{"id":2909,"date":"2022-12-29T16:28:49","date_gmt":"2022-12-29T16:28:49","guid":{"rendered":"https:\/\/roydadnaft.ir\/English\/?p=2909"},"modified":"2022-12-29T16:28:50","modified_gmt":"2022-12-29T16:28:50","slug":"germanys-energy-crisis-powers-hydrogen-switch","status":"publish","type":"post","link":"https:\/\/roydadnaft.ir\/English\/2909\/","title":{"rendered":"Germany’s energy crisis powers hydrogen switch"},"content":{"rendered":"
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From the moment Russian gas exports to Germany were first disrupted in June, German firm Kelheim Fibers began casting around for alternative options to keep its engines running.<\/p>\n\n\n\n

As a result, the Bavarian-based firm, whose fibres are used in anything from teabags to tampons, will be able to use heating oil instead of gas starting mid-January.<\/p>\n\n\n\n

The downside is that will increase carbon emissions and for the longer term, the firm is considering a switch to hydrogen, which is a much cleaner energy source provided it is produced using renewable power.<\/p>\n\n\n\n

“We want to be one of the first large companies in Bavaria to switch to hydrogen,” Craig Barker, managing director of the 87-year-old firm, told Reuters.<\/p>\n\n\n\n

Energy costs account for over 60%-70% of the company’s variable expenses, overtaking that of its main raw material, Barker said.<\/p>\n\n\n\n

Kelheim Fibers is one of many small and medium-sized companies that form the backbone of Europe’s biggest economy, and that are seeking to diversify their energy mix to maintain output.<\/p>\n\n\n\n

Russia’s reduction of gas supplies to Germany following Moscow’s invasion of Ukraine in February, has forced Berlin to reactivate or extend the lifespan of its coal-fired power plants, putting greenhouse emissions targets in jeopardy.<\/p>\n\n\n\n

However, ifo economist Klaus Wohlrabe said the crisis could eventually lead to greener production.<\/p>\n\n\n\n

“Relying on fossil fuels for the long term … has proven to be a risky path. So in the medium term, at least, companies have no choice but to reorientate themselves,” Wohlrabe said.<\/p>\n\n\n\n

Kelheim Fibers, which has so far covered 85% of energy needs with gas, is in talks with stakeholders over hydrogen imports with an expected annual consumption of about 30,000 tonnes, starting from 2025, Barker added.<\/p>\n\n\n\n

“We definitely need infrastructure,” he said, adding that a pipeline will be needed to connect to the German refinery Bayernoil and a port to cover the demand the company cannot meet from domestically produced hydrogen.<\/p>\n\n\n\n

Earlier this month, Germany’s Economic Affairs Ministry approved the construction of the country’s first hydrogen pipeline network. It also announced an action plan to support small and medium-sized companies as they switch to climate-neutral production, including expanding hydrogen infrastructure.<\/p>\n\n\n\n

More is required to accelerate investments in hydrogen, including a Hydrogen Act to cut bureaucracy and regulate the hydrogen ramp-up quickly, utility industry association BDEW said earlier this month.<\/p>\n\n\n\n

“2023 must provide new impetus for investments in renewable energies, hydrogen, hydrogen-capable gas-fired power plants and energy networks,” BDEW president Kerstin Andreae said.<\/p>\n

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