Germany’s Federal Minister for Economic Affairs, Katherina Reiche, is considering a transitional approach to decarbonizing industrial processes that involves initially permitting the use of natural gas in the production of hydrogen, despite long-term climate goals Speaking at a panel discussion during the annual industrial policy conference hosted by the IGBCE trade union foundation, Reiche suggested discussions with the European Commission are needed to allow for this temporary measure
The proposal centers on utilizing natural gas to create what is termed “sustainable” hydrogen, serving as a stepping stone towards fully renewable production Reiche explained the current challenge lies in securing consistent demand for hydrogen, emphasizing that industrial consumers require a reliable supply before fully transitioning A key consideration, she stated, is defining “sustainable” hydrogen in a way that aligns with consumer expectations of achieving sustainability benefits Premiums associated with green hydrogen will only be accepted if the cost remains competitive
Currently, hydrogen is categorized based on its production method “Green” hydrogen is generated through the electrolysis of water using renewable energy sources “Blue” hydrogen involves splitting methane or natural gas via steam reforming, with the resulting CO2 captured and stored, while “gray” hydrogen releases the CO2 directly into the atmosphere Although carbon capture and storage (CCS) is seen as a mechanism to mitigate emissions, it does not eliminate them entirely and methane leaks during fossil fuel extraction remain a concern
The Intergovernmental Panel on Climate Change (IPCC) recognizes CCS as a potentially valuable tool for addressing unavoidable emissions within sectors like cement, steel and chemicals However, the IPCC also cautions that reliance on carbon removal technologies could diminish the impetus for immediate emission reductions CCS projects have thus far proven costly and difficult to scale, falling short of projected capacity Ensuring the long-term integrity of underground CO2 storage is also a critical challenge, requiring safeguards against potential leakage that would negate any climate benefits