AGGM in dialogue

Interview with Timm Kehler (Managing Director Zukunft Gas Deutschland)

1. What does "Zukunft Gas" stand for for you in Germany? What future does gas have?
Gas is an important part of the German energy system and will remain so in the future. In future, our energy supply must be climate-neutral - at the same time, we also need a resilient system, as the past two years in particular have shown us. The solution is an energy system based on two pillars: green electricity and green molecules. This also means that the gas industry will change. The use of fossil, non-decarbonized natural gas will become irrelevant by 2045. Instead, we will use new gases such as hydrogen and its derivatives as well as biomethane.

2. Germany had to become independent of Russian gas relatively abruptly. What were the key elements in closing the resulting supply gap?
The gas supply could be secured after the loss of Russian gas supplies for three main reasons: Firstly, LNG supplies from other gas-importing countries via the rapid development of a corresponding import infrastructure. Secondly, the upgrading of the pipelines, which previously mainly transported gas from east to west, for transportation in the opposite direction. And thirdly, the reduction of energy consumption by the population and industry.

3. The new heating law provides for a ban on the installation of oil-only or gas-only heating systems in new buildings from 2024. What opportunities and risks do you see in this?
It's not quite that simple. In fact, the new Heating Act and the amendment to the Building Energy Act stipulate that new gas heating systems may still be installed after December 1. However, in future they must be operated with new gases or with a 65 percent share of renewable energy. If a region does not yet have a municipal heating plan, gas heating systems can continue to be installed for the time being. As soon as heat planning is available, increasing proportions of new gases must be used. For example, biomethane, green or blue hydrogen at 15 percent in 2029, 30 percent in 2035 and 60 percent in 2040. Another option is gas hybrid heating, which is still permitted. In other words, the combination of a heating system powered by renewable energy and a gas condensing boiler. This makes hybrid heating a flexible heating system that is equipped with an intelligent control system and optimizes the interaction of energy sources.municipal heating planning is an important tool for the success of the heating transition: Municipalities can use it to plan which heating solutions make the most sense for their region: Hydrogen and new gases, district heating or electricity-based heating technologies.

4. Keyword climate neutrality: How much green gas (biomethane and hydrogen) is available in Germany and where will the rest come from?
The analysis of central climate neutrality studies shows that sufficient quantities of new gases will be available. These studies look at the potential of predominantly domestically produced biogas as well as predominantly imported green hydrogen, blue hydrogen and turquoise hydrogen. Biogas can also be imported from countries with high production capacities, e.g. Ukraine. The advantage here is that the gas infrastructure is already in place and could be used to import biomethane. Germany will therefore also have to import energy in the future, as it already does today.

5. Germany recently presented the H2 core network. How were the financing and regulatory framework for this secured?
The German government has developed a well thought-out concept for financing the H2 core grid: It promotes private investment and enables full financing via grid fees.Grid fees will be capped in the first few years. In addition, an amortization account will be introduced. This ensures a fair distribution of costs over time. A state guarantee until 2055 only applies in the event of unforeseeable developments, with operators contributing up to 24% of the compensation.

6. How and where do you see Austria being connected to the H2 core network?
The demand for green hydrogen is very high in Germany. Industry alone needs large quantities of climate-neutral hydrogen in order to become climate-neutral by 2045. We will not be able to produce these quantities regionally. Instead, we will continue to be dependent on energy imports in the future, including from sunny regions such as North Africa. Austria is therefore an important transit country for Germany for hydrogen imports. Added to this are the Austrian gas storage facilities, which will store hydrogen in the future. They are of central importance for the development of the hydrogen economy. Austria's connection to the hydrogen core network is therefore a high priority.

AGGM Austrian Gas Grid
Management AG
Peak Vienna
Floridsdorfer Hauptstraße 1
1210 Vienna, Austria

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