Gas and Hydrogen Industry Sees Coalition Talks on the Right Track

The working groups of the coalition negotiations between CDU, CSU, and SPD have presented their interim results. In the view of Dr. Timm Kehler, Chairman of Die Gas- und Wasserstoffwirtschaft (The GErman Gas and Hydrogen Industry), the paper from the Energy and Climate working group provides a very solid basis for the ongoing coalition talks:

'The negotiation results set a clear focus: climate policy ambitions remain high, while at the same time competitiveness is to be enhanced. This will be achieved in particular through an expansion and diversification of climate protection solutions. These include, for example, the use of CCS, the approval of all hydrogen production pathways, the integration of biomass, and a strong emphasis on imports. The fact that the future coalition partners aim to enable and support long-term supply contracts with international gas providers will strengthen Germany’s energy security.

Of central importance is the prioritization and planned simplification of the construction of up to 20 gigawatts of new gas-fired power plants. These are to be built primarily at existing power plant sites. We also explicitly welcome the goal of introducing a comprehensive capacity mechanism to enhance the cost efficiency of the power system.

The strong emphasis placed on carbon management and hydrogen clearly signals their prioritization. In particular, the recognition of CCS facilities as being of ‘overriding public interest’ marks a decisive step toward rapid implementation. The hydrogen section reflects a clear ambition to expand supply and roll back the excessive regulation of recent years. A modern energy system will rely on green electrons and green molecules – and hydrogen, along with its infrastructure, will play a key role in transporting and storing large amounts of energy. In this context, the proposed introduction of a green gas quota is crucial – acting as a risk mitigation mechanism for scaling up biomethane, synthetic methane, and hydrogen.

The provisions on the Building Energy Act remain contentious. For us, it is clear: a fundamental redesign is needed, but a rollback to the state before the introduction of the current heating regulations is not an option. Despite the visible differences regarding the heating market in buildings, we are encouraged to see both sides advocating for the future role of gas networks. This corrects the previous policy of decommissioning.

The negotiation outcome provides a viable foundation for a competitive and climate-compatible energy system. Now it’s up to the remaining negotiations – only they will reveal whether the measures are financially viable and the full potential can truly be tapped.'