Uniper plans up to 600GWh of hydrogen storage in Germany by 2030 — if it can get subsidies
Utility calls for Contracts for Difference scheme for H2 storage
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The company is already developing the Hydrogen Pilot Cavern (HPC) in Krummhörn, Lower Saxony, and the HyStorage project in Unterreit, Bavaria.
If the full 600GWh were to be realised, it would outstrip Uniper’s fossil gas storage capacity in three of its major markets — Austria, Germany and the UK — by a factor of 7.5 on an energy basis.
When measured on volume that is likely to be a more than 20 times the size of Uniper’s gas storage facilities in those countries, as gas has three times the volumetric energy density of hydrogen.
However, the storage of hydrogen, which is notoriously leaky, will be more expensive than methane.
And Uniper warned that the proposal will not happen unless it gets an adequate subsidy programme to bolster its storage business model.
“Investments in the development of hydrogen storage facilities require a regulatory and funding framework in order to achieve workable business models,” said Uniper’s chief operating officer, Holger Kreetz.
“By planning the development of hydrogen storage facilities in the order of up to 600GWh by 2030, we as Uniper are making advanced investments. Whether and how the storage projects can be realised will depend largely on the framework conditions and economic viability.”
Ideally, governments will put in place a Contracts for Difference programme for hydrogen storage, said Kreetz, most likely referring to a scheme in which the state makes up the difference between the cost of storing hydrogen and that of storing natural gas.
“We have concrete proposals that ensure a balance between the necessary hedging of investment risks and a competitive market model on the one hand, and security of supply through storage on the other. The principles of Contracts for Difference should be applied to achieve the aims in a cost-efficient and effective manner.”
A market consultation will now be conducted in February and March 2024.
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