Germany will include the greenest sources of hydrogen in a bundle of incentives meant to build up the fuel as a low-carbon source of power, based on a draft governent strategy document.
The shift, if endorsed by Chancellor Angela Merkel’s cabinet, could be a hit to natural gas producers, which more and more see hydrogen as part of the way they can adapt to tightening guidelines on greenhouse gas emissions.
Hydrogen burns without producing CO2 and has the energy to reach temperatures of 1,000 degrees Celsius or more necessary for steelmakers and oil refiners. Yet a lot of the fuel currently is derived from natural gas, throwing off carbon emissions in the course. Germany wants to focus its support on green hydrogen, where the gas is made with electricity from renewables (H2G).
Germany is a prime importer of natural gas in Europe, and the industry is drawing up plans on how to adapt the fuel and its systems to a future hydrogen market. Germany’s predominant objective is to produce hydrogen on a large scale, and the pure gas sector needs to maximize its involvement in that work.
Economy and Vitality Ministry spokesperson said the ministry doesn’t comment on drafts that are still in preparation. The document is slated to be discussed by Merkel’s Cabinet on March 18.
Natural gas producers from Equinor ASA to Gazprom PJSC are looking to tap into the potential for hydrogen in the German market.
The decision to remove natural gas from the stimulus package is the result of intense debate among different areas of the government.