TES Unveils Study on Competitive Hydrogen Import Options for Germany

Tree Energy Solutions (TES) has released a new study conducted by Frontier Economics, analyzing hydrogen import options for Germany and emphasizing the competitiveness of e-NG, or electric natural gas (e-NG). The report suggests that while no single hydrogen technology emerges as superior, e-NG stands out for its cost-effectiveness and compatibility with existing energy infrastructure.

Key findings from the study reveal that the import costs for e-NG are competitive against alternatives like liquefied hydrogen and ammonia. Even when reconverted into hydrogen, e-NG remains a viable option.

One of the significant advantages of e-NG highlighted in the report is its integration with Germany’s existing natural gas infrastructure. This compatibility not only accelerates the energy transition but also reduces overall system costs, making e- a prime candidate for rapid decarbonization in sectors where natural gas is prevalent.

The study advocates for a diversified hydrogen import strategy, underscoring the importance of incorporating e-NG to enhance Germany’s energy security and flexibility. Unlike other hydrogen derivatives, e-NG can be utilized directly in current applications, facilitating a swift entry into the hydrogen market.

Furthermore, the study outlines the long-term potential of e-NG as a transitional solution to a hydrogen economy. It highlights that e-NG can be converted back into hydrogen using existing technologies, supporting future hydrogen demand while enabling the utilization of renewable energy resources from regions rich in wind and solar energy.

The environmental impact of e-NG is also a focal point, as the report asserts that it can achieve climate neutrality when produced with biogenic CO2 or through direct air capture. As Germany strives to meet its ambitious climate targets, including a 65% reduction in greenhouse gas emissions by 2030 and achieving climate neutrality by 2045, e-NG presents a promising avenue toward these goals.

TES’s commissioned study emphasizes the critical role of e-NG in Germany's hydrogen import strategy, advocating for a technology-open approach to ensure the most effective long-term solutions are adopted.