The head of Open Grid Europe (OGE), the largest gas pipeline operator, has called for Germany to quickly pass revisions to its hydrogen law to enable investments in gas transport infrastructure by the end of the decade.
This is in line with Germany’s plan to produce, import and market clean hydrogen from renewable sources such as wind and solar power as a future energy source, and gas carriers need to be ready for this transition.
Joerg Bergmann, OGE chief told Reuters in an interview.
I would like the revision of the hydrogen strategy update to be completed in the first quarter of 2023.
“Investment decisions have to be taken now, ideally by the summer, because adjusting and expanding pipelines to carry hydrogen needs between around three and six years,” he said on the sidelines of the Handelsblatt Energy Summit 2023.
Economy Minister Robert Habeck stated at the conference that hydrogen-compatible gas-fired power plants must be included in Germany’s climate strategy, as a replacement for coal and nuclear energy.
The country aims to reach a capacity of 10 gigawatts for green hydrogen production by 2030, in addition to imports. The head of OGE, which manages 12,000 kilometers of high-pressure pipelines, warned that failure to act promptly could result in loss of industries that rely on stable energy sources. Bergmann also emphasized the need for the EU to establish regulations for separating gas networks by the summer.
Some activists are advocating for the separation of hydrogen and gas grid operations by the same company, in order to limit the influence of fossil fuel companies in the future.
A group of German gas pipeline operators estimated that 8 billion euros ($8.69 billion) would be needed to incorporate hydrogen into their investment plans for 2022-2032, which are financed through network usage fees.
These additional funds for OGE’s plans will be covered by its shareholders such as Macquarie (24%), British Columbia Investment Management (32%), Abu Dhabi Investment Authority (25%), and Munich Re (19%).
