Business News

Germany, Norway Reach Agreement on Blue Hydrogen Supplies

Distressed Patriotic Flag Unisex T-Shirt - Celebrate Comfort and Country $11.29 USD Get it here>>


A major Norwegian energy company has reached an agreement to supply Europe’s largest economy with “blue” hydrogen.

Norway’s Equinor announced an agreement on Jan. 5 to supply the German power utility, RWE, with low-carbon hydrogen, in the first step towards replacing natural gas and coal, reported Deutsche Welle.

The Norwegian supplier agreed to build hydrogen fueled power plants in Germany over the next few years, along with a major pipeline to deliver gas supplies to its southern neighbor.

There was no statement on how many power plants would be built, or how much the cost of investment would be for each side.

Germans Seek New Energy Alternative to Russian Gas

The war in Ukraine has forced Germany to end its long standing dependence on Russia gas, while its economy suffers from high energy prices.

Since the start of the war in Ukraine and the loss of Russian gas due to sanctions and pipeline disruptions, Norway has become one of Germany’s biggest suppliers of gas, by fulfilling 40 percent of its needs.

The German government intends on reaching climate neutrality by 2045, while it plans on phasing out coal use by 2038.

Germany has also been gradually shutting down its nuclear power network since the Fukushima disaster over a decade ago.

The Norwegian government has similar climate plans, including the construction and development of offshore wind power, carbon capture and storage facilities, and the electrification of oil and gas platforms.

Germany, Norway Tighten Their Energy Alliance

German Economics Minister Robert Habeck, who visited Norwegian Prime Minister Jonas Gahr Støre last year to discuss the joint project, spoke in Oslo at a Jan. 6 joint press conference.

The two leaders have been discussing an agreement since March 2022, after they met to weigh the feasibility of building a pipeline to ship hydrogen gas from Norway, according to a joint statement.

Habeck said that Germany sorely needed plants that could produce hydrogen power and that it needed decarbonized hydrogen from Norway to fulfil that plan.

“In the midst of the energy crisis, we see how important Norway is as a reliable supplier of gas to Europe, but we also see how crucial it is that we switch more quickly to more renewable energy.” Stoere told reporters.

The new power plants would initially use imported Norwegian natural gas, before transitioning to low-carbon “blue” hydrogen production, and then finally to “green” hydrogen.

The joint proposal to build the hydrogen pipeline was backed by Gassco, the Norwegian pipeline operator, which is currently conducting a study to assess its feasibility and is expected to release the results in the spring.

“Through this collaboration we will strengthen the long-term energy security for Europe’s leading industrial country,” Anders Opedal, Equinor’s CEO and President, said in a joint press statement with RWE executives.

Proponents of View Hydrogen Power as Future

Berlin wants to gradually expand “green” hydrogen production as part of its long-term energy goals, as the clean source of energy could reduce carbon emissions by 65 percent to 1990 levels by 2030, Bloomberg reported.

The Green movement has been promoting hydrogen-based energy for years, since it mostly emits water vapor when burned.

The large scale production of “green” hydrogen, which is created by separating hydrogen from water molecules via solar and wind power, is years away from viability.

“Blue” hydrogen, which is the cheaper and most direct alternative, is produced by burning natural gas and can, in theory, capture and store more than 95 percent of carbon emissions.

“There is an urgent need for a rapid ramp up of the hydrogen economy,” said RWE Chief Executive Markus Krebber in a press statement.

“Blue hydrogen in large quantities can make a start, with subsequent conversion into green hydrogen supply,” he added.

In order to complete the project, underground storage for the carbon emissions created in the making of hydrogen fuel, which is currently prohibited in Germany, still need to be constructed.

Habeck said that Berlin is planning legislation in 2024 that would facilitate the process by lifting the ban.

‘A Further Step Backwards’

However, many environmental groups oppose the development of “blue” hydrogen facilities, due to their reliance on natural gas.

“If we want to put the energy crisis behind us for good, then we need a progressive green energy supply,” protested Sascha Müller-Kraenner, CEO of Environmental Action Germany (DUH).

“Importing blue hydrogen would, however, be a further step backwards to a fossil-fueled past,” she added.

Her organization protested the arrival of the first standard shipment of U.S. liquified natural gas to Germany at the port of Wilhelmshaven this week.

The leadership of the Green party, which includes Habeck, is facing heavy criticism from some of its own supporters for promoting shipments of gas from America as an alternative to Russian gas supplies.

The Greens are one of the three parties in the ruling coalition governing Germany.

German climate activists feel a sense of betrayal by the pro-environmentalist party, for permitting the use of coal as a temporary energy measure to keep citizens from freezing this winter.

Some have gone as far as to occupy the abandoned village of Lützerath in the state of North Rhine-Westphalia, which is being removed in order to expand a nearby open pit coal mine, leading to clashes with police.

Reuters contributed to this report.

Bryan Jung

Bryan S. Jung is a native and resident of New York City with a background in politics and the legal industry. He graduated from Binghamton University.



Source link

TruthUSA

I'm TruthUSA, the author behind TruthUSA News Hub located at https://truthusa.us/. With our One Story at a Time," my aim is to provide you with unbiased and comprehensive news coverage. I dive deep into the latest happenings in the US and global events, and bring you objective stories sourced from reputable sources. My goal is to keep you informed and enlightened, ensuring you have access to the truth. Stay tuned to TruthUSA News Hub to discover the reality behind the headlines and gain a well-rounded perspective on the world.

Leave a Reply

This site uses Akismet to reduce spam. Learn how your comment data is processed.