Tuesday, 22 June 2021
The latest Gas Network Development Plan for 2022-2032 has been produced by the sixteen German Transmission System Operators (TSOs), where the integration of renewable gases, including green hydrogen and biomethane, into the gas infrastructure was highlighted.
The GNDP outlines the development of natural gas and hydrogen demand until 2032, but also provides an outlook in the country until 2050, which is based upon an adjusted scenario taken from the Integrated Energy Transition Study by the German Energy Agency (dena).
The TSO consortium, represented by FNB (Fernleitungsnetzbetreiber) Gas, conducted a hydrogen generation and demand (Wasserstoff Erzeugung und Bedarf - WEB) market survey for the second time and found their market partners reporting 500 hydrogen projects, a significant increase over the previous results two years ago where only 18 such projects were noted (see GNDP 2020).
FNB Gas chairman Thomas Gößmann said: "The enormous number of projects clearly shows that we have to provide a hydrogen infrastructure at an early stage. “This is the only way we can make the energy system fit for the future and achieve Germany's ambitious climate protection goals."
Demand for hydrogen up to 2032 is expected to be 191 TWh annually, growing to 342 TWh in 2040 and 476 TWh in 2050, according the survey participants.
FNB Gas managing director Inga Posch said: "Hydrogen and green gases play a central role in the energy transition. Without them, the decarbonisation of the industry, transport and buildings sectors is simply inconceivable."
The TSO operators suggests that the development of gas demand will be stable to 2032, the target year of the planning period.
The consultation document can be found here (in German), with the consultation period running from 21 June 2021 to 16 July 2021.
The key role of gas transportation and infrastructure in decarbonising is a recurring theme throughout Europe; earlier in June we highlighted a white paper by Distribution System Operator (DSO) consortium GD4S. The paper affirmed the commitment to carbon neutrality in 2050, while also highlighting the current state of DSO infrastructure and improvements required to reach future targets.
Earlier this year, updates to Germany's renewable energy reform were witnessed via the EEG2021. Support for green hydrogen was also included in the act, albeit indirectly via offering relief on surcharges for electricity earmarked for hydrogen production. Our analysis piece contains more details (subscriber only).
Biomethane does receive mention in the report, along with renewable synthetic methane, although the expected growth is relatively low in comparison to hydrogen. This can be attributed to the lack of direct support for biomethane producers as explained on our Germany biomethane country page (Biomethane subscriber only). Nevertheless, an 18% increase in biomethane feed-in volumes is expected between 2019 and 2032, as per Section 5.3.1 of the consultation document.