Hemmingstedt/Heide – The HySCALE100 hydrogen project at the Heide refinery has definitively failed. News of the project’s cancellation emerged on August 12, 2026. The federal and state governments had allocated nearly 900 million euros for the initiative, which had planned for electrolyzers with a capacity of up to 2.1 gigawatts. The refinery cites a lack of planning certainty, among other factors, as the reason. Consequently, according to the Dithmarschen district, further plans for the production and storage of green hydrogen are being delayed. However, the state is not losing any money, as the earmarked funds were never disbursed. Holcim also stated that its projects in Lägerdorf are continuing.
Hydrogen project aimed to connect West Coast industry
HySCALE100 was intended to produce green hydrogen on an industrial scale. Initially, an electrolysis capacity of 500 megawatts was planned, though the capacity was later set to increase to up to 2.1 gigawatts. Wind power from the region was to supply the necessary electricity. In addition, the consortium aimed to create closer links between the refinery and cement industries.
Image: „Foto Raffinerie Heide GmbH“
Captured CO2 from the Holcim plant in Lägerdorf was also intended to be utilized in the process. Combined with green hydrogen, this was to produce—among other things—methanol. Consequently, the hydrogen project aimed not only to secure energy supplies but also to generate new basic chemical feedstocks. It was precisely this combination that made HySCALE100 one of the major industrial projects on the West Coast.
Germany’s hydrogen ramp-up is progressing slowly
The project’s cancellation comes at a time when Germany’s hydrogen ramp-up is lagging significantly behind political expansion targets. By the end of March 2026, only 181 megawatts of electrolysis capacity were operational nationwide. However, an additional 1,271 megawatts had reached the final investment decision stage or were already under construction. Furthermore, more than 7.2 gigawatts had been announced, albeit without a final investment decision. HySCALE100 alone would thus have represented a project of considerable scale.
The federal government is also currently attempting to accelerate permitting processes and infrastructure development. To this end, the Hydrogen Acceleration Act has been in effect since April. At the same time, the Federal Network Agency explicitly acknowledges a delayed market ramp-up. Investments totaling 24.3 billion euros are envisaged for the planned gas and hydrogen network through 2037. However, the failed hydrogen project near Heide demonstrates that infrastructure alone does not guarantee an investment decision.
Holcim Presses Ahead with Multi-Million-Euro Project in Lägerdorf
Meanwhile, Holcim is moving forward with the Carbon2Business project in Lägerdorf. The company plans to capture and process approximately 1.2 million tonnes of CO2 annually at the site. Plans also include a pipeline spanning roughly 30 kilometers to the Elbe port of Brunsbüttel. From there, the CO2 is intended to be made available to other industries or transported elsewhere for storage. The EU is supporting the project with around 110 million euros.
HySCALE100 is not the first failed attempt for the Heide refinery. The Westküste100 consortium had already halted plans for a 30-megawatt electrolyzer in 2023; at that time, rising investment costs made construction economically unviable. HySCALE100 was subsequently intended to follow on a completely different scale. Now, this project has also been scrapped, causing the West Coast region to lose further time in establishing a large-scale industrial hydrogen economy.
Author: Blackout News
Sources: NDR (12.08.26) – Boyens Medien (12.08.26) – Heide Refinery (07.04.22)