German econ minister says hydrogen key part of future energy system
Hydrogen is set to be a key energy source in the future and indispensable in order for the German and other economies to become climate neutral, said German economy minister Peter Altmaier .
The economy ministry presented . As hydrogen presented 鈥渆normous industry policy potential鈥�, it is important that with the report the government now 鈥渟ends the signal that Germany will become the global number one in hydrogen technology鈥�, said the minister.
Altmaier included both renewable-power-based 鈥済reen hydrogen鈥� and 鈥渂lue hydrogen鈥�, which is won from natural gas by CO2 sequestration. This, however, then has to be stored. The debate on CCS (carbon capture and storage) has long been considered finished in Germany due to widespread opposition against the procedure in which carbon dioxide is compressed in underground storages. 鈥淭he goal of greenhouse gas neutrality means that we will have to have this discussion within the coming years,鈥� said Altmaier in Berlin.
His comments echoed remarks made by Chancellor Angela Merkel earlier this year. She had put CCS back on the table, saying the controversial technology was crucial for Germany to reach climate neutrality by mid-century.
鈥淣atural gas will remain important element for many years鈥�
The report follows a several-months-long dialogue with gas industry representatives. The dialogue 鈥渟hows that natural gas will remain an important element of our energy supply system for many years鈥�, said Altmaier.
In light of the planned coal and nuclear exit, the future role of gas in Germany's energy supply has become a crucial topic of discussion as it is less CO鈧�-intensive than oil and coal when burned. Natural gas currently covers almost a quarter of Germany鈥檚 primary energy consumption, mostly used for heating and cooling in households and public buildings and in industrial process heating systems.
However, to reach ambitious long-term climate targets, it would have to be gradually substituted with CO2-free or CO2-neutral gases, such as hydrogen. This can be used to store energy, as an energy source for sector-coupling, and in the transport sector, e.g. in fuel cell cars, or to make synthetic fuels, said Altmaier. The government is currently working on a hydrogen strategy and plans to present it before the end of 2019.
With the gas industry dialogue, the government 鈥渉as underlined the importance of the energy source gas for the energy transition鈥�, said local utility association鈥檚 managing director Katherina Reiche in . She called the gas grid the 鈥渃entral infrastructure of sector coupling鈥�, as it was both a place of storage and distribution of green gases.
Germany notifies European Commission of plans for first large-scale European battery cell project
At the same press conference, Altmaier also announced Germany had formally notified the European Commission of its plans for the first large-scale European battery cell production project, involving companies such as carmaker PSA with subsidiary Opel. The Commission has to approve the project under state aid regulations. The European Union allows state aid in certain conditions under its rules for Important Projects of Common European Interest (IPCEI).
Germany鈥檚 economy and energy minister Peter Altmaier last year set the target of covering 30 percent of global battery cell demand with production 鈥渋n Germany and Europe鈥� by 2030 to make the continent more independent from Asian imports.
鈥淲e expect that we will get the Commission鈥檚 approval before the year is out,鈥� said Altmaier. Only then would the economy ministry announce all companies involved and the precise size of the project. 鈥淲e can expect that at the latest by 2024 battery cells will be produced on an industrial scale also in Germany,鈥� said Altmaier. He added that the government would notify the Commission about a second project 鈥渨ith more German companies involved鈥� before the end of the year.
