E.ON’s H2-Bilanz Indicates Promising Developments in German Hydrogen Economy

E.ON’s H2-Bilanz Indicates Promising Developments in German Hydrogen Economy

(IN BRIEF) E.ON, a German energy company, has published its second H2-Bilanz report, which indicates that the country is making progress in developing the hydrogen economy. The report shows that several new projects are underway to increase domestic electrolysis capacity, with planned projects being significantly larger and suitable for industrial-scale hydrogen production. Planned H2 generation capacity has increased to 8.1 GW by 2030, making the German government’s target of 10 GW of installed capacity by 2030 more feasible. However, there has been no tangible progress in developing hydrogen infrastructure, with only 417 km of pure hydrogen lines currently in operation across Germany. The report expects a gap of 43.5 TWh by 2030, based on a hydrogen demand of 66 TWh by that year.

(PRESS RELEASE) ESSEN, 21-Apr-2023 — /EuropaWire/ — E.ON (ETR: EOAN), one of Europe’s largest operators of energy networks and energy infrastructure, announces that Germany is making headway in its efforts to ramp up the hydrogen economy, as demonstrated in E.ON’s second H2-Bilanz. Based on data from the Institute of Energy Economics at the University of Cologne, the report shows that several new projects are underway to increase domestic electrolysis capacity, with planned projects being significantly larger and suitable for industrial-scale hydrogen production.

Planned H2 generation capacity for 2030 has increased from 5.6 GW in July 2022 to 8.1 GW in February 2023, indicating that the German government’s target of 10 GW of installed capacity by 2030 is becoming more feasible. However, most of these projects are yet to receive a final investment decision.

E.ON attributes the increase in planned electrolysis capacity to the energy crisis, which has incentivized plant operators to plan hydrogen projects for diversification of energy sources and to reduce dependency on natural gas.

Despite the progress in planned electrolysis capacity, there has been no tangible progress in developing hydrogen infrastructure, with only 417 km of pure hydrogen lines currently in operation across Germany. The report expects a gap of 43.5 TWh by 2030, based on a hydrogen demand of 66 TWh by that year.

E.ON Board Member Patrick Lammers: “It is gratifying that the planned generation capacity for hydrogen in Germany has increased and the expected import gap has narrowed. However, we must not rely on this initially positive development. The planning must be even more ambitious. Otherwise, unrealized projects or construction delays could quickly thwart the achievement of the 10‑gigawatt target. In addition, we still lack the infrastructure to transport hydrogen to customers. Germany must therefore now pursue its chosen path even more resolutely and consistently to give the nascent German and European hydrogen economy a real chance on the global market.”

Till Mansmann, Green Hydrogen Innovation Officer at the Federal Ministry of Education and Research: “Green hydrogen is the missing piece of the puzzle for the energy transition. That is why we need research and development and are resolute in driving innovation forward. We need openness to technology and pragmatism in order to pave the way for the transformation, especially for industry and medium-sized companies. We have the potential to turn Germany into a hydrogen republic. We must seize this opportunity.”

E.ON has highlighted the urgent need for clarification on the framework conditions for hydrogen networks, as protracted discussions are fueling uncertainty and slowing down the development of hydrogen infrastructure. The energy company emphasized the importance of a reliable legal framework to enable concrete investments to be made in the short term.

The funding framework in Germany and Europe also needs to be developed quickly to give the market ramp-up of hydrogen outside the US a realistic chance. This requires pragmatic funding instruments that are easily accessible and quickly available.

In February, the EU Commission published the long-awaited definition of when hydrogen is considered ‘green’, which is a step forward in providing investors and industry with a necessary basis for developing a hydrogen market in Europe. However, the complex requirements of the definition will become even more stringent from 2029.

About the H2-Bilanz

The H2-Bilanz is published twice a year. The scientific, data-based approach is intended to help ensure that the right adjustments are made for a successful hydrogen ramp-up. The analysis incorporates specific project plans through 2030 and indicators such as green hydrogen generation capacity, import volumes, infrastructure, and costs. The H2-Bilanz data and further information can be found at https://www.eon.com/de/hydrogen/h2-bilanz.

This press release may contain forward-looking statements based on current assumptions and forecasts made by E.ON Group Management and other information currently available to E.ON. Various known and unknown risks, uncertainties, and other factors could lead to material differences between the actual future results, financial situation, development or performance of the company and the estimates given here. E.ON SE does not intend, and does not assume any liability whatsoever, to update these forward-looking statements or to align them to future events or developments.

Media contact:

Spokeswoman
Teresa Marie Jäschke
teresa.jaeschke@eon.com
tel:+49 151 51030303

SOURCE: E.ON SE