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.
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.”
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.
“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.”
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).
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 2, 2024 | Development, Fuel cells, Germany, News
Project developer Enertrag has appointed Tobias Bischof-Niemz to the board. From the beginning of April 2024, the hitherto head of new energy solutions will be responsible for the newly created executive division of “Projects International & Technology.” The move will see the number of board members rise from three to four.
Jörg Müller, supervisory board chairman, founder and principal shareholder of the company located in Uckermark in eastern Germany, explained: “We are convinced that Dr. Bischof-Niemz, with his extensive experience and expertise, is the ideal candidate for the board position of Projects International & Technology. His commitment to sustainability and his successful track record in the design and implementation of integrated renewable power plants that combine power, hydrogen and heat production make him a key figure for the further development of Enertrag at a global level.”
The appointment by Enertrag, which now employs over 1,000 staff members, is the company’s response to growing international interest. Prior to joining the board, the 47-year-old was in charge of the organization’s international activities and sector coupling solutions.
by Lewitz | Apr 30, 2024 | Development, Europe, Fuel cells, Germany, News
“Today is a good day for industry location Germany, climate protection and sustainable jobs in our country” – German economy and climate protection minister Robert Habeck was referring to the first bidding process for carbon contracts for difference, which the German government launched in mid-March 2024.
Fig.: Robert Habeck explains his policy
Habeck.jpg – Wolf, bitte die Bildqualität so gut wie möglich optimieren
Source: Screenshot BMWK (German economy ministry) video
“With the carbon contracts for difference, firstly, we are promoting modern, climate-friendly industrial systems of tomorrow. Through this will come new technologies, value chains and infrastructures. This helps, secondly, industry worldwide to switch to climate-friendly production. And thirdly, with the carbon contracts for difference, we are setting new international standards for efficient and low-bureaucracy funding,” he added.
Abroad, this step will be admired with envy, according to Habeck: “Cool what you’re doing in Germany. We want that too.”
Even if some people in Germany don’t like to hear that – because they are all too willing to participate in Habeck bashing – you have to give him credit for getting a lot of things off the ground during his time in office. And if representatives of the chemical industry in particular describe these carbon contracts as a “right step,” not everything can have been wrong.
Opinions on Habeck are currently divided: For some, he is not green enough, too pro-business, too industry-friendly – for others, he is too green, too idealistic, too poetic.
But if you look at what has been kicked off in recent months – in particular due to Habeck’s commitment – it can be seen, even with strong climate protection glasses: Germany has come through the last few winters well and now has several LNG terminals built in record time. Germany is gradually getting the energy policy framework that so many people have been calling for, which provides planning security – be it in the heating or transportation sector, but especially in the industrial sector.
Germany is making efforts to keep energy-intensive companies in the steel, glass, cement and chemical industries in particular in the country and to accommodate them. Germany is also forging international partnerships for the import of hydrogen and the transfer of technological expertise (see H2-international May 2024: p. 12 – Norway as partner country of Hannover Messe).
In addition, the IPCEI projects are finally gaining momentum (see p. 28), and even the update to the 37th ordinance on implementation of German emissions reduction law (37. Verordnung zur Durchführung des Bundes-Immissionsschutzgesetzes) was passed by the German parliament on March 14, 2024.
These and many other measures have led, among other things, to a 10.1 percent reduction in climate emissions in 2023 compared to 2022, which corresponds to the largest decrease in CO2 equivalents since 1990.
Yes, this decline is certainly due in part to Germany’s currently reduced economic strength. So? It is quite clear that a transformative process in the energy sector means that production cannot continue at the same level as before. And exactly this is wanted, because we can no longer afford to waste as much energy and as many resources as before.
A moderate decline in economic power is, in my opinion, very manageable for the time being and should be viewed positively, as this is precisely what will break up outdated structures and ensure the country’s future viability. It will now be a matter of keeping the right degree in sight, to find a balance between pressure to act and reasonableness.
This applies not only to the government, but also to the people, who also possess a great deal of responsibility – be it the choice of the next car or the next heating system. Less grumbling and more sustainable action can sometimes work wonders.
