Based on different current long-term energy scenarios the paper discusses the future perspectives of hydrogen in the German energy system as a representative example for the development of sustainable energy systems. The scenario analysis offers varying outlines of the future energy system that determine the possible role of hydrogen. The paper discusses the possibilities of expanding the share of renewable energy and the resulting prospects for establishing clean hydrogen production from renewable energy sources. Emphasis is given to the question,, of in ecologically efficient allocation of limited renewable energy resources that can only be assessed from a systems analysis perspective. Findings from recent studies for Germany reveal a strong competition between the direct input into the electricity system and an indirect use as fuel in the transport sector. Moreover. the analysis underlines the paramount importance of reducing energy demand as the inevitable prerequisite for any renewable energy system, (c) 2004 Elsevier Ltd. All rights reserved.