Hydrogen's Future in Gas Grids: A Looming Decline
A recent survey by business consultancy Horvath reveals a stark shift in the energy sector's outlook on hydrogen's role in gas grids. Most energy companies in Germany, Austria, and Switzerland are now planning to reduce investments in their gas grids, as they increasingly recognize the limitations of using these grids for climate-neutral hydrogen transportation. This shift comes as a surprise, considering the recent national controversy over the transition to climate-neutral heating.
The survey, cited by Der Spiegel, highlights a widespread belief that gas networks will no longer play a central role in the future. With Germany's 2045 net-zero deadline approaching, the phase-out of fossil gas is imminent. While the gas grid could theoretically be repurposed to carry climate-neutral fuels like biogas or green hydrogen, these alternatives are expected to be costly and inefficient for heating buildings. As a result, over 90% of the country's gas distribution grids may become obsolete.
Horvath's findings are striking: 65% of the 91 utilities surveyed in German-speaking countries plan to cut gas grid investments in the coming years. A staggering 61% anticipate significant reductions or even decommissioning of their gas networks by 2040. This marks a dramatic shift from last year's survey, where only 2% of respondents saw potential for hydrogen conversion. In contrast, two-thirds of survey participants plan to increase spending on electricity storage, indicating a shift towards alternative energy solutions.
Germany's gas networks, spanning almost 600,000 kilometers, have provided reliable income streams. However, the industry's outlook has changed. Local utilities are now preparing rules that will allow them to phase out gas grids as they transition to a climate-neutral future, potentially cutting off consumers without their consent if warned in advance. This move reflects the industry's recognition of hydrogen's limitations and the need for a more sustainable approach to energy distribution.
