Germany's Strategy in Chemical and Steel Industries: Importing Green Feedstocks
Key Ideas
- Germany is recommended to import cost-effective green feedstocks like ammonia, methanol, and DRI for long-term competitiveness in chemical and steel industries.
- The country aims to import up to 70% of hydrogen to meet its 2030 demand, with a focus on shifting to green feedstocks for key industries.
- Ariadne report suggests that importing more feedstocks could lower hydrogen demand in Germany, emphasizing the need for continued support in transitioning to hydrogen.
- The approval of Germany's hydrogen core network (HCN) aims to connect import terminals to industrial hubs, complementing the nation's hydrogen production and import strategy.
The latest government-funded Ariadne report recommends that Germany should enhance its competitiveness in the chemical and steel industries by importing cost-effective green feedstocks such as ammonia, methanol, and direct reduced iron (DRI) instead of green hydrogen. The report highlights that high costs for green energy carriers pose a long-term disadvantage, and a complete replacement of fossil fuel imports with green alternatives is deemed unrealistic due to transportation challenges. Shifting to green feedstocks for key industries is proposed to retain jobs and competitiveness while outsourcing energy-intensive production steps abroad.
Germany plans to import up to 70% of hydrogen to meet its 2030 demand, with a focus on assessing the necessity of importing feedstocks for a viable industrial transformation. The Ariadne report suggests that by importing more feedstocks, the nation's hydrogen demand could be lower than assumed, emphasizing the importance of supporting the transition to hydrogen in certain industrial sectors.
Additionally, Germany's approval of the 9,040km hydrogen core network (HCN) will facilitate a feed-in capacity of 101GW of hydrogen and a feed-out capacity of 87GW, connecting import terminals to industrial hubs across the country. This network is expected to complement the country's ambitious hydrogen production and import strategy, supported by EU regulations.
Furthermore, the article mentions a 'friendshoring' approach, advocating for partnerships with allied European countries to lower costs and ensure supply security. Examples like the REPowerEU Plan aim to cut dependency on Russian fossil fuels and facilitate renewable hydrogen imports through various corridors. Overall, the article depicts a positive sentiment towards Germany's strategic shift towards importing green feedstocks and enhancing its competitiveness in key industries.
Topics
Green Hydrogen
Hydrogen Infrastructure
European Partnership
Industry Competitiveness
Economic Efficiency
Import Strategy
Green Feedstocks
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