The Impact of Skill Shortages on the Hydrogen Economy's Growth

The transition to a hydrogen economy is a critical phase in the broader energy transition. For sectors that cannot be electrified, hydrogen, produced from renewable energy sources, is essential. The initial steps have begun, with the previous government approving the establishment of a core network to facilitate the transport of hydrogen across the country--from hydrogen production sites in the North to industrial and transportation hubs in the West and South.

However, a significant challenge looms: a shortage of skilled labor. According to a recent study by the Institute of the German Economy (IW), nearly 50,000 qualified professionals are currently lacking across key sectors related to this transition. The need for skilled workers is urgent, as the development of facilities to generate hydrogen through electrolysis is just the beginning.

The hydrogen economy requires extensive infrastructure, including pipelines similar to those used for natural gas, which will transport hydrogen over long distances. Key occupations identified in the study include specialists in electrical construction, electrical engineering, and mechanical engineering--fields where many positions remain unfilled.

The situation is further complicated by the need to develop distribution networks that will supply industrial consumers. The demand for skilled labor in infrastructure development is expected to remain high over the long term. Additionally, as hydrogen imports and its derivatives, such as ammonia, increase in the coming years, other transportation sectors, including maritime transport, will also be affected.

The chemical industry is expected to play a pivotal role in the hydrogen economy, not only as a producer but also as a consumer. The IW study highlights a growing need for professionals in the construction and maintenance of new facilities, including electricians, mechatronics experts, and IT specialists. Other critical sectors include steelmaking, which is shifting from coke to direct reduction using hydrogen, as well as shipping and aviation, which require synthetic fuels derived from green hydrogen to achieve climate neutrality.

To address these challenges, it is essential for the next government to reaffirm its commitment to the energy transition. The IW authors emphasize that in some relevant job categories, as many as 80% of open positions cannot currently be filled by qualified unemployed individuals. The hydrogen transition is likely to exacerbate these shortages. Alarmingly, around 18,000 training positions in affected sectors remain unfilled.

Companies are urged to improve their recruitment strategies to ensure better alignment with labor market needs, particularly through targeted outreach for in-demand positions. Additionally, facilitating career transitions, tapping into the potential of women, international talent, and older workers, and providing more part-time job opportunities are crucial steps.

For companies to engage meaningfully in the hydrogen economy, the next government must build on previous progress and vigorously address urgent issues such as the construction of electrolysis facilities and closing the economic gap between fossil fuels and green hydrogen.