German gas industry warns over wavering support for hydrogen ramp-up

EnBW Energie Baden Wuerttemberg AG

18/09/2024 13:24

FRANKFURT, Sept 18 (Reuters) - German gas and water
association DVGW on Wednesday warned that a ramp-up in
low-carbon hydrogen technology could fall behind as participants
feel discouraged by regulatory and political indecision.
    A survey taken from across hydrogen stakeholders in Europe's
biggest economy found that the desired transition from carbon-
emitting natural gas to hydrogen from renewable electricity via
electrolysis is feared to be slowing.
    Speakers at in an online press conference during DVGW's
annual congress said they expected more determined action and
less bureaucracy to dispel doubts about high costs and too
little availability.
    
    WHY ITS IMPORTANT?
    The Berlin government wants national electrolysis capacity
of 10 gigawatts (GW) by 2030 amid a raft of other measures
concerning imports, transport, wholesale markets and storage, to
create affordable new energy, to cut emissions and secure the
long-term competitiveness of German industries.
    Failure to uphold momentum would undermine industries'
confidence, drive up energy costs and prolong the burning of
coal, oil and gas.
    
    KEY QUOTES:
    Matthias Belitz, head of sustainability at chemical industry
association VCI: "Even a good research and innovation
environment is of little use if the applications are not
competitive. Policymakers must urgently improve on this."
    DVGW chairman Gerald Linke: "A clear political commitment
that we cannot go without blue hydrogen (derived from gas with
carbon sequestration) to bridge imports gaps ... would be an
important signal."
    Peter Mueller-Baum, executive at engineering and
machine-building industries' group VDMA: "Our companies ... need
more reliability and planning security for their investment
decisions."
    Roderik Hoemann, head of energy and climate at steel
industry group WV Stahl: "In order to speed applications and
with that, hydrogen demand, in the industry, (these factors)
will be decisive: a coherent support framework, a quick
infrastructure build-up and competitive power and hydrogen
prices."

 (Reporting by Vera Eckert, editing by David Evans)
 ((vera.eckert@thomsonreuters.com; +49 30 2201 33654;))