The German government approved a plan to provide subsidies to gas power plants capable of converting to hydrogen. The initiative, totalling $17 billion in subsidies, aims to complement intermittent renewable energy sources and accelerate the shift towards low-carbon energy generation.
The decision comes after pressure from the industry, which has been eager for specifics since the government pledged the strategy last year. Germany sees hydrogen as a crucial element in its transition away from gas and coal reliance.
The government announced that the tender process for up to four gas plants, with a combined capacity of ten gigawatts (GW), will commence soon. Government support for the construction and operation of future hydrogen-capable gas power plants will amount to approximately $17 billion, covering both capital and operating expenses.
As reported by Reuters, the government stated that plans for transitioning to hydrogen should be formulated by 2032 to enable full conversion of the plants to hydrogen between 2035 and 2040. Additionally, the government plans to subsidise power plants exclusively running on hydrogen, with capacities of up to 500 megawatts, for energy research purposes.
