Fraunhofer Institute for Solar Energy Systems ISEWhat value creation and labour market potential does the hydrogen economy offer for eastern Germany? A new study by the Initiative for Hydrogen in Eastern Germany (IWO) answers this question. In collaboration with the WifOR Institute and Fraunhofer ISE, the economic opportunities along the electrolysis value chain – from component manufacturing to the labour market – are being analysed using scenario-based approaches up to 2045. The results provide an evidence-based foundation for industrial, structural and skills policy in the region.
Value Creation and Labour Market Potential of the Hydrogen Economy in Eastern Germany
H2 Eastern Germany
Layer by layer: membranes, bipolar plates and end plates are assembled into electrolyzer stacks.
Initial Situation
The development of an electricity-based hydrogen economy is regarded as a key component of the energy transition. Numerous studies analyse global demand potential and the ramp-up of electrolysis capacity – yet reliable data on the specific effects on value creation and the labour market at the level of individual technologies and components has so far been largely lacking. For Eastern Germany – with its established industrial structures, energy-intensive locations and strong research landscape – there is therefore a particular need: without a sound, regionally differentiated data set, decisions on industrial, labour market and structural policy cannot be made on an evidence-based basis. This is precisely where the present study comes in.
Objective
The objective of the study is to systematically quantify, using scenarios, the value-added and labour market potential of the electricity-based hydrogen economy in eastern Germany up to 2045. The focus is on electrolysis technologies, their main components and value chains. The study aims to provide a comprehensive picture of the economic and employment opportunities – from component manufacturing to occupational and skills structures. In addition, resilience risks along industrial supply chains and potential dependencies on critical raw materials and intermediate products will be assessed.
Approach
Fraunhofer ISE is responsible for the technological foundation: a systematic bottom-up analysis of electrolysis technologies (AEL, PEM, AEM, HT), including key components, value chains and an inventory of East German manufacturers and suppliers. Building on this, ISE develops consistent market scenarios up to 2045. The WifOR Institute translates these results into an economic input-output model and quantifies scenario-based value-added, employment and skills effects for eastern Germany. Finally, both partners jointly analyse the resilience of industrial supply chains.
Funding
The “H2 Eastern Germany” project is funded by the Initiative for Hydrogen in Eastern Germany (IWO).
