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Germany presents new climate action programme
Germany presents new climate action programme
Berlin, 25 March (Argus) — Germany's cabinet today presented a climate action programme with a strong focus on renewable power and industry electrification, encompassing 67 measures designed to cut greenhouse gas (GHG) emissions by 27mn t/yr of CO2 equivalent (CO2e) until 2030, although the country's climate experts warned that it is unlikely to achieve these reductions. The measures will plug the 25mn t CO2e annual reduction gap flagged in last year's official forecasts, environment minister Carsten Schneider said. The forecasts have since been superseded by data presented by federal environment office UBA earlier this month indicating a 42mn t/yr CO2e gap. The main drivers of the action programme are additional tenders for onshore wind power capacity over 12GW, and an extra €2.9bn of subsidies for industry electrification projects. The additional wind installations are expected to achieve emissions reductions of 6.5mn t CO2e in 2030 and lower wholesale power prices by €6/MWh, Schneider said. The majority will be installed in the relatively wind-poor but energy-hungry south of the country, or in priority areas, so it will not be affected by potential future legislation limiting grid access, Schneider said. Industrial electrification subsidies are expected to lead to emissions reductions of 4.3mn t CO2e in 2030. And Schneider stressed that his ministry expects the transport and buildings sectors, which have been lagging behind in recent years, to accelerate decarbonisation in the late 2020s. A €3bn subsidy scheme with income-based support will allow for the purchase of about 800,000 electric vehicles, leading to emissions savings of 1mn t CO2e in 2030. And the government expects the planned road transport GHG reduction quota now under parliamentary scrutiny to yield emissions reductions of 6.3mn t CO2e in 2030, while funding for new heat grids will save 2.3mn t CO2e in 2030. Germany's land use, land use change and forestry (LULUCF) sector will receive €4.7bn across 23 measures including the rewetting of peatlands and conversion of forests, although the effects will be felt mainly after 2030, Schneider said. Proposals by the economy ministry , which would take pressure off fossil fuel heating systems, are likely to be counterbalanced by the current energy crisis, Schneider said, as homeowners buying a new heating system are now likely to think differently about investing in another gas-fired system. The climate action plan will make Germany "more modern and more independent of oil and gas", Schneider said, reducing its natural gas consumption by almost 7 bcm³ in 2030 and its petrol consumption by about 4bn litres — down by 9pc on current annual levels, Schneider said. The government was legally obliged to present a climate action programme under the country's climate action law, and it must also be scrutinised by parliament. Germany aims to cut its emissions by 65pc in 2030 compared with 1990 levels. They stood 48pc below 1990 levels last year. The country's council of experts on climate change ERK, tasked with scrutinising the programme, said today that it lacks novelty and ambition and is unlikely to achieve the expected reductions. The ERK, which said it was commenting subject to a more detailed review, criticised the government's strong focus on the energy sector and its insufficient relief for households on low and middle incomes, particularly in the heating sector, even though the need for social measures to accompany climate change policy will continue to grow. The ERK urged the government to look at more innovative measures such as "white certificates" for energy efficiency or a bonus-malus system for cars. It is "questionable" whether the programme's measures "adequately" address the challenge of restructuring Germany's fossil fuel-dependent "capital stock", Potsdam Institute for Climate Impact Research chief economist Ottmar Edenhofer said. It lacks "credible" policy instruments providing "clear incentives" to switch to technologies such as electric cars or heat pumps, added Edenhofer, who is also chair of the European Scientific Advisory Board on Climate Change. Germany's solar association BSW flagged the "gap between aspiration and reality", given the economy and energy ministry's plans to axe support for small-scale rooftop solar systems. And German wood industry association HDH warned against restrictions to forestry management, which it said will limit the supply of raw materials for climate-friendly timber construction. Environmental group DUH announced it will once again sue the government for the programme unless it is improved, particularly regarding the transport sector. DUH won a case against the government's previous climate action programme in January . The climate action programme stands on "shaky ground", think-tank Agora Energiewende director Julia Blaesius warned, given that it is based on outdated data and in light of planned legislation changes. Blaesius emphasised the importance of a "reliable" carbon price to provide planning and investment security to households and companies, as well as revenues for Germany's climate and transformation fund, which finances much of the programme's measures. By Chloe Jardine Send comments and request more information at feedback@argusmedia.com Copyright © 2026. Argus Media group . All rights reserved.
Sungrow, CRRC to provide tech for Kenya green NH3 plant
Sungrow, CRRC to provide tech for Kenya green NH3 plant
London, 24 March (Argus) — Chinese electrolyser manufacturers Sungrow Hydrogen and CRRC Zhuzhou have secured electrolyser supply contracts for the first phase of a geothermal-powered hydrogen and ammonia project in Olkaria, Kenya, developed by Chinese firm Kaishan Group. Kaishan signed a steam supply agreement with state utility KenGen in October 2025, under which KenGen will supply steam from existing geothermal wells for Kaishan to generate 165MW of electricity to power the electrolysers. Chinese firm Wuhuan Engineering is serving as engineering, procurement and construction contractor. Works on the site began in November 2025. Sungrow will supply 16 alkaline electrolysers rated at 1,000 Nm³/h each, while CRRC will provide eight units of the same rating, giving phase 1 a combined capacity of 24,000 Nm³/h, or around 120MW. This is sufficient to produce roughly 19,000 t/yr of hydrogen assuming continuous operation, which will be converted to the 100,000 t/yr of ammonia planned for phase 1. Kaishan plans to scale to 200,000 t/yr of ammonia at full build-out, with output processed into 480,000 t/yr of green fertilisers comprising 180,000 t/yr of urea and 300,000 t/yr of calcium ammonium nitrate. Kenya's government will offtake the fertiliser for distribution to local farmers to reduce import dependence. Total investment stands at around $800mn, with annual revenues projected at $220mn-250mn over a 25-year operating life, Kaishan said previously. Geothermal power offers a significant advantage for electrolytic hydrogen production, with capacity factors of around 90pc enabling near-continuous baseload operation without the intermittency or energy storage costs associated with solar and wind. Kenya's energy department estimates the country holds 10GW of geothermal potential, with only around 950MW of installed capacity to date. Chinese electrolyser makers have been increasing their equipment exports in recent months, supplying to projects in Europe, Middle East and Asia-Pacific. Sungrow delivered 160MW of alkaline electrolysers to Acme's green ammonia project in Oman , a 3MW containerised PEM system for Italy's MW-scale solar-to-hydrogen project , and a containerised alkaline system to a green hydrogen blending project in Brazil. By Chingis Idrissov Send comments and request more information at feedback@argusmedia.com Copyright © 2026. Argus Media group . All rights reserved.
German government under pressure on climate target
German government under pressure on climate target
Berlin, 16 March (Argus) — Germany's greenhouse gas (GHG) emissions were almost unchanged last year, according to data released by federal environment office UBA on 14 March, putting pressure on the government ahead of its new climate action programme expected next week. GHG emissions fell by less than 1mn t of CO2 equivalent (CO2e), or 0.1pc, on the year in 2025 to 649mn t CO2e. Only the country's battered industry sector achieved meaningful cuts, as energy-intensive production declined further. Although this allowed Germany to meet its 2025 target under the country's climate action law — a 48pc cut in emissions against 1990 levels — the chances of the country reaching its 2030 climate target are lower than a year ago, UBA projections show. UBA expects Germany to post a 63pc emissions reduction in 2030, compared with 1990 levels, a 30mn t CO2e gap against the country's 65pc target. UBA also projects a gap of 100mn t CO2e in 2040, with reductions of 80pc against an 88pc target, assuming no change to emissions-cutting measures. The challenge to meet the 2030 target has become "bigger but not impossible", environment and climate minister Carsten Schneider said at the presentation of the data. Germany will need to reduce GHG emissions by an average of 42mn t CO2e/yr in 2026-30, Schneider said. Expected increases in heat pump and electric vehicle sales, and onshore wind power turbine deployment, are "beacons of hope", Schneider said. Germany's energy sector emissions fell by only 0.3pc last year, mainly owing to lower wind speeds, which reduced wind power and in turn increased gas-fired generation. Industrial emissions fell by 3.8pc, with UBA noting "slow progress" in the rollout of technologies such as electrification and green hydrogen. The country's transport sector posted an emissions rise of 1.5pc, on increasing traffic volume. The buildings sector was the worst performer, recording a 3.5pc rise in emissions as lower temperatures pushed up fossil fuel consumption for heating. Schneider underlined the urgency of investments to decarbonise buildings and transport, not the least to avoid "as far as possible" the purchase of carbon allowances from other EU member states under the bloc's Effort Sharing Regulation (ESR). UBA puts Germany's likely cumulative total gap under the ESR in 2021-30 at 255mn t CO2e. Emissions in the land use, land use change and forestry sector more than halved to 27mn t CO2e, mainly thanks to Germany's forests reverting to an emissions sink, absorbing 19mn t CO2e last year. Emissions in the agricultural sector were flat. The UBA projections were finalised in November and therefore do not reflect the latest developments in the oil and gas markets, or recent legislative proposals expected to curtail growth in renewable power and ease the continued use of oil and gas-based heating installations. Energy think-tank Agora Energiewende called for these legislative proposals to be revisited, as well as suggesting investments in "future-proof" infrastructure, additional tenders for onshore wind power and "clear" CO2 limits for car fleets. And environmental group DUH announced it will take further legal action — following its successful court case against the government in January — if next week's climate action programme "obviously" fails to close the gaps identified in UBA's projections. Germany's government-appointed council of experts on climate change has until mid-May to verify UBA's projection data. By Chloe Jardine Send comments and request more information at feedback@argusmedia.com Copyright © 2026. Argus Media group . All rights reserved.
UK's grid, offtake risks threaten H2 FIDs: Utilities
UK's grid, offtake risks threaten H2 FIDs: Utilities
London, 13 March (Argus) — Grid connection delays, difficulty securing long-term hydrogen offtake deals and challenges sourcing compliant low-carbon power are the main barriers to UK renewable hydrogen projects reaching final investment decisions (FIDs), utilities RWE Generation and Statkraft said at the Hydrogen UK conference this week. RWE is developing large-scale renewable hydrogen projects in Germany , in the Netherlands and in the UK, leveraging its sizeable renewable portfolio in northwest Europe. RWE's UK green hydrogen schemes include a 100MW electrolyser at Pembroke and a 100MW plant at Grangemouth — the latter reduced from 200MW on weaker demand expectations . Both are shortlisted in the UK's second hydrogen allocation round (HAR2). RWE also plans a potential HAR3 bid with its Liverpool Bay project for connection to the HyNet network . HyNet partner Progressive Energy's chief executive Chris Manson Whitton said it would be a "three digit megawatt" electrolyser. But Claire Woodward, RWE's head of UK hydrogen project development, said grid connection dates are "very uncertain" and any timeline slips could affect HAR2 eligibility. Offtaker risk is the biggest hurdle, she said. A lack of hydrogen pipelines forces 15-year contracts with single local buyers, creating significant risks for producers, customers and financiers. Combined with delays to the HAR2 award decision , these factors make securing the board's FID approval difficult, she said. State-owned Low Carbon Contracts Company (LCCC) head of hydrogen Emma Bezuidenhout said HAR1 projects also face delays between signing subsidy contracts and FID because of offtake challenges. Electricity sourcing further complicates development. Statkraft's vice president of origination Duncan Dale said reliance on a single co-located renewable asset can leave electrolysers idle for too long, undermining profitability. Using grid electricity at uncertain carbon intensity risks non-compliance with the UK's low carbon hydrogen standard (LCHS) and HAR rules, Dale said, and hidden electrical infrastructure costs also offset any savings from co-located designs. Dale said developers need utility partners with "massive and diverse" renewable portfolios to stay profitable, limit spot market exposure and maintain LCHS compliance. Even with a 5:1 wind farm-to-electrolyser capacity ratio, he said, electrolysers would still use grid power 33pc of the time at uncertain price and carbon intensity. Dale said a 15-year fixed price power purchase agreement (PPA) with a creditworthy supplier is essential. A £20/MWh price increase over 15 years for 1 TWh/yr equates to £300mn in losses — "peanuts" compared with potential geopolitical driven swings, Dale said. Electricity accounts for 70–80pc of levelised hydrogen production costs, making cost control critical. By Chingis Idrissov Send comments and request more information at feedback@argusmedia.com Copyright © 2026. Argus Media group . All rights reserved.
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