German industry, policymakers urge patience on hydrogen conversion
ESSEN, Germany, June 12 (Reuters) -Investor caution about hydrogen as a future source of energy to reduce emissions of greenhouse gases did not suggest slowing resolve to phase out fossil fuels, German industry executives and policymakers said on Wednesday, pleading for patience.
They told a conference organised by the Handelsblatt business newspaper that regulatory support for new value chains would bring about a large-scale switch to renewably derived hydrogen energy early next decade.
WHY DOES IT MATTER?
Germany wants national electrolysis capacity of 10 gigawatts (GW) by 2030. Last month, it approved an acceleration bill to help decarbonise the EU's lead industry, whose manufacturers are key to future hydrogen consumption.
Critics say that final investment decisions on only 300 MW of projects, according to data presented by utility E.ON EONGn.DE, indicate of possible failure, while reliance on future bulk imports is nebulous.
If Germany does not manage the move to hydrogen, it will weaken the entire bloc's chances of adopting it and competing successfully with the United States and China.
KEY QUOTES
- Member of parliament Till Mansmann, an adviser on green hydrogen innovation to the federal ministry of education and research: "Green hydrogen will reach German consumers early next decade. We must remain brave and must not suffocate our companies with over-regulation."
- EnBW EBKG.DE chief operating officer Dirk Guesewell: "The overall value chain needs organising and synchronising. We don't need hype, we need time."
- Cetin Nazikkol, chief strategy officer at Thyssenkrupp Decarbon Technologies: "It is not unusual that projects see delays. We need more speed, but there is no fundamental question behind it."
- Kerstin Andreae, head of utility industry association BDEW: "We need more patience. We are building up something big. What companies most need is planning security over the terms of future governments."
Reporting by Vera Eckert; Editing by Clarence Fernandez
Related Assets
Latest News
Disclaimer: The XM Group entities provide execution-only service and access to our Online Trading Facility, permitting a person to view and/or use the content available on or via the website, is not intended to change or expand on this, nor does it change or expand on this. Such access and use are always subject to: (i) Terms and Conditions; (ii) Risk Warnings; and (iii) Full Disclaimer. Such content is therefore provided as no more than general information. Particularly, please be aware that the contents of our Online Trading Facility are neither a solicitation, nor an offer to enter any transactions on the financial markets. Trading on any financial market involves a significant level of risk to your capital.
All material published on our Online Trading Facility is intended for educational/informational purposes only, and does not contain – nor should it be considered as containing – financial, investment tax or trading advice and recommendations; or a record of our trading prices; or an offer of, or solicitation for, a transaction in any financial instruments; or unsolicited financial promotions to you.
Any third-party content, as well as content prepared by XM, such as: opinions, news, research, analyses, prices and other information or links to third-party sites contained on this website are provided on an “as-is” basis, as general market commentary, and do not constitute investment advice. To the extent that any content is construed as investment research, you must note and accept that the content was not intended to and has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such, it would be considered as marketing communication under the relevant laws and regulations. Please ensure that you have read and understood our Notification on Non-Independent Investment. Research and Risk Warning concerning the foregoing information, which can be accessed here.
