Germany invites tenders for hydrogen-ready power plants

• a month ago (2024-07-09)
• David Flin

Europe 1076 Gas 384 Hydrogen 58

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Germany plans to tender for 12.5 GW of hydrogen-ready gas-fired power plants by the end of 2024, in response to pressure to accelerate the energy transition.

The Ministry of the Economy has specified that the tenders will include two phases for the construction of new hydrogen-ready gas-fired power plants, each phase for a capacity of 5 GW. In addition, 2 GW will be allocated to retrofit older gas-fired power plants for hydrogen use, 0.5 GW for long-term storage, and 0.5 GW for fully hydrogen-powered plants.

To encourage the transition, Germany will subsidize the investment costs and operational cost differences between hydrogen and natural gas, guaranteeing compensation for 800 hours of full charging per year once the conversion to hydrogen has been completed. This initiative aims to reduce costs and make the use of hydrogen economically viable for energy producers.

The plants will be built mainly in southern Germany, where much of the country’s industrial complex is located.