(Berlin) - The Federal Ministry for Economic Affairs and Climate Protection (BMWK) and the European Commission have held discussions about the framework conditions for future hydrogen power plants. Progress has been made on the issue of funding three new projects.
The results of the discussions formed “the framework for the national power plant strategy,” according to the BMWK. “Specifically, we want to tender 8,8 gigawatts of new power plants that will be operated with hydrogen from the start,” says Economics Minister Habeck; also 15 gigawatts of hydrogen power plants that could temporarily run on natural gas until they are connected to the hydrogen network by 2035 at the latest. In a first step, ten gigawatts would be put out to tender by 2026 and, after an evaluation, a further five gigawatts, according to the plan. The three projects:
- Hydrogen Sprinter Power Plants: The concept for generating electricity from renewable hydrogen is aimed at locations where there is a connection to an infrastructure such as a large hydrogen or ammonia storage facility, to a regional network, a hydrogen cluster or an import option for hydrogen or ammonia. The subject of the funding here is the generation of electricity from renewable hydrogen as soon as the power plant is put into operation. A total tender volume of 2024 gigawatts is planned for the years 2028 to 4,4. The program is also open to converting existing natural gas-based power plants.
- Hydrogen hybrid power plants: The entire hydrogen chain is to be developed and tested, from variable electricity generation from renewable energies to electrolysis, storage and reconversion of the hydrogen produced. The overall system combines wind and solar power systems with a hydrogen-based electricity storage system (electrolyzer, local hydrogen storage and hydrogen power plant), “which creates controllable renewable electricity generation based on renewable hydrogen”. It is suitable for locations where infrastructure for hydroelectric power plants only became available “comparatively late”. A tender volume of 4,4 gigawatts is also planned for this (based on the output of the hydrogen power plants).
- Convertible power plants with an obligation to switch to hydrogen by 2035 (H2-Ready): These are new or existing power plants that will initially be operated with natural gas for a limited period of time and must be converted to operation with hydrogen by 2035 at the latest. This measure is intended to address up to 15 gigawatts of power plant capacity. Of these, a total of ten gigawatts would be put out to tender between 2024 and 2026, and six gigawatts would be reserved for new power plants. After an evaluation phase, the remaining five gigawatts could then be put out to tender after 2026.
The talks between the BMWK and the EU were intended to clarify “initial questions regarding the formal assessment of state aid” at an early stage. The result does not mean “that the intended measures have already been approved by the European Commission under state aid law”. However, “the guardrails within which the state funding programs must operate” have now been defined in order to comply with European state aid and energy law.
The next step is a consultation phase that begins at the end of the summer. Affected associations as well as manufacturers and operators of power plants, infrastructure and electrolyzers could comment “on the effects on competition and on the necessity, eligibility and appropriateness of the measures”.
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RWE AG wants to build a hydrogen-capable gas and steam power plant at the site of the Weisweiler coal-fired power plant in North Rhine-Westphalia, which will be taken off the grid in 2029. The managing director of RWE Generation SE, Roger Miesen, recently said, as reported, politicians called for “swift decisions” so that the group could make a final investment decision. He calls for “suitable framework conditions” to enable “economic operation”. The latest talks between the BMWK and the EU could now bring the fulfillment of the desires of Germany's second largest energy company using tax money within reach. The half-year figures for 2023 that have just been published are unlikely to change this: The operating cash flow (EBITDA) at RWE Group level rose from 2,1 billion to 4,5 billion euros compared to the same period last year, and RWE expects up to 7,7 billion for the full year Euro. The net result has almost tripled to 2,6 billion euros (previous year 950 million euros; forecast up to 3,8 billion euros). © RWE
