Industry groups in Germany voice opposition to proposed state-owned hydrogen network company

Zukunft Gas and the German Hydrogen and Fuel-Cell Association (DWV) have jointly stated that it would be more efficient for the existing gas companies to develop the infrastructure for hydrogen distribution instead of setting up a state-owned hydrogen network company. The associations believe that the existing distribution network that supplies 20 million households and 1.8 million commercial and industrial customers, along with the power grid, should form an integrated energy system. The gas industry already has the commitment and pioneering spirit necessary to carry out this integration.

The German federal government had considered setting up a state-owned hydrogen network company at the end of 2022 that would compete with the existing gas network operators. However, this plan was rejected by the chairmen of Zukunft Gas and DWV, who emphasized the need for speed and pragmatism with as little administrative structure as possible. The Bavarian economy and energy minister, Hubert Aiwanger, also criticized the plan in December, stating that it would hinder the development of the hydrogen economy in Germany.

The associations praised the H2Global initiative, which supports the production of green hydrogen and its derivatives on an industrial scale in non-EU and EFTA countries, and called for a clear certification system to establish a functioning international hydrogen market. They believe that efficient integration of funding instruments across the entire supply chain can provide an effective European response to the US Inflation Reduction Act (IRA).