How can the gas distribution networks be used in the future if heating with fossil natural gas is no longer allowed? On the transport of green hydrogen, says the DVGW association. What about the costs?
With the energy transition, is hydrogen produced in a climate-neutral way also an option for heating single- and multi-family homes? The gas and water association DVGW, which represents, among other things, the majority of natural gas network operators, says yes – and refers to a new study that it commissioned itself.
According to the study by the consulting firm Frontier Economics, green hydrogen will cost end customers between 12 and 17 cents per kilowatt hour in 2035, the association reported on Thursday. The price for natural gas will then be between 9 and 11 cents, taking rising CO2 prices into account. Biomethane will cost around 10 to 13 cents – depending on the biomass used to produce it. For comparison: According to the energy industry association BDEW, the average gas price in July was 14.8 cents per kilowatt hour for single-family homes and 14.5 cents for multi-family homes.
Lower costs for hydrogen production
“After 2035, end customer prices for hydrogen could fall and approach those of natural gas,” reported the German Gas and Water Association (DVGW). The main drivers for this are lower costs of hydrogen production and rising CO2 prices as part of emissions trading. In 2045, the procurement costs for hydrogen could fall to 11 to 15 cents per kilowatt hour. According to the Building Energy Act, natural gas may no longer be used for heating purposes from 2045 in order to become climate neutral.
“The results of the study are a strong indicator that hydrogen can also be competitive in the heating sector in the future,” said DVGW CEO Gerald Linke, according to the statement. Studies have also proven the hydrogen suitability of the existing gas network.
Almost 3,500 companies are members of the DVGW, including numerous municipal utilities. According to the association, 91 percent of gas network operators are members.
Greenpeace: Hydrogen too valuable
The environmental protection organization Greenpeace rejects the use of hydrogen for heating purposes in buildings. “The efficiency losses during production are too great and make hydrogen too expensive and too valuable,” says a statement on the heat transition. Green hydrogen or synthetic methane produced from it can be used in a similar way to natural gas. “But an enormous amount of energy is lost during the conversion, which is why they need a lot of renewable electricity and therefore space.” This means that they would not be available indefinitely. “Using them to heat buildings would be a total waste.”
Source: Stern
