No Synchronisation, No Scale-Up: The Road to Hydrogen Runs Through Mobility

Tobias Merten
Nov 11
3 min read

A wake-up call from Germany’s Mittelstand for a synchronised hydrogen policy

Germany’s hydrogen ramp-up stands at a crossroads: technology and capital are (still) available – but the market is falling out of sync.

The Federal Court of Auditors summarised it succinctly in its report “Implementation of the Federal Hydrogen Strategy” (28 October 2025): too many strategies, too little steering.

Much has been achieved – yet the hydrogen economy is not an end in itself. Its success will not be decided in concept papers, but in operations – where projects become routine and experience creates markets.

Hydrogen mobility is the initial market of the scale-up: it connects technology, use and infrastructure, and can prove market viability first.

Whether Germany manages to move from strategy to execution will depend on whether policymakers and industry succeed in bringing this sector back into rhythm.

Situation

Funding dissipates: Despite more than €15 billion in funding – including €6.9 billion for R&D, market ramp-up, mobility, and infrastructure since 2018 – market impact remains limited. Around €3 billion are tied up in delayed projects due to fragmented procedures.

Technological maturity without operational readiness: What works in the lab fails in the field. Approvals, regulations, and responsibilities are misaligned.

Two ramp-ups, no harmony: Mobility projects are becoming economically viable, while industrial and infrastructure projects remain stuck in planning and tendering loops.

The Mittelstand lose trust and capital: Complexity, costs, and uncertainty slow down investment; early pioneers are writing off millions – optimism is giving way to fatigue.

An economic déjà-vu: As with solar, wind, and e-mobility, Germany risks losing industrial leadership. Asia scales up – Germany fragments and loses pace.

Experience as an export asset: German operational know-how is in high demand abroad – but it only holds value if the domestic market works.

Levers for an Effective Market Ramp-Up – Mobility as a Market Driver

1. Building Reslience

Create trust through reliability: Federal and state authorities must clarify responsibilities, harmonise procedures, and align funding mechanisms with market logic. Only stable frameworks secure investment.

Strengthen regional value creation: Specifically promote Mittelstand-led, decentralised H₂ projects and cut bureaucracy. Regional supply and service chains ensure acceptance and employment.

Anchor system relevance: Recognise storage and reserve capacities as part of critical infrastructure – the foundation for supply security and operational continuity.

2. Ensuring Economic Viability

Provide planning certainty: Reduce energy costs for hydrogen use, adapt RED II requirements to practical realities, and extend the toll exemption for zero-emission drivetrains until 2031. Only predictable costs enable investment.

Create fair market access: Simplify programmes such as KsNI, maintain technology neutrality, and adjust GHG quota rules so that hydrogen combustion and fuel cell technologies are treated equally – including the clear eligibility of biogenic hydrogen pathways and waste streams. Unified rules build confidence.

Secure investments: Temporarily cap core network costs, expand tax incentives, and introduce multi-year funding commitments – ensuring reliable amortisation and scale-up potential.

3. Klimaziele realistisch erreichen

Two technologies – one goal: Position hydrogen mobility as a complementary pillar to electrification, particularly in heavy-duty and fleet transport. Only a dual approach can deliver climate neutrality.

Include the Mittelstand: Design cluster and funding strategies so that small and medium-sized enterprises remain active participants – they provide the implementation capacity and pace.

Establish European standards: Implement harmonised certification, interoperable systems, and transparent guarantees of origin across the EU. This enhances investment security and accelerates market adoption.

The hydrogen ramp-up will succeed once plans are put into practice, policy enables markets – and the Mittelstand can invest again instead of standing by.

Contact and Collaboration

This Policy Brief by Bridge the Momentum & Partners was developed in close cooperation with a network of medium-sized industrial and technology partners: MaierKorduletsch, Paul Nutzfahrzeuge, HiTES, Liebherr Components, Westfalen AG, Tyczka Hydrogen, Maximator Hydrogen, FEST.

Bridge the Momentum is responsible for concept, analysis, and publication of this Policy Brief. Partner companies have contributed professional expertise but do not represent a joint political position.

For further enquiries and in-depth discussions, please contact Bridge the Momentum.