by Hydrogeit | May 15, 2024 | Development, Europe, Germany, News
Thomas Hüwener will become the new management spokesman for transmission system operator OGE from July 1, 2024. The 52-year-old, who has held various positions at the company since 2001, was appointed by the supervisory board to succeed Jörg Bergmann, who is taking planned retirement after approximately 30 years in diverse roles at OGE – more than 15 years of which was spent as a member of the executive board.
Lincoln Hillier Webb, chairman of OGE’s supervisory board, commented: “With Thomas Hüwener, we have not only been able to attract an outstanding candidate for the position of spokesman – we are also demonstrating that we want to continue on the path of transformation we have embarked on.” Speaking on the subject of his new post, Hüwener said: “We have many decisive years ahead of us – both in the development of the hydrogen network and in the establishment of a CO2 transportation system. Together with the OGE team, I look forward to tackling these challenges and productively shaping the future of the company.”
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by Hydrogeit | May 15, 2024 | Development, Germany, News, Policy
German government adopts power plant strategy
It took a long time, but now it’s here – the power plant strategy (Kraftwerkstrategie) for Germany. It should actually have been available at the beginning of 2023, but the political agreement process was difficult and correspondingly time-consuming. On February 5, 2024, the strategy was presented, but it still has to be coordinated with Brussels and publicized. It is to create the framework for new investments in modern, highly flexible and climate-friendly hydrogen-capable power plants. Details on the future electricity market design will then be available in the summer – if the Ampel coalition leading the government reaches an agreement on that.
The aim of the power plant strategy is to ensure that the supply of electricity is “guaranteed climate-friendly, even in times with little sun and wind,” so that it can “make an important contribution to system stability.” A basic prerequisite for this, however, is that the expansion of renewable energies and the power grid is promoted so that decarbonization can advance.
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To achieve this, German chancellor Olaf Scholz, economy minister Robert Habeck and finance minister Christian Lindner agreed on some essential elements. For example, an early expansion of power plants is to be encouraged. The tenders as part of the power plant strategy will be designed in such a way that the new power plants are fully integrated into the future capacity mechanism.
“The power plant strategy describes how we will bring new types of power plants that are hydrogen-capable onto the market.”
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Robert Habeck, German minister for economy and climate protection
For it, soon new capacities (natural gas-fired power plants that are H2-ready and are located at system-serving sites) of 10 GW total will be put out to tender. Habeck had previously targeted more than twice as much. By 2040 at the latest, these are to be completely converted from natural gas to hydrogen. Power plants that run exclusively on hydrogen will be funded up to 500 MW as part of energy research. The funding required for this is to come from the climate and transformation fund (Klima- und Transformationsfonds). In addition, work on a future electricity market design is to be further advanced.
Existing barriers to the construction and operation of electrolyzers are to be removed. In addition, every opportunity should be taken to accelerate especially the expansion of electrolyzers that serve the German energy system. In addition, double charges in the form of levies and fees that are currently incurred when operating electrolyzers are to be eliminated. Specifically, it says (translated): “The use of surplus electricity shall be made possible without restriction; all existing regulatory hurdles shall be removed as far as possible.”
Criticism from the DWV
Initial reactions from the energy sector were generally positive. The DWV (German hydrogen and fuel cell association) expressly welcomed the fact that the German government has now agreed on key elements of a power plant strategy, as time is running out. At the same time, however, the chairman Werner Diwald criticized: “In the analysis of the BMWK (German economy ministry), it says that by 2030, over 23 GW of gas-fired power plants that can run on hydrogen are required to secure the electricity supply. The question therefore arises as to why in the key points agreement on the power plant strategy only a total of 10.5 GW of power plant capacity is to be put out to tender.” The DWV calls for the tendering of the long-announced 8.8 GW in the form of hybrid and “sprinter” power plants (generate electricity from renewable hydrogen as soon as the plant is in operation) as well as a further 15 GW of future-proof H2 power plant capacity to be put out to tender over the next three years. For the DVGW (German association for gas and water standards) as well, the capacity now targeted is “at best a first step.”
“By 2030, 80 percent of the electricity consumed in Germany is to come from renewable energies.”
BMWK
by Hydrogeit | May 15, 2024 | Europe, Germany, hydrogen development, international, News, Policy
3rd funding wave for H2 infrastructure measures
The decision has finally come. In mid-February 2024, the European Commission approved 24 German IPCEI projects aka Important Projects of Common European Interest. Within the framework of IPCEI Hydrogen, funding is granted to large-scale projects across the entire hydrogen value chain – from H2 production and transportation to storage infrastructure and industrial deployment.
These projects are approved by the European Commission in several “waves.” In the current third wave, attention was turned to infrastructure schemes involving a total of seven EU member states (Germany, France, Italy, the Netherlands, Poland, Portugal and Slovakia). Across all projects, the aim is to build almost 3,000 kilometers (1,900 miles) of H2 pipelines, more than 3.2 gigawatts of H2 production capacity in addition to approximately 370 gigawatt-hours of H2 storage capacity.
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“While the renewable hydrogen supply chain in Europe is still in a nascent phase, Hy2Infra will deploy the initial building blocks of an integrated and open renewable hydrogen network. This IPCEI will establish the first regional infrastructure clusters in several Member States and prepare the ground for future interconnections across Europe, in line with the European Hydrogen Strategy. This will support the market ramp-up of renewable hydrogen supply and take us steps closer to making Europe the first climate-neutral continent by 2050.”
Vice President of the European Commission Margrethe Vestager, responsible for competition policy
“For a successful roll-out of renewable and low-carbon hydrogen, all pieces of the puzzle need to come together. With this new Important Project of Common European Interest, 32 companies, including 5 SMEs, will invest in hydrogen infrastructure, for a total of more than 12 billion euro of private and public investment, to match supply and demand of hydrogen. It provides industries with more options to decarbonise their activities while boosting their competitiveness and creating jobs.”
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EU Commissioner Thierry Breton
“I’m pleased that the wait for European funding approval has come to an end. It means we have made an important step toward realizing our hydrogen project. I now hope that we will soon receive funding approval from the German government so that we have a good basis for making the final investment decision within our committees.”
EWE Chief Executive Officer Stefan Dohler
It is expected that member states will provide up to EUR 6.9 billion in public funding which will then unlock EUR 5.4 billion in private investment. Involved in the 33 projects is a total of 32 companies, with small- and medium-sized businesses among them. Thus the IPCEI Hy2Infra should go some way in “helping to achieve the objectives of the European Green Deal and the REPowerEU Plan,” according to Brussels.
Most of the participating companies have been waiting a long time for this go-ahead to be given, which will enable them to finally kick off their projects. It is anticipated that several large electrolyzers will be commissioned between 2026 and 2028 and a number of pipelines will be brought into service between 2027 and 2029.
Fig. 2: Hydrogenious LOHC Technologies plans, as part of its Green Hydrogen@Blue Danube project, to trial benzyltoluene as a hydrogen carrier for the purpose of ensuring safe and efficient transportation of green hydrogen for supplying industrial off-takers in the Danube region
Hydrogenious_LOHC_ReleasePLANT_Rendering, Source: Hydrogenious,
IPCEI
The IPCEI Hy2Tech, which focuses on the development of hydrogen technologies for end consumers, was approved on July 15, 2022. This was followed in the second wave on Sept. 21, 2022, by the IPCEI Hy2Use which targets hydrogen applications in the industrial sector.
“IPCEI Hy2Infra contributes to a common objective by supporting the deployment of hydrogen infrastructure important for achieving the objectives of key EU policy initiatives such as the European Green Deal, the REPowerEU Plan and the EU Hydrogen Strategy.
All 33 projects included in the IPCEI are highly ambitious, as they aim at developing infrastructure that go [sic] beyond what the market currently offers. They will lay the first building blocks for an integrated and open hydrogen network, accessible on non-discriminatory terms, and enable the market ramp-up of renewable hydrogen supply in Europe. This will allow for the decarbonisation of economic sectors that depend on hydrogen to reduce their carbon emissions.
Aid to individual companies is limited to what is necessary and proportionate, and does not unduly distort competition.”
European Commission
by Hydrogeit | May 15, 2024 | Germany, News
Apex, headquartered in Rostock, Germany, is continuing to make big strides forward in the hydrogen market. On Feb. 8, 2024, the developer and operator of green hydrogen production plants announced it would henceforth be joining forces with Exceet Group under the brand H2APEX.
The merger represents another important step for the listed parent company as it focuses its attention on hydrogen. The rebranding and change of name in the business register were approved at the stockholders’ meeting, after which Apex was able to appoint Axel Funke as chief technology officer at the start of the year (see H2-international, February 2024).
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Peter Rößner, CEO of the H2APEX Group, explained: “As H2APEX, we will now have a clear and consistent brand presence within the market for green hydrogen production plants that is synonymous high-level planning expertise, tried-and-tested technical solutions and extensive experience in the creation of large-scale plants in the industrial and energy sectors.”
by Hydrogeit | May 6, 2024 | Development, Germany, international, News
Project realization despite Exytron bankruptcy
Originally at the end of 2023, an “emissions-free taxonomy natural gas power plant” was to go into operation in Lübesse, a municipality in Mecklenburg-Vorpommern. But as with so many projects, there have been delays: One project partner went bankrupt, and not least the price increases of recent years have necessitated rescheduling. But despite all the adversity, the responsible parties have stuck with it and are now targeting 2025/2026 for the start of production.
The official start of construction for the energy conversion plant south of Schwerin took place, after four years of preparation, in March 2022. In the presence of Mecklenburg-Vorpommern’s economy minister Reinhard Meyer, the start signal, a symbolic tease, was given for this sector coupling project, in whose framework climate-neutral synthetic fuels (e-fuels) were to be produced.
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Contrary to earlier plans, however, a natural gas-fired CHP plant will no longer be built. The methane produced is to be used for the production of renewable liquefied natural gas (rLNG) for the transportation sector. Alternatively, feeding into the existing natural gas grid is also conceivable. In addition, this project now focuses on supplying the residential areas of Lübesse, including the commercial areas, with local heating.
At the time, Exytron GmbH was still on board. The technology company from Rostock had to file for insolvency at the end of August 2022, however. The managing director Klaus Schirmer tried to save what could be saved, but in the autumn of 2022, it became clear that liquidation was unavoidable, so several employees then took on other work.
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As a result of the insolvency, the project was delayed by about a year, after negotiations with construction companies, suppliers and banks had already led to scheduling problems due to price increases and delivery bottlenecks. In the meantime, however, after a public tender in autumn 2023, an internationally active system manufacturer was able to be gained. Heiko Teichmann, managing director of Lübesse Energie GmbH, showed corresponding confidence to H2-international: “The energy conversion plant will be manufactured, installed and operational in the timeframe of 2024/2025, so starting the end of 2025/beginning of 2026, the putting into operation and subsequently a continuous supply of potential distributors with rLNG and a feeding of heat into the still to be built local heating grid will be possible.”
Power-to-X systems in business park
Concretely planned is, on an area of around 20,000 square meters (215,280 sq ft) in the business park of Lübesse, construction of a hydrogen and methane production plant that will have an electrolysis capacity of up to 8 MW in the first expansion phase. It is to serve in part for the storage and utilization of green electricity from local wind turbines, for which the 20-year EEG feed-in subsidy has expired, and for a clean and affordable energy supply for the village as well as an adjacent commercial area. Additional green electricity will come from regional and supraregional wind power generation and photovoltaic systems. The economy ministry of Mecklenburg-Vorpommern has assured support of the project with 15 million euros. The wind farm developer Naturwind from Schwerin as well as VR-Bank Nord eG from Flensburg are still in.
Bernd Jeske, managing director of Lübesse Energie GmbH, said: “The decentralized approach means that energy is consumed there where it is generated. In addition, the project combines the clean electricity transition with the transport and heating transition and shows how sector coupling can be driven forward.”
On further planning, Teichmann stated: “The unavoidable waste heat generated in connection with the exothermic processes of electrolysis and methanation will be fed into a new local heating network, which is to supply both the residential buildings and the business park in Lübesse with heating energy.”
Author: Sven Geitmann