ALBAWABA - The German Ministry of Economy announced on Monday that the government has approved plans to support gas power plants that can transition to hydrogen, with a support cost of $17 billion. This move is part of the efforts to address the gaps in renewable energy intermittency and accelerate the shift to low-carbon energy generation.
The decision comes after pressure from the industry for more details, following the government's promise of this strategy last year, as Germany relies on hydrogen to move away from gas and coal, Bloomberg reported.
The ministry stated that the tender process for the four gas plants, with a total capacity of 10 gigawatts, will take place soon, although no specific date was provided. Two sources informed Reuters on Monday that the government support for companies to build and operate gas power plants ready for future hydrogen conversion would amount to approximately €16 billion ($17 billion), covering capital and operational support.
The ministry emphasized the need to establish transition plans for hydrogen by 2032, enabling the full conversion of the plants to hydrogen between 2035 and 2040.
