Building a Carbon-Neutral Future: Ireland and Germany’s Green Hydrogen Path to Growth and Justice

Germany’s recently published green hydrogen import strategy highlights the need to secure reliable energy sources to meet its climate neutrality goals by 2045. While a pipeline to Denmark and Norway is on the fast track, discussions are also underway with Great Britain and Ireland for potential collaborations.

With its exceptional offshore wind resources, Ireland is well-positioned to become a key supplier of green hydrogen to Germany in the medium to long term. This evolving partnership between Ireland and Germany offers an opportunity to foster innovative offtake agreements and promote socio-economic benefits, including gender equity and local economic development. By building on this collaboration, both nations can enhance their bilateral relations while contributing to a sustainable and inclusive energy future.

Ireland in 2024: Laying the Groundwork for a Green Hydrogen Economy

In 2024, Ireland is in the initial stages of developing its green hydrogen sector, with a heavy reliance on fossil fuel imports—77% of its current energy system. The Climate Action and Low-Carbon Development Act 2021 sets ambitious targets, including a 51% reduction in greenhouse gas emissions by 2030 and achieving climate neutrality by 2050. The National Hydrogen Strategy, published in July 2023, outlines plans to harness surplus renewable electricity, particularly from wind energy, to produce green hydrogen. A collaboration with Germany, formalized through the Joint Declaration of Intent in May 2023, focuses on joint research and development in hydrogen production, storage, and transport.

Building Momentum: Expanding Ireland’s Green Hydrogen Capacity for Domestic Markets by 2030

Ireland’s renewable energy strategy by 2030 targets a total capacity of 22 GW, including 5 GW from offshore wind, 9 GW from onshore wind, and 8 GW from solar power. This capacity will generate surplus renewable electricity, which will be directed toward green hydrogen production. Production facilities for green hydrogen are strategically planned near major wind farms across the country.

To support the integration of green hydrogen into the national energy system, Gas Networks Ireland is exploring the integration of up to 20% hydrogen into the national gas grid. Additionally, hydrogen storage solutions, including underground salt caverns in the southern and western regions, are being considered to ensure a stable hydrogen supply. Smaller-scale storage will be established near production sites and refueling stations to support the transition to hydrogen-powered transport and other sectors.

Towards Export: Ireland’s Green Hydrogen Strategy for 2030-2035

From 2030 to 2035, Ireland will shift its focus to scaling up green hydrogen production for export. The renewable energy capacity developed by 2030 (22 GW) will play a crucial role in this transition. Ireland plans to further expand its offshore wind capacity, with additional projects aimed at specifically boosting hydrogen production for export.

Key to this strategy is the repurposing of the Moffat interconnector, an existing natural gas pipeline linking Ireland with Scotland, which will be adapted for hydrogen transport. Once the hydrogen reaches Scotland, it will be transported through the UK’s repurposed pipeline system, connecting to the European Hydrogen Backbone via a key pipeline link in the North Sea. This connection will integrate Ireland into the European hydrogen market, allowing for significant exports to regions such as Germany, France, the Netherlands, and Belgium.

By 2050, Ireland aims to further develop its offshore wind energy capacity to reach 37 GW, as part of its strategy to become a leading producer of green hydrogen in Europe. This target is part of a broader ambition to harness up to 80 GW of offshore wind potential. The large-scale deployment of green hydrogen production will ramp up from 2038 to 2050, supported by advanced electrolysis facilities and expanded hydrogen storage solutions.

A New Era for Bilateral Relations and Green Hydrogen Export

Ireland is poised to become a key supplier of green hydrogen to Germany, with export plans that are realistic for the medium to long term. This development is set to strengthen the bilateral relationship and open new avenues for cooperation. To fully realize this potential, Ireland needs a clear and transparent political framework, underpinned by innovative projects across various sectors and significant investments in offshore wind farms, pipeline networks, and other critical infrastructure.

Innovative offtake agreements could play a pivotal role in aligning Ireland’s green hydrogen capabilities with Germany’s industrial needs. These agreements would secure long-term contracts, providing the financial stability and market certainty necessary to attract large-scale investments. With such a framework in place, Ireland can effectively expand its hydrogen production infrastructure and establish itself as a reliable supplier to Germany.

Harnessing the Opportunity: Ireland’s Green Hydrogen Strategy as a Catalyst for Social Justice

Ireland’s green hydrogen sector offers a unique opportunity to drive both the energy transition and social justice. Beyond the technical and economic aspects, there’s significant potential to embed socio-economic principles that ensure a just and inclusive transition.

To address the skills gap in Ireland's renewable energy sector, the workforce will need to triple to around 9,000 full-time equivalent employees by 2030. This expansion is an opportunity to enhance gender equity and socio-economic balance within the sector. Initiatives such as joint vocational training centers in Ireland and Germany, scholarships or incentives for underrepresented groups, and strategic investments in local economies are key steps toward achieving these goals.

The green hydrogen sector also presents an unprecedented chance to increase diversity in decision-making processes, particularly in regions most affected by the transition away from fossil fuels. Collaborative efforts between Ireland and Germany could lead to the creation of gender-focused impact investment funds and public awareness campaigns that promote STEM education among young women and socio-economically disadvantaged youths.

By focusing on these socio-economic factors, Ireland’s green hydrogen strategy could set an example for a just and inclusive energy transition, ensuring that the benefits of this emerging sector are widely shared and contribute to social cohesion in both countries.