Lack of incentives biggest hurdle for climate-neutral gases – German energy industry
Clean Energy Wire
The lack of financial incentives is the biggest hurdle standing in the way of climate-neutral gases such as green hydrogen, aside from levies, said German energy companies in a survey by the Association of Energy and Water Industries (BDEW). A large number of companies, however, expect the economic importance of hydrogen to increase significantly in the coming years. “The development of a much-needed hydrogen economy needs political impetus,” said BDEW head Kerstin Andreae. Investment in hydrogen technologies is a “mammoth task” for many companies and requires government support in the form of “appropriate funding programmes, which must now be set in motion quickly,” she added.
Hydrogen made with renewable electricity has emerged as a key stepping stone to reach net-zero climate targets. The climate-neutral gas now looks set to become the technology of choice to decarbonise sectors where emission reductions are particularly difficult, for example in heavy industry and aviation. As one of the key drivers behind a pan-European effort, Germany has set out to become a global leader in "tomorrow's oil" with a national strategy.