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TES welcomes new H2 strategy update by the German Government

TES is glad to welcome the updated German H2 strategy that envisions an increased H2 usage to 95 TWh–130 TWh for 2030 with 50% to 70% to be imported. The German Government also raised the goal for domestic electrolysis capacity from 5 GW to 10 GW, demonstrating the long-term commitment to green H2 in Germany.

The updated strategy proves that green molecules will represent a huge component of the decarbonization in Germany. H2 derivatives, such as TES’ eNG (also called synthetic methane or eMethane), which is the ideal drop-in fuel to replace natural gas, produced by mixing green H2 with CO2, are perfect examples of how Germany plans to shift away from fossil fuels through green molecules. eNG has been included in the strategy and will support the decarbonization of the German industry while providing accessible and bankable green molecules. The inclusion of eNG in the strategy demonstrates that Germany is heavily pushing H2 derivatives and green molecules to decarbonize hard to abate and hard to electrify sectors. As the strategy sets out, the greater part of the demand will have to be covered by imports of H2 and its derivatives. And this is in line with what TES is working on in Germany.

TES’ eNG, which is now recognized in the updated strategy, plays the role of the key enabler and accelerator of the fast-growing H2 economy. TES, with its green energy hub at the port of Wilhelmshaven, Germany, is set to contribute to the German decarbonization and H2 import plan. As the strategy sets out, the import of H2 and its derivatives are planned to be largely ship-based at least until 2030. The key benefit of eNG is that it is familiar, simple and safe. Indeed, eNG is molecularly identical to natural gas used in the EU’s gas network today. This means that eNG can flow immediately in Germany’s existing 511,000 km long gas grid without the need to build new pipelines which would take many years to complete.

As a result, energy-intensive industries and high emitters of CO2 will be able to simply replace their fossil fuel natural gas use with eNG without changing any processes thus contributing to German decarbonization and economic development. By using CO2 as a reusable carrier, eNG enables countries to secure their transition to green molecules and green H2.