DVGW Warns: Lack of Hydrogen Puts Jobs at Significant Risk

A large portion of the energy provided via natural gas is used in industry and manufacturing for the production of so-called process heat. Process heat refers to the heat required for specific technical processes and procedures used to produce, process, or refine products, reaching temperatures between 100 and 1,500 degrees Celsius. This demand has amounted to around 200 terawatt-hours (TWh) in recent years. This corresponds to nearly one-tenth of Germany's final energy demand (reference year: 2020) of 2,318 TWh and one-fifth of the country’s natural gas demand. These findings are the result of a study conducted on behalf of the German Association for Gas and Water (DVGW).

To support the study, the Gas Technology Institute gGmbH Freiberg (DBI) analyzed relevant industries and gas consumers, mapping over 5,600 industrial sites. Through distance analysis of industrial and commercial locations, the study determined which sites are currently connected to the gas transmission or distribution grid and whether they could be supplied by the planned hydrogen core network, which was approved last week by the Federal Network Agency (BNetzA).

Greater Focus Needed on Distribution Networks

“To accelerate the hydrogen rollout in Germany, the expansion of hydrogen infrastructure must focus more on distribution grid. These networks are particularly important because they transport the green energy of the future in molecular form to where it’s needed: industrial and commercial sites, power plants, heating networks, and households,” said Prof. Dr. Gerald Linke, Chairman of the DVGW.

Many companies with energy-intensive production processes are located across the country. Distribution networks supply 80 percent of industrial and commercial sites in Germany and cover their gas needs for process heat generation. Large industrial sites are primarily supplied by the natural gas transmission network, and the future hydrogen core grid will focus on major chemical industry hubs. Twenty-seven percent of these sites are within one kilometer of this network. However, over three-quarters (78 percent) of the gas demand for process heat is located more than a kilometer away from the hydrogen core network. Numerous industrial companies and smaller sites in other manufacturing sectors receive gas from the distribution network, and a hydrogen-capable distribution network will be essential to supply these sites.

Risk to Jobs

“Due to the nature of their operations, not all businesses currently using natural gas from the distribution network for process heat can switch to electric systems or processes. If the gas supply were cut off and there were no option to source hydrogen through the distribution networks, these businesses would be forced to cease production. This would have significant impacts on the economic strength of industrial locations,” warns DVGW chief Linke.

According to calculations by DMT Energy Engineers, a subsidiary of TÜV Nord involved in the study, approximately 770,000 jobs across districts and municipalities without future hydrogen supply would be at risk. This potential supply gap would affect around 10 percent of the workforce in the manufacturing sector nationwide.