On June 10, 2020, the German government put the topic of hydrogen in the spotlight for the first time and in a serious way with its National Hydrogen Strategy. After almost exactly 1,000 days, Zukunft Gas and the German Hydrogen and Fuel Cell Association are taking stock together:
"The start into the hydrogen future has been successful. Renewable and decarbonized gases are firmly anchored in the energy transition. What we need now is more pragmatism and speed," the two chairmen Dr. Timm Kehler and Werner Diwald jointly declared in Berlin.
One day before the National Hydrogen Strategy is 1,000 days old, success stories were the focus of the joint event. The work of the H2Global Foundation, which was established to promote the ramp-up of the hydrogen market worldwide, was acknowledged by both associations.
Response to the Inflation Reduction Act (IRA)
Efficient dovetailing of support instruments across the supply chain can provide an effective European response to the U.S. Inflation Reduction Act (IRA). This is the opinion of Timm Kehler, board member at Zukunft Gas.
"Especially in view of the IRA and our competitiveness on the global market, we must not stop now at mere declarations of intent. We need much more pragmatism to produce hydrogen instead of directives. Clear proofs of origin are now needed quickly for an internationally viable hydrogen market."
Hydrogen will not only completely change our energy system, but also shift the balance of power in global energy markets. Germany must proactively seize this opportunity, he said.
"The update of the National Hydrogen Strategy must do justice to the dimension of a future green hydrogen market economy and specify concrete measures for an investment-secure market ramp-up of the hydrogen energy economy in all sectors," says Werner Diwald, chairman of the German Hydrogen and Fuel Cell Association.
In order to be able to use hydrogen as an energy carrier on a broad scale in the future, it is essential to build up an infrastructure, both here and in the future export countries.
"In this respect, our starting position is very good: with the existing gas infrastructure, there is already a viable foundation," emphasizes Kehler.
In the European Hydrogen Bacbone initiative, European energy infrastructure operators have developed their vision for an approximately 53,000-kilometer-long hydrogen network infrastructure in 28 European countries, which will largely consist of repurposed natural gas pipelines.
Skepticism about state-owned hydrogen network company
"We welcome that the BMWK wants to implement the European Hydrogen Backbone and create hydrogen import terminals. The industry is also ready when it comes to terminals. For example, not only land-based LNG terminals are being created in Wilhelmshaven and Stade, but Energy Hubs that can be used to import decarbonized and renewable gases after the end of natural gas use," Kehler added.
The two associations, on the other hand, are critical of the idea of establishing a new state-owned hydrogen grid company. For such a task, they say, the established private-sector players are much more efficiently and powerfully positioned and can act more quickly.
"The distribution network, which today supplies 20 million households, but also 1.8 million commercial and industrial customers, must be integrated into a future system, and this system should grow together with the power grids to form an integrated energy system. This requires a great deal of commitment, pioneering spirit and courage. These are qualities that the gas industry has to offer. It is ready to rethink gases. What we need now is as much speed and pragmatism as possible, and as little administrative structure as necessary," both chairmen emphasized.
