RWE wants to build about 3GW of hydrogen-fuelled gas-fired power plants in Germany by the end of the century, chief executive Markus Krebber said at the German utility’s annual general meeting (AGM).
Krebber said the gas-fired plants would be built on top of RWE’s existing coal-fired power stations to support renewables, but more clarity was needed on the future supply of clean hydrogen, the hydrogen network and flexible plant support before a final investment decision could be made.
Rwe’s target is in line with comments made in March by Chancellor Olaf Scholz, who said that between 17GW and 21GW of new hydrogen-fueled gas-fired power plants would be needed in Germany between 2030-31 to provide backup power during periods of low wind speeds and little or no sunlight.
The Federal Network Agency, Germany’s grid regulator, has told the German government that this is the most cost-effective way to significantly reduce emissions from the power sector.
Rwe has a renewable energy portfolio of more than 15GW, Krebber said. Rwe’s other core business is building wind and solar farms to ensure carbon-free electricity is available when needed. Gas-fired power stations will perform this function in the future.
Krebber said RWE bought a 1.4GW Magnum gas-fired power plant in the Netherlands last year, which can use 30 percent hydrogen and 70 percent fossil gases, and said conversion to 100 percent hydrogen was possible by the end of the decade. Rwe is also in the early stages of producing hydrogen and gas-fired power stations in Germany, where it wants to build about 3GW of capacity.
He added that RWE needed clarity on its future hydrogen network and flexible compensation framework before choosing project locations and making investment decisions. Rwe has placed an order for the first industrial cell with a capacity of 100MW, the largest cell project in Germany. Rwe’s application for subsidies has been stuck in Brussels for the past 18 months. But RWE is still ramping up investment in renewables and hydrogen, setting the stage for coal to be phased out by the end of the decade.
Post time: May-08-2023