The German Federal Government has agreed to tender 12.5 GW of gas-fired plants that can switch to hydrogen, as well as 500 MW long-term storage, as part of the power plant strategy, which is included in the country’s economic growth package. In the first phase, 5 GW of hydrogen-ready gas-fired plants, 2 GW for retrofitting old gas-fired power plants to use hydrogen, 500 MW of hydrogen-fired plants, and 500 MW of long-term storage will be put out for tender. In the second phase, an additional 5 GW of hydrogen-ready gas-fired plants will be proposed. The tenders, which should begin by late 2024 / early 2025, will offer subsidies covering investments costs and the difference in operating costs between hydrogen and natural gas for 800 full-load hours per year. The project, which should be predominantly built in southern Germany, are expected to switch to hydrogen within 8 years. The scheme secured approval from the European Commission in June 2024.
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