The development of industrial and infrastructure capacity for green gases like hydrogen has the potential to spur considerable structural change in the Central German mining sector.
This is the conclusion of research commissioned by the European Metropolitan Region of Central Germany, which looks at the possibilities for producing, distributing, and using climate-friendly energy sources and makes suggestions to regional players.
“For reaching the intended climate protection targets, the cross-sector substitution of natural gas with green gases such as hydrogen and biomethane is critical.” At the same time, this provides a chance to create new and more robust energy sources in one’s own nation, reducing one’s existing excessive reliance on imported energy. “The development and extension of industrial and infrastructural capacity for green gases have enormous growth and value creation potential for the Central German mining sector,” says Julia Mayer, Action Field Manager for Resources in the European Metropolitan Region of Central Germany. “We are giving regional players from industry, government, and academia the report that has now been presented,” says the author.
The 450-page report focuses on a detailed review of green gas supply channels, potentials, and demands, including hydrogen and gases from biogenic sources (biogas and biomethane). In addition, the regulatory and legislative framework requirements, as well as the corresponding added value and employment consequences in the Central German mining area, are evaluated. To anticipate future generating potential and demand for green gases in several sectors (material usage, power and heat supply, transportation), two scenarios are utilized, each assuming different degrees of greenhouse gas emission reduction by 2045.
The region can meet two-thirds of the demand for green hydrogen
According to the study, around 7 terawatt-hours (TWh) of hydrogen-based on natural gas are already generated in the central German mining area, which is almost entirely used as a raw material in the chemical sector. The constant growth of renewable energy is required to meet the region’s estimated yearly demand for green hydrogen of 33.1 TWh. In the best-case scenario, the region might create about 22 TWh of hydrogen in 2040, which would need roughly 65 percent of the PV and wind power generated at the time. Even under the best-case scenario, roughly a third of the hydrogen demand would have to be met by imports from other areas of Germany or from other countries.
Biogas and biomethane, on the other hand, are already being utilized in the generation of power and heat as a climate-friendly alternative to natural gas. The study’s 217 biogas plants produce roughly 164 million standard cubic meters of biogas (Nm 3) per year, which is utilized to generate 950 GWh of electricity and 290 GWh of heat. By 2040, this capacity might be boosted to between 500 and 700 Nm.
According to the study, employing green gases in the region can save between 8 and 12.5 million tons of CO 2 emissions per year.
Up to 10,000 employment might be created as a result of the growth of industrial value chains
The international expansion of the corresponding infrastructure is critical for bringing together the region’s potential green gas producers and consumers. The cost of establishing a central German hydrogen network, including the conversion of existing natural gas infrastructure, is estimated to be roughly 2.7 billion euros, according to the report. The generation, storage, and use of green gases, on the other hand, have significant value creation potential in the central German mining area. For the year 2040, this is expected to be either 830 million euros or 1,245 million euros, depending on the scenario. This would be accompanied by the development of 7,000 to 10,100 employees in the region that would be subject to social security contributions.
The report offers a number of tangible recommendations for regional actors in many spheres of activity in order to actualize this potential. These include, for example:
- Dismantling spatial planning constraints and converting empty mining regions for significant development of renewable energy sources
- Regional approval processes for renewable energy facilities and plants that produce greenhouse emissions should be accelerated.
- Green gas infrastructure planning that is coordinated across the country
- Model application development and marketing in many application industries
- Municipal heating plans that are focused on priority areas for district and local heating
- User markets are being created through public procurement, particularly in the mobility sector (fuel cell vehicles)
The study’s action suggestions include the establishment of a regional competence center for green gases. This should result in the development of a regional model and the coordination of the region’s approximately 20 expert networks, industrial groups, energy agencies, collaborative projects, and research institutes. The competence center’s additional areas of work might include the creation of a common marketplace, as well as transnational infrastructure planning and marketing efforts.
