Hydrogen import options for Germany (Summary)

Russia’s attack on Ukraine has prompted Europe to seek alternatives to Russian gas. Germany in particular has set about building LNG terminals at breakneck speed. However, the possible long-term nature of the associated import contracts raises the question of whether they are compatible with Germany’s goal of becoming climate neutral by 2045 and planning its infrastructure accordingly. One argument is that the import terminals could in future be used to import renewable hydrogen. Though there is broad consensus that the transition to climate neutrality will require renewable hydrogen and the molecules produced from it to be imported in substantial quantities, the form of, schedule for and feasibility of the imports are still being debated, as is the question of whether the LNG terminals can really be regarded as “H₂-ready”.

In this context, a novel concept was proposed for Germany that would combine LNG terminals with renewable hydrogen by using synthetic natural gas (SNG) and additionally feature a nearly closed carbon cycle. Current industry plans envisage roughly 15 terawatt hours of SNG being imported each year by 2030, which corresponds to around five percent of the total capacity of the planned LNG terminal. To date, the SNG route with a nearly closed carbon cycle has not been independently investigated in the literature.

To provide a broader foundation upon which to debate this option, we asked Hamburg University of Technology to shed light on the advantages and disadvantages of this concept and to compare it with other import options that have been discussed at greater length so far.