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SPD Pushes for Affordable Hydrogen to Sustain NRW Industries

Arnes BiogradlijaBy Arnes Biogradlija13/09/20233 Mins Read
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In a bid to ensure the continued operation of energy-intensive industries like chemicals and steel manufacturing within North Rhine-Westphalia (NRW), the Social Democratic Party (SPD) parliamentary group in the state parliament is advocating for substantial efforts from the state government to make hydrogen readily available as an affordable energy source.

The significance of affordable hydrogen in NRW becomes particularly apparent due to several factors. Firstly, the United States is increasingly incentivizing industrial establishments, posing competition for NRW. Secondly, energy prices have been on the rise, partly due to the loss of access to inexpensive Russian gas. Notably, the SPD’s proposal doesn’t acknowledge its own role in Germany’s high energy costs, as it didn’t actively oppose or support the shutdown of the last three nuclear power plants, a decision influenced by the Ukraine conflict.

Specifically, the North Rhine-Westphalian Social Democrats are advocating for the adaptation of existing natural gas networks to facilitate hydrogen distribution, with a focus on medium-sized enterprises. Additionally, the state should establish hydrogen storage facilities to ensure the availability of this valuable resource when needed. NRW must also plan pipeline networks for hydrogen, aiming to harness “extensive electrolysis capacities” within the state.

The vision appears to revolve around the development of a substantial renewable energy infrastructure in NRW, including wind turbines and solar panels, capable of not only meeting the electricity demands of households, electric vehicles, and industry but also sustaining energy-intensive facilities engaged in hydrogen production.

One of the central aspects of the proposal is the establishment of a central coordination office for hydrogen economy development within the Ministry of Economic Affairs. The SPD contends that NRW Economics Minister Mona Neubaur and her ministry have not done enough to establish a reliable and cost-effective hydrogen supply.

However, it’s worth noting that NRW is providing Thyssenkrupp with €700 million to operate a steel mill using hydrogen in the future, a clear indication of the state’s commitment to hydrogen initiatives.

Alexander Vogel, an SPD member of the state parliament and co-initiator of the proposal, doesn’t underestimate the cost associated with developing a hydrogen economy. He emphasizes that the future coordination office must secure EU approval for state-funded projects, citing the substantial delay in Brussels’ approval of subsidies for Thyssenkrupp.

In an interview, Vogel adds that electrolysis plants for hydrogen in NRW could potentially be powered by wind energy from the North Sea. However, the required infrastructure is still under construction, and the planned increase in wind power will be in demand elsewhere as well.

The SPD’s proposal underscores the crucial role hydrogen is expected to play in NRW’s industrial landscape and the importance of making it an affordable and sustainable energy source for the region’s energy-intensive sectors. It reflects a broader trend of transitioning toward cleaner and more resilient energy solutions in industrial regions.

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