Germany needs political boost for hydrogen storage

Germany’s National Hydrogen Council has laid forth a plan to increase hydrogen storage and assist the switch from natural gas to hydrogen.

The Council emphasizes the need for political support to boost hydrogen storage investments as demand in Europe’s largest economy is forecast to exceed 5 TWh by 2030 and then expand further.

Germany has a large capacity of cavern storage facilities that can be adapted to store hydrogen, assuring supply security. A hydrogen network connects these facilities to national consumption centers.

However, due to the energy crisis, Germany may need to continue using some of these subterranean storage locations for natural gas, requiring additional hydrogen plants.

Investment decisions must be taken in the middle of this decade due to the five-year approval and conversion procedure, therefore incentives and funding must begin now.

The National Hydrogen Council offers a package to encourage hydrogen storage investments. These include CAPEX and OPEX-related funding programs for the conversion of existing caverns or the construction of new hydrogen storage facilities; accelerated approval procedures; the introduction of a regulatory framework for hydrogen storage projects; regulatory incentives; exemption from entry/exit fees and surcharges for connected hydrogen networks when using hydrogen storage facilities; and power grid charge exemption.