East German Hydrogen Congress: IWO Highlights Opportunities for Industrial Value Creation in Eastern Germany

How can eastern Germany economically benefit from the global ramp-up of the hydrogen economy, and what value-creation opportunities arise from the growing market for hydrogen technologies?

This question was explored by the Initiative Wasserstoff Ostdeutschland (IWO) in its presentation at the first East German Hydrogen Congress (OWK) in Dresden. As an initiative partner, the IWO supported the event and contributed its perspective both with a talk in the technical program and with its own exhibitor booth.

Dr. Felix Groba, Chairman of the IWO board, opened the presentation by positioning the initiative as a joint platform of the six eastern German states and outlining eastern Germany’s role in the emerging hydrogen ecosystem. He was followed by Henrike Knopf, IWO’s hydrogen economy advisor, who presented initial findings from a new study on the value-creation and labor market potentials of the hydrogen economy in eastern Germany. The IWO commissioned the WIFOR Institute and the Fraunhofer Institute for Solar Energy Systems ISE to carry out the study.

Electrolyzers produce more than hydrogen

Hydrogen plays a central role in decarbonizing industry, heating and mobility. At the same time, the market ramp-up opens new prospects for eastern Germany as an industrial location.

This is exactly where the study commissioned by the IWO comes in. While previous attention focused primarily on building hydrogen infrastructure, hydrogen production or its use in industry and mobility, the study is the first to systematically examine the value-creation and employment potentials of manufacturing electrolyzers and their supply chains in eastern Germany.

With this, the IWO creates a new industrial-policy perspective on the hydrogen economy. The central question is how eastern Germany can not only use hydrogen but also benefit from producing and exporting the technologies required for it.

The study thus provides, for the first time, a solid basis for assessing the economic opportunities of hydrogen technologies for eastern Germany and for deriving strategic fields of action for policy, industry and research.

Eastern Germany already has a strong ecosystem of electrolyzer manufacturers, specialized suppliers, research institutions and industrial competence centers. The economic opportunity therefore lies not only in producing and using hydrogen, but also in exporting the technologies that enable the global hydrogen ramp-up.

First insights from the value-creation study

As part of the presentation, the IWO revealed selected results from the study for the first time.
The initial analyses indicate significant economic potential for eastern Germany. Depending on the scenario, the gross value added potential in 2045 ranges from several hundred million euros to the billion-euro scale.

In the baseline scenario, the annual gross value added reaches a scale comparable to today’s production of paper and paper products in eastern Germany. In the ambitious scenario, it reaches levels similar to today’s petroleum refining industry.

The results also make clear that the economic potentials extend far beyond the manufacture of electrolyzers. Value is created along complete supply chains, from metal processing and electronic components and electrical equipment to machinery manufacturing and other industrial upstream sectors.

IWO as an exhibitor at the OWK

In addition to the technical presentation, the IWO had its own booth at the congress. The initiative was accompanied by one organization from each of the six member states.
Representatives at the booth included:

• Berlin: H2Berlin
• Brandenburg: Fraunhofer IEG, Cottbus
• Mecklenburg-Vorpommern: Invest in MV
• Sachsen: Saxon Competence Center for Hydrogen (KH2)
• Sachsen-Anhalt: State Energy Agency Saxony-Anhalt (LENA) with the Hydrogen Coordination Office
• Thüringen: THEGA

The joint presence highlighted what sets the IWO apart: the hydrogen economy in eastern Germany is powered by strong regional actors. As a joint platform for the eastern German states, the IWO fosters cross-border exchange and aligns shared interests. This turns regional strengths into shared prospects for eastern Germany as a hydrogen hub.

Study presentation on September 16

The IWO will present the full results of the study “Value-creation and Labor Market Potentials of the Hydrogen Economy in Eastern Germany” on September 16.

Interested parties will gain deeper insight into the economic opportunities that the global growth in the market for hydrogen technologies presents for eastern Germany.

Click here to register.