogen but also provides planning and investment certainty for companies and investors. This is particularly important for decisions, processes and contracts in which long-term commitments serve to minimise risk.

Accelerated expansion of the hydrogen core network, distribution networks and storage infrastructure

Infrastructure forms the backbone for the transport, storage, conversion and distribution of hydrogen to end-users and plays a crucial role in the successful roll-out of the hydrogen economy in Bavaria. A well-developed and internationally connected system of feed-in points, converters, transhipment terminals, storage facilities and transport options, which serves all regions in Bavaria in line with demand, not only enables cost-effective and reliable transport to the various points of demand, but also ensures security of supply, thereby strengthening economic competitiveness and supporting the transition to climate neutrality.

Development of viable import structures

Bavaria is expected to rely to a large extent on hydrogen imports from outside Bavaria, particularly from abroad. Another crucial aspect is therefore the development of diversified supply sources and import routes to ensure security of supply and industrial transformation. To manage hydrogen imports effectively, it is important to establish long-term international hydrogen partnerships with a wide range of producing countries at an early stage.

Stronger market activation on the demand side

In addition to attracting anchor customers with high hydrogen demand, bringing together small and medium-sized consumers within a hub is a key factor for the successful ramp-up of the hydrogen economy in Bavaria. For industry and commerce, which have so far been supplied with natural gas via the distribution network, providing a reliable roadmap for the transition to hydrogen is of great importance in enabling these businesses to move away from fossil fuels.

Continued support for research and innovation

Research and innovation are crucial to the development of new technologies; furthermore, they are key drivers for increasing efficiency, reducing costs, scaling up production and reducing dependence on critical raw materials. A strong research and development sector also strengthens the domestic market and has a positive impact on the training and availability of skilled personnel.

Strengthening of regional hydrogen hubs

In Bavaria, a large and innovative state, regional ecosystems form the foundation for the development of a sustainable and comprehensive hydrogen infrastructure. They bring together local stakeholders from industry, research and society, raise awareness amongst technology users and create decentralised market structures, enabling technologies to be put into practice more quickly and infrastructure to be developed in a targeted manner.

Closer coordination of the planning and development of hydrogen, electricity, and CO 2 infrastructure systems

For the transformation to be successful, a needs-based CO₂ transport infrastructure – linking unavoidable CO₂ emitters with production facilities for hydrogen derivatives – must be designed and implemented in tandem with new hydrogen-compatible power stations and a strategic framework for hydrogen storage, carbon management, the circular economy and negative emissions.

Workforce and skills development

To ensure that the necessary expertise is available for the roll-out of hydrogen applications, skilled workers must receive appropriate training and further education.

Key Areas of Action

Reliable and appropriate political and regulatory framework

Clear and reliable framework conditions are essential for mobilising investment and creating viable business models. An appropriate, clear and coherent regulatory framework for hydrogen technologies – featuring consistent and long-term stable targets and requirements, as well as universally applicable standards and norms – not only simplifies the handling of hydrogen but also provides planning and investment certainty for companies and investors. This is particularly important for decisions, processes and contracts in which long-term commitments serve to minimise risk.

Accelerated expansion of the hydrogen core network, distribution networks and storage infrastructure

Infrastructure forms the backbone for the transport, storage, conversion and distribution of hydrogen to end-users and plays a crucial role in the successful roll-out of the hydrogen economy in Bavaria. A well-developed and internationally connected system of feed-in points, converters, transshipment terminals, storage facilities and transport options, which serves all regions in Bavaria in line with demand, not only enables cost-effective and reliable transport to the various points of demand, but also ensures security of supply, thereby strengthening economic competitiveness and supporting the transition to climate neutrality.

Development of viable import structures

Bavaria is expected to rely to a large extent on hydrogen imports from outside Bavaria, particularly from abroad. Another crucial aspect is therefore the development of diversified supply sources and import routes to ensure security of supply and industrial transformation. To manage hydrogen imports effectively, it is important to establish long-term international hydrogen partnerships with a wide range of producing countries at an early stage.

Stronger market activation on the demand side

In addition to attracting anchor customers with high hydrogen demand, bringing together small and medium-sized consumers within a hub is a key factor for the successful ramp-up of the hydrogen economy in Bavaria. For industry and commerce, which have so far been supplied with natural gas via the distribution network, providing a reliable roadmap for the transition to hydrogen is of great importance in enabling these businesses to move away from fossil fuels.

Continued support for research and innovation

Research and innovation are crucial to the development of new technologies; furthermore, they are key drivers for increasing efficiency, reducing costs, scaling up production and reducing dependence on critical raw materials. A strong research and development sector also strengthens the domestic market and has a positive impact on the training and availability of skilled personnel.

Strengthening of regional hydrogen hubs

In Bavaria, a large and innovative state, regional ecosystems form the foundation for the development of a sustainable and comprehensive hydrogen infrastructure. They bring together local stakeholders from industry, research and society, raise awareness amongst technology users and create decentralised market structures, enabling technologies to be put into practice more quickly and infrastructure to be developed in a targeted manner.

Closer coordination of the planning and development of hydrogen, electricity, and CO 2 infrastructure systems

For the transformation to be successful, a needs-based CO₂ transport infrastructure – linking unavoidable CO₂ emitters with production facilities for hydrogen derivatives – must be designed and implemented in tandem with new hydrogen-compatible power stations and a strategic framework for hydrogen storage, carbon management, the circular economy and negative emissions.

Workforce and skills development

To ensure that the necessary expertise is available for the roll-out of hydrogen applications, skilled workers must receive appropriate training and further education.

From Position Paper to Progress Report

The publication of the  Position Paper on the Bavarian Hydrogen Economy and the Bavarian Hydrogen Strategy provided an initial outlook for the development and shaping of a Bavarian hydrogen economy. The Hydrogen Roadmap Bavaria took up these ideas and painted a picture of Bavaria’s future as a centre for business and science in relation to hydrogen, provided an estimate of potential hydrogen consumption in Bavaria and, based on this, outlined key milestones for the roll-out of hydrogen technologies. In 2024, the Free State of Bavaria published the Bavarian Hydrogen Strategy 2.0 as a sub-strategy of the Energy Plan Bavaria 2040.

May 2020: Position Paper

The Position Paper by the Hydrogen Alliance Bavaria on the Bavarian hydrogen economy was a first step towards developing the Bavarian Hydrogen Strategy, which was published at the same time as the Position Paper. The Position Paper was drawn up as part of an extensive consultation process, coordinated by H2.B, involving the partners represented in the Hydrogen Alliance Bavaria.

View Position Paper (German)

May 2020: Hydrogen Strategy

Through its Hydrogen Strategy, the Free State of Bavaria aims to bring innovative hydrogen technologies into practical use quickly. Building on what has already been achieved, the Bavarian Hydrogen Strategy sets out clear objectives and specific measures to position Bavaria at the forefront of the global race for the best technological solutions.

View Strategy (German)

April 2022: Hydrogen Roadmap Bavaria

The Hydrogen Roadmap Bavaria was drawn up between 2021 and 2022 under the leadership of H2.B, in collaboration with the  Hydrogen Alliance Bavaria and other hydrogen stakeholders in Germany. The roadmap aims to highlight prospects and specific areas for action, and to help accelerate the ramp-up of the Bavarian hydrogen economy.

View Roadmap (English)

July 2024: Hydrogen Strategy 2.0

The Bavarian Hydrogen Strategy 2.0 was published by the Bavarian Ministry of Economic Affairs, Energy and Regional Development as a sub-strategy of the Energy Plan Bavaria 2040. The Bavarian Hydrogen Strategy 2.0 aims to examine hydrogen across the entire value chain – from production through logistics and storage to its use in various applications – and to firmly establish it as a flexible option within the energy system.

View Strategy 2.0 (English)

June 2026: Progress Report on the Hydrogen Ramp-up in Bavaria

The Progress Report on the Ramp-up of the Hydrogen Economy in Bavaria examines the latest political and economic developments since 2022, as well as the status of ongoing initiatives and projects in Bavaria. Based on this, the report sets out measures to achieve the objectives of the Bavarian Hydrogen Strategy 2.0. The report was drawn up by H2.B between 2025 and 2026 as part of a consultation process aimed at identifying areas of action.