 |
| Germany spends billions to build 4 gas-fired power plants. (Source: Getty Images) |
New gas-fired power plants will then be converted to run on hydrogen between 2035 and 2040, German officials said. A market-based capacity-building mechanism will allow for an expansion of electricity generation by 2028.
These plants will have a total capacity of up to 10 gigawatts, playing an important role in ensuring a stable power supply even during times when there is very little solar and wind power.
German energy company Uniper is said to be involved in the construction.
The company said it was “relieved” that the decision to build the new plants had been made. Germany needed to act quickly because the approval process and construction of the plants and storage facilities would take several years.
Before the conflict in Ukraine, Germany fueled its industry with Russian gas. However, the country had to increase its electricity imports last year after the government decided to phase out nuclear power in favor of renewable energy sources.
In April 2023, Germany closed its last three nuclear reactors despite warnings that the closures would actually cause more fossil fuels to be burned.
* According to Bloomberg news agency, rising energy costs have led to a series of factories in Germany having to close or move production lines abroad.
The loss of cheap Russian gas supplies has dealt a further blow to German producers already struggling to remain cost-competitive.
Germany's reign as an industrial superpower is coming to an end as industrial output in the country fell for the first time since 2017 and is set to be further hampered by a sharp reduction in Russian supplies in 2022.
Russian energy giant Gazprom has cut gas exports to Europe following sabotage of the Nord Stream 1 and 2 pipelines in September 2022.
“We are really not sure if we can survive in the near term, production costs are skyrocketing,” said Stefan Klebert, CEO of machinery manufacturer GEA Group AG.
The results of a survey by the Federation of German Industry in September 2023 showed that concerns about energy security and energy costs are the top reasons why many companies in Germany are shifting their investments abroad.
Chemical companies are among the hardest hit by the loss of Russian gas.
For example, BASF SE - Europe's largest chemical maker - and chemicals giant Lanxess AG are currently cutting thousands of jobs.
Source
Comment (0)