The Handelsblatt's important energy conference in Berlin in mid-January revealed the current state of affairs regarding the energy transition. Federal Minister for Economic Affairs and Climate Protection Robert Habeck took the opportunity to comment on the continued operation of lignite-fired power plants as well as the use of hydrogen andCO2 storage.
Around 500 participants discussed energy policy in Berlin from January 16 to 17, 2023. Robert Habeck, Federal Minister for Economic Affairs and Climate Protection, emphasized that a European industrial electricity price is needed
The Federal Minister for Economic Affairs opened the annual conference with the key statement that energy security and climate protection must be brought together. The decision not to shut down lignite-fired power plants was necessary but a sin in terms of climate policy, he admitted. With the LNG terminals, the demand for lignite will decrease and the target of "80% renewables by 2030" can be achieved. Hydrogen production with a well-functioning infrastructure will also be expanded to achieve this. Where and whether carbon dioxide will be stored in Germany will be decided soon. In any case, cross-border trading inCO2 will be made possible.
Restructuring the energy sector
A rethink has begun in the oil and gas industry, as the presentation by Patrick Wendeler, BP Europe, showed. Wendeler emphasized that energy must continue to be available and affordable at all times. New value chains are currently being established at BP. Hydrogen production plays a central role. Biofuels can be offered in the short term, but large quantities of hydrogen will not be available until 2050. Hydrogen pipelines will be built from Norway to Germany by 2030 in order to supply Germany with Norwegian hydrogen. CCS technology is also being expanded. For example,CO2 from the Netherlands is already being injected in Norway, as Grete Tveit, Equinor, reported.
Andreas Schell, EnBW, sees 2022 as a lost year in the fight against climate change. In the USA, hundreds of billions of dollars are being subsidized for sustainable technologies in industry that benefit climate protection. In Germany, on the other hand, the energy transition is being slowed down by rigid rules. For example, the planning and implementation time for a wind farm is 70 long months. Rasmus Errboe, Ørsted, reported on the realignment of the company. Ørsted was an oil and gas company and is now the world market leader in offshore wind energy. He pleaded for the right framework conditions so that energy independence, security and decarbonization can succeed.
High profits made by the energy industry as a result of the energy crisis are to be transferred through the laws initiated by the German government. This solidarity levy is not accepted by all companies. For example, the energy company Exxon Mobil is taking the EU to court over the new tax.
The industry in Germany has saved more energy than private consumers through partial plant closures or substitute products in which crude oil is now processed instead of natural gas, as well as drastic cost-cutting measures. The widespread use of heat pumps should help to save natural gas for the provision of heat, but this requires electricity. And grid expansion is important for this.
Grid expansion has made good progress in recent years. Hans-Jürgen Brick, Amprion, emphasized that the population and all those involved must pull together. Battery storage systems are being integrated into the distribution grids in order to ensure that the grids still function reliably when they are heavily utilized. Andrew Mack, Octopus Energy, called for e-cars to be allowed to be used as storage systems. However, legal regulations still need to be put in place first. A digital infrastructure with variable electricity prices should encourage consumers to adapt their electricity demand to availability.
The President of the Federal Network Agency, Klaus Müller, emphasized that 14% of gas was saved in 2022 and two LNG terminals were connected to the gas grid. Although a gas shortage is no longer expected in the coming months, it is essential to continue saving gas. The energy crisis can only be overcome with investments, as Anna Borg, Vattenfall, emphasized. The energy infrastructure must be adapted to the greater demand for electricity. She also emphasized that the framework conditions must be right and that fast, efficient and reliable approval procedures are needed.
The expansion of renewable energy can only progress if approval procedures are simplified. For Wolfgang Gründinger, Enpal, the current obstacles to the installation of solar systems are the shortage of skilled workers, product bottlenecks and bureaucracy. Christian Meyer, Environment Minister of Lower Saxony, does not want any new dependencies and is in favor of expanding the solar industry in Germany.
Hydrogen
The high energy prices have a steering effect and investments are more likely to pay off. The LNG terminals are designed in such a way that they can also be converted to hydrogen or other energy sources (ammonia). The demand for hydrogen will increase steadily over the next few years. For example, hydrogen can be used to decarbonize steel production, as Henrik Henriksson, H2 green steel, reported. However, green steel is more expensive to produce and its value needs to be redefined. Hydrogen could also be used to generate process heat if the price level is right, as Lars Baumgürtel, Zinq Group, said. He appealed for the infrastructure to be expanded now. Katherina Reiche, West Energy and National Hydrogen Council of the German government, also assumes that the demand for hydrogen will be much higher in the coming years than initially assumed. The green hydrogen is to be produced using surplus electricity from renewables and distributed via the existing natural gas network.
The congress made it clear that the current energy crisis was caused by dependence on gas and oil supplies. Consistent use of renewable energy sources and energy savings are the opportunity for climate protection. The energy sector is undergoing a major upheaval. Entire business areas need to be realigned, which will require immense investment. The competitiveness of German companies should be maintained with a regulated European industrial electricity price.
