Germany expects hydrogen transition plans to get a green signal by 2032, allowing gas power plants to operate completely on hydrogen fuel between 2035 and 2040

Feb 22, 2024

In order to boost intermittent renewable energy and speed up the transition to low-carbon generation, the German government has come up with a USD 17 billion plan to subsidize gas power plants, which can switch to hydrogen.

Local media quoted the Economy Ministry of Germany as saying that the tender process for four gas plants with a combined capacity of up to 10GW would be held shortly.

The hydrogen transition plans should be finalized by 2032, allowing the gas power plants to operate completely on hydrogen fuel between 2035 and 2040, it added.

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The financial aid to construct and operate hydrogen-ready gas power plants will be for both capital and operational subsidies, a leading news agency reported.

The government will also subsidize power plants operating solely on hydrogen with a capacity of up to 500 MW for energy research purposes.

A new design has also been announced for the electricity market that would include a market-based capacity mechanism. The mechanism is expected to get a green signal by mid-2024 and become operational by 2028.

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It is expected that the gas power plants switching to hydrogen will help the country in exiting coal by 2038.

In July 2023, German multinational energy company RWE AG had revealed plans to build a hydrogen-capable combined-cycle gas turbine (CCGT) power plant with an output of 800 megawatts at its Weisweiler site in Germany by the end of this decade. The project aimed at helping the government to achieve the goal of phasing out coal by 2030.