Germany agrees to tender for 12.5 GW of gas-to-hydrogen projects

The German federal government has decided to launch a tender for 12.5 GW of hydrogen-ready gas-fired power plants, as well as 500 MW of long-term storage, as part of the power plant strategy, which is part of the country’s economic growth plan. In the first phase, 5 GW of hydrogen-ready gas-fired power plants, 2 GW for the retrofitting of old gas-fired power plants to hydrogen, 500 MW of hydrogen power plants and 500 MW of long-term storage will be put out to tender. In the second phase, an additional 5 GW of hydrogen-ready gas-fired power plants will be offered. The tenders, which are expected to start in late 2024/early 2025, will offer subsidies covering the investment costs and the operating cost difference between hydrogen and natural gas for 800 full-load hours per year. The project, which is planned to be built mainly in southern Germany, is expected to switch to hydrogen within 8 years. The project received approval from the European Commission in June 2024.