Germany’s Green Hydrogen Revolution: VNG and HyCC Announce 500MW GreenRoot Project

In a significant step toward Germany’s ambitious hydrogen goals, gas company VNG and hydrogen project developer HyCC have unveiled plans for a 500MW green hydrogen facility near the Piesteritz Chemical Park in Saxony-Anhalt. Dubbed “GreenRoot,” the project aims to become operational by 2029, making it one of Germany's largest hydrogen initiatives to date.

GreenRoot: A Milestone in Germany’s Green Hydrogen Expansion

The GreenRoot facility, if fully operational by 2029, would boast nearly five times the green hydrogen production capacity currently installed in Germany. This project is aligned with the nation’s goal of achieving 10GW of electrolyser capacity by 2030 to meet its expected hydrogen demand of 95–130 TWh.

Situated near SKW Piesteritz, Germany’s largest ammonia and urea producer, the project is ideally located to support industrial decarbonization. Although a formal offtake agreement has yet to be signed, SKW Piesteritz has expressed interest in leveraging green hydrogen for its operations.

Hydrogen Infrastructure: Central to GreenRoot’s Success

GreenRoot’s strategic location enables direct integration into Germany’s core hydrogen pipeline network, set to partially commence operations in 2025 and be fully operational by 2032. This infrastructure would connect the project to other industrial hubs, particularly within the “Central Chemical Triangle” across Saxony-Anhalt and Saxony, bolstering Germany’s industrial transition toward sustainable practices.

Challenges and Regulatory Needs

While the project promises substantial benefits, challenges persist. High power prices and uncertainties surrounding hydrogen offtake agreements have historically slowed Germany’s green hydrogen projects.

VNG’s Managing Director, Konstantin von Oldenburg, emphasized the need for regulatory support. “We advocate for the EU Commission to make criteria for defining green hydrogen more flexible and to deregulate them,” he stated. Von Oldenburg also called for pragmatic enhancements to Germany’s climate protection contracts, which are critical to supporting industries in adopting low-emission technologies.