Hydrogen-ready industrial SMEs struggle to get connected as Germany's core network prioritises big consumers

Hydrogen as a decarbonisation lever

Hydrogen is seen as a key enabler for decarbonising industry, particularly in sectors where high temperatures are needed (foundries, glassworks, chemicals) and electrification is not straightforward. Green hydrogen is meant to replace fossil fuels and significantly cut CO₂ emissions.

A network built for big players

Germany's hydrogen core network, approved by the Bundesnetzagentur at the end of 2024, will span some 9,000 kilometres by 2032. Much of it builds on repurposed natural gas pipelines, connecting large industrial centres, storage sites, production facilities and import points. The design, however, leaves many small and medium-sized enterprises without a direct connection.

HMT's 'open-heart surgery'

One such SME is HMT Höfer Metall Technik in Hettstedt, Saxony‑Anhalt. With roughly 250 employees, the company produces aluminium profiles and castings for the automotive sector. It has been researching hydrogen for its melting furnaces since 2021, working with the Gas‑ und Wärme‑Institut (GWI) and Otto‑von‑Guericke University Magdeburg. The first trials with hydrogen are set to start in the coming weeks.

The conversion of a running production is open‑heart surgery. The plants have to be modernized without stopping production or compromising product quality.

Technology ready, supply missing

Anne Giese of GWI says the technology itself is largely mature. Modern burner systems can already run on natural gas, hydrogen or blends. Tests so far have found no evidence that hydrogen changes aluminium properties, but real‑world production trials are now needed. The bigger hurdle, she notes, is supply: many SMEs will not be connected to the core network and must find their own hydrogen sources.

The technology is mature. The challenge now is the supply—many small and medium‑sized companies won't get a direct hook‑up to the hydrogen core network.

Competitive edge underneath the cost

For HMT, climate‑friendly aluminium could become a competitive advantage if the economic framework improves, says Schwarz. The firm already supplies the automotive industry, where demand for low‑carbon materials is rising. But without guaranteed, affordable hydrogen feedstock, the investment case remains uncertain.

The milestones of infrastructure build‑out and on‑the‑ground testing illustrate the gap between national planning and SME reality. While the core network inches toward its 2032 deadline, companies like HMT are pressing ahead with their own transition, often without knowing when or how they will get the hydrogen they need.