Ontario government wants new gas plants to boost electricity production


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Ontario Gas Plant Expansion aims to boost grid reliability as nuclear refurbishments proceed, using natural gas to meet electricity demand, despite critics urging renewables, energy storage, and efficiency to reduce carbon emissions, protecting investment growth.

 

Key Points

Ontario plan to expand gas plants for reliability during nuclear outages, sparking debate on emissions and clean options.

✅ IESO data: gas share rose from 4% (2017) to 10.4% (2022).

✅ Government cites nuclear refurbishments and demand growth.

✅ Critics propose storage, wind, solar, and efficiency.

 

The Ontario government is preparing to expand gas-fired power plants in Ontario; a move critics say will make the province's electricity system dirtier and could eventually leave taxpayers on the hook.

The province is currently soliciting bids for additional gas-fired electricity generation, which means new gas plants get built, or existing gas plants get expanded. 

It's poised to be Ontario's biggest increase in the gas-fired power supply in more than a decade since the previous Liberal government scrapped two gas plants, in Mississauga and Oakville, at a cost the auditor general pegged at around $1 billion. 

Doug Ford's energy minister, Todd Smith, says Ontario needs gas plants now to help meet an expected surge in demand for electricity as the province faces a supply shortfall in the coming years and to provide power while some units of the province's nuclear stations are down for refurbishment. 

"It's really important to have natural gas as an insurance policy to keep the lights on and provide the reliability that we need," Smith said in an interview. 

"We need natural gas for the short term, especially to get us through these refurbishments."

The portion of Ontario's electricity supply that comes from natural gas matters for the environment and the province's economy. Manufacturing companies increasingly seek clean power that emits as little carbon dioxide as possible. 

The portion of Ontario's electricity supply that comes from natural gas matters for the environment and the province's economy. Manufacturing companies increasingly seek a power supply that emits as little carbon dioxide as possible. 

Increasing the amount of gas-fired generation in the electricity system puts Ontario's ability to attract such investments at risk as it complicates balancing demand and emissions across the grid, says Evan Pivnick, program manager with Clean Energy Canada, a think tank. 

"Building new natural gas (power plants) in Ontario today should be seen as an absolute last resort for meeting our energy needs," said Pivnick in an interview. 

Ontario's electricity system has among the lowest rates of CO2 emissions in North America, with roughly half of the annual supply provided by nuclear power, one-quarter from hydro dams, and one-tenth from wind turbines. 

However, Ontario's gas plants have produced a growing amount of electricity in recent years, despite an early report exploring a gas halt by the minister, and that trend will continue if new gas plants are built. 

In 2017, gas- and oil-fired generation provided just four percent of Ontario's electricity supply, according to figures from the provincial agency that manages the grid, the Independent Electricity System Operator (IESO). 

By 2022, that figure reached 10.4 percent. 

Ontario doesn't need new gas plants to meet the electricity demand, says Bryan Purcell, vice president of policy and programs at The Atmospheric Fund. This agency invests in low-carbon projects in the Greater Toronto and Hamilton Area. 

"We're quite concerned about where Ontario's electric grid is going," said Purcell. "Thankfully, there's still time to adjust course and look at other options." 

According to Purcell and Pivnick, those options to avoid gas could include power storage (in which excess generated energy is stored for later use when electricity demand rises), wind and solar projects, or energy efficiency and conservation programs.

 

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Romania moves to terminate talks with Chinese partner in nuke project

Romania Ends CGN Cernavoda Nuclear Deal, as Nuclearelectrica moves to terminate negotiations on reactors 3 and 4, citing the EU Green Deal, US partnership, NATO, and a shift to alternative nuclear capacity options.

 

Key Points

Romania orders Nuclearelectrica to end CGN talks on Cernavoda units 3-4 and pursue alternative nuclear options.

✅ Negotiations on Cernavoda units 3-4 to be formally terminated

✅ EU Green Deal and US partnership cited over security concerns

✅ Board to draft strategies for new domestic nuclear capacity

 

Romania's government has mandated the managing board of local nuclear power producer Nuclearelectrica to initiate procedures for terminating negotiations with China General Nuclear Power Group (CGN) on building two new reactors at the Cernavoda nuclear power plant, where IAEA safety reports continue to shape operations.

The government also mandated the managing board to analyse and draw up strategic options on the construction of new electricity generation capacities from nuclear sources, as other countries such as India take steps to get nuclear back on track in response to demand.

The company will negotiate the termination of the agreement signed in 2015 for developing and operating units 3 and 4 at Cernavoda, even as Germany turns away from nuclear within the European landscape. 

At the end of last month, Economy Minister Virgil Popescu said that the collaboration with the Chinese company couldn't continue as it has yielded no results in seven years, despite China's nuclear program expanding steadily elsewhere.

"We have a strategic partnership with the US, and we hold on to it, we respect our partners. We are members of the EU and Nato, even as Germany's final reactor closures unfold in Europe. Aside from that, I think that seven years since this collaboration with the Chinese company began is enough to realise that we can't move on," Popescu said at that time.

Liberal Prime Minister Ludovic Orban announced in January that the government would exit the deal with its Chinese partner. He invoked the European Union's Green Deal rather than security issues or cost concerns circulated previously as the main reason behind a potential end of the deal with CGN to expand Romania's only nuclear power plant, amid concerns that Europe is losing nuclear power when it needs energy.

In August last year, the US included CGN on a blacklist for allegedly trying to get nuclear technology from the US to be used for military purposes in China, even as nuclear cooperation with Cambodia expands in the region.

 

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ACCIONA Energía Launches 280 MW Wind Farm in Alberta

Forty Mile Wind Farm delivers 280 MW of renewable wind power in Alberta, with 49 Nordex turbines by ACCIONA Energía, supplying clean electricity to the grid, lowering carbon emissions, and enabling future 120 MW expansion.

 

Key Points

A 280 MW ACCIONA Energía wind farm in Alberta with 49 Nordex turbines, delivering clean power and cutting carbon.

✅ 280 MW via 49 Nordex N155 turbines on 108 m towers

✅ Supplies clean power to 85,000+ homes, reducing emissions

✅ Phase II could add 120 MW, reaching 400 MW capacity

 

ACCIONA Energía, a global leader in renewable energy, has successfully launched its Forty Mile Wind Farm in southern Alberta, Canada, amid momentum from a new $200 million wind project announced elsewhere in the province. This 280-megawatt (MW) project, powered by 49 Nordex turbines, is now supplying clean electricity to the provincial grid and stands as one of Canada's ten largest wind farms. It also marks the company's largest wind installation in North America to date. 

Strategic Location and Technological Specifications

Situated approximately 50 kilometers southwest of Medicine Hat, the Forty Mile Wind Farm is strategically located in the County of Forty Mile No. 8. Each of the 49 Nordex N155 turbines boasts a 5.7 MW capacity and stands 108 meters tall. The project's design allows for future expansion, with a potential Phase II that could add an additional 120 MW, bringing the total capacity to 400 MW, a scale comparable to Enel's 450 MW U.S. wind farm now in operation. 

Economic and Community Impact

The Forty Mile Wind Farm has significantly contributed to the local economy. During its peak construction phase, the project created approximately 250 jobs, with 25 permanent positions anticipated upon full operation. These outcomes align with an Alberta renewable energy surge projected to power thousands of jobs across the province. Additionally, the project has injected new tax revenues into the local economy and provided direct financial support to local non-profit organizations, including the Forty Mile Family & Community Support Services, the Medicine Hat Women’s Shelter Society, and the Root Cellar Food & Wellness Hub. 

Environmental Benefits

Once fully operational, the Forty Mile Wind Farm is expected to generate enough clean energy to power more than 85,000 homes, supporting wind power's competitiveness in electricity markets today. This substantial contribution to Alberta's energy mix aligns with ACCIONA Energía's commitment to sustainability and its goal of reducing carbon emissions. The project is part of the company's broader strategy to expand its renewable energy footprint in North America and support the transition to a low-carbon economy. 

Future Prospects

Looking ahead, ACCIONA Energía plans to continue its expansion in the renewable energy sector, as peers like TransAlta add 119 MW in the U.S. to their portfolios. The success of the Forty Mile Wind Farm serves as a model for future projects and underscores the company's dedication to delivering sustainable energy solutions, even as Alberta's energy future presents periodic headwinds. With ongoing developments and a focus on innovation, ACCIONA Energía is poised to play a pivotal role in shaping the future of renewable energy in North America.

The Forty Mile Wind Farm exemplifies ACCIONA Energía's commitment to advancing renewable energy, supporting local communities, and contributing to environmental sustainability, and it benefits from evolving demand signals, including a federal green electricity contract initiative in Canada that encourages clean supply. As the project continues to operate and expand, it stands as a testament to the potential of wind energy in Canada's clean energy landscape.

 

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Manchin Calls For Stronger U.S. Canada Energy And Mineral Partnership

U.S.-Canada Energy and Minerals Partnership strengthens energy security, critical minerals supply chains, and climate objectives with clean oil and gas, EV batteries, methane reductions, cross-border grid reliability, and allied trade, countering Russia and China dependencies.

 

Key Points

A North American alliance to secure energy, refine critical minerals, cut emissions, and fortify supply chains.

✅ Integrates oil, gas, and electricity trade for reliability

✅ Builds EV battery and critical minerals processing capacity

✅ Reduces methane, diversifies away from Russia and China

 

Today, U.S. Senator Joe Manchin (D-WV), Chairman of the Senate Energy and Natural Resources Committee, delivered the following remarks during a full committee hearing to examine ways to strengthen the energy and mineral partnership between the U.S. and Canada to address energy security and climate objectives.

The hearing also featured testimony from the Honorable Jason Kenney (Premier, Alberta, Canada), the Honorable Nathalie Camden (Associate Deputy Minister of Mines, Ministry of Energy and Natural Resource, Québec, Canada), the Honorable Jonathan Wilkinson (Minister, Natural Resources Canada) and Mr. Francis Bradley (President and CEO, Electricity Canada). Click here to read their testimony.

Chairman Manchin’s remarks can be viewed as prepared here or read below:

Today we’re welcoming our friends from the North, from Canada, to continue this committee’s very important conversation about how we pursue two critical goals – ensuring energy security and addressing climate change.

These two goals aren’t mutually exclusive, and it’s imperative that we address both.

We all agree that Putin has used Russia’s oil and gas resources as a weapon to inflict terrible pain on the Ukrainian people and on Europe.

And other energy-rich autocracies are taking note. We’d be fools to think Xi Jinping won’t consider using a similar playbook, leveraging China’s control over global critical minerals supply chains.

But Putin’s aggression is bringing the free world closer together, setting the stage for a new alliance around energy, minerals, and climate.
Building this alliance should start here in North America. And that’s why I’m excited to hear today about how we can strengthen the energy and minerals partnership between the U.S. and Canada.

I recently had the privilege of being hosted in Alberta by Premier Kenney, where I spent two days getting a better understanding of our energy, minerals, and manufacturing partnership through meetings with representatives from Alberta, Saskatchewan, the Northwest Territories, the federal government, and tribal and industry partners.

Canadians and Americans share a deep history and are natural partners, sharing the longest land border on the planet.

Our people fought side-by-side in two world wars. In fact, some of the uranium used by the Manhattan Project and broader nuclear innovation was mined in Canada’s Northwest Territories and refined in Ontario.

We have cultivated a strong manufacturing partnership, particularly in the automotive industry, with Canada today being our biggest export market for vehicles. Cars assembled in Canada contain, on average, more than 50% of U.S. value and parts.

Today we also trade over 58 terawatt hours of electricity, including green power from Canada across the border, 2.4 billion barrels of petroleum products, and 3.6 trillion cubic feet of natural gas each year.

In fact, energy alone represents $120 billion of the annual trade between our countries. Across all sectors the U.S. and Canada trade more than $2 billion per day.
There is no better symbol of our energy relationship than our interconnected power grid and evolving clean grids that are seamless and integral for the reliable and affordable electricity citizens and industries in both our countries depend on.

And we’re here for each other during times of need. Electricity workers from both the U.S. and Canada regularly cross the border after extreme weather events to help get the power back on.

Canada has ramped up oil exports to the U.S. to offset Russian crude after members of our committee led legislation to cut off the energy purchases fueling Putin’s war machine.

Canada is also a leading supplier of uranium and critical minerals to the U.S., including those used in advanced batteries—such as cobalt, graphite, and nickel.
The U.S-Canada energy partnership is strong, but also not without its challenges, including tariff threats that affect projects on both sides. I’ve not been shy in expressing my frustration that the Biden administration cancelled the Keystone XL pipeline.

In light of Putin’s war in Ukraine and the global energy price surge, I think a lot of us wish that project had moved forward.

But to be clear, I’m not holding this hearing to re-litigate the past. We are here to advance a stronger and cleaner U.S.-Canada energy partnership for the future.
Our allies and trading partners in Europe are begging for North American oil and gas to offset their reliance on Russia.

There is no reason whatsoever we shouldn’t be able to fill that void, and do it cleaner than the alternatives.

That’s because American oil and gas is cleaner than what is produced in Russia – and certainly in Iran and Venezuela. We can do better, and learn from our Canadian neighbors.

On average, Canada produces oil with 37% lower methane emissions than the U.S., and the Canadian federal government has set even more aggressive methane reduction targets.

That’s what I mean by climate and security not being mutually exclusive – replacing Russian product has the added benefit of reducing the emissions profile of the energy Europe needs today.

According to the International Energy Agency, stationary and electric vehicle batteries will account for about half of the mineral demand growth from clean energy technologies over the next twenty years.

Unfortunately, China controls 80% of the world’s battery material processing, 60% of the world’s cathode production, 80% of the world’s anode production, and 75% of the world’s lithium ion battery cell production. They’ve cornered the market.

I also strongly believe we need to be taking national energy security into account as we invest in climate solutions.

It makes no sense whatsoever for us to so heavily invest in electric vehicles as a climate solution when that means increasing our reliance on China, because right now we’re not simultaneously increasing our mining, processing, and recycling capacity at the same rate in the United States.

The Canadians are ahead of us on critical minerals refining and processing, and we have much to learn from them about how they’re able to responsibly permit these activities in timelines that blow ours out of the water.

I’m sure our Canadian friends are happy to export minerals to us, but let me be clear, the United States also needs to contribute our part to a North American minerals alliance.

So I’m interested in discussing how we can create an integrated network for raw minerals to move across our borders for processing and manufacturing in both of our countries, and how B.C. critical minerals decisions may affect that.

I believe there is much we can collaborate on with Canada to create a powerful North American critical minerals supply chain instead of increasing China’s geopolitical leverage.

During this time when the U.S., Canada, and our allies and friends are threatened both by dictators weaponizing energy and by intense politicization over climate issues, we must work together to chart a responsible path forward that will ensure security and unlock prosperity for our nations.

We are the superpower of the world, and blessed with abundant energy and minerals resources. We cannot just sit back and let other countries fill the void and find ourselves in a more dire situation in the years ahead.

We must be leaning into the responsible production of all the energy sources we’re going to need, and strengthening strategic partnerships – building a North American Energy Alliance.

 

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City officials take clean energy message to Georgia Power, PSC

Georgia Cities Clean Energy IRP Coalition unites Savannah, Atlanta, Decatur, and Athens-Clarke to shape Georgia Power's Integrated Resource Plan, accelerating renewables, energy efficiency, community solar, and coal retirements through Georgia Public Service Commission hearings.

 

Key Points

Georgia cities working to steer Georgia Power's IRP toward renewables, energy efficiency, and community solar.

✅ Targets coal retirements and doubling renewables by 2035

✅ Advocates data access, transparency, and energy efficiency

✅ Seeks affordable community solar options for low-income customers

 

Savannah is among several Georgia cities that have led the charge forward in recent years to push for clean energy. Now, several of the state's largest municipalities are banding together to demand action from Georgia's largest energy provider.

Hearings regarding Georgia Power's Integrated Resource Plan (IRP) happen every three years, but this year for the first time the cities of Savannah, Decatur, Atlanta and Athens-Clarke and DeKalb counties were at the table.

"It's pretty unprecedented. It's such an important opportunity to get to represent ourselves and our citizens," said City of Savannah Energy Analyst Alicia Brown, the Savannah representative for the Georgia Coalition for Local Governments.

The IRP, which essentially maps out how the company will use its various forms of energy over the next 20 years was filed with the Georgia Public Service Commission (GPSC) in January, the 200-page IRP outlines Georgia Power's plans to shutter nearly all Georgia Power-controlled coal units, similar to Tucson Electric Power's coal exit timelines elsewhere, which could begin later this year.

The company is also planning to double its renewable energy generation by 2035. The IRP also outlines plans for several programs, including an Income-Qualified Community Solar Pilot, reflecting momentum for community energy programs in other states as well.

During the hearings the coalition, alongside the other groups, had the ability to question Georgia Power officials about the plan to include the proposed increase per kilowatt for the company's Simple Solar program, Behind-the-Meter Solar program study and various other components, amid debates over solar strategy in the South that could impact lower income customers.

"The established and open IRP process is central to effective, long-term energy planning in Georgia and is part of our commitment to 2.7 million customers to deliver clean, safe, reliable and affordable energy. In continuing our longstanding relationship with the City of Savannah, we welcome their interest and participation in the IRP process," John Kraft, Georgia Power spokesman said in an email.

Brown said the coalition's areas of interest fall into three categories: energy efficiency and demand response, data access and transparency and renewable energy for citizens as well as the governments in the coalition.

"We have these renewable goals and just the way the current regulations are set, the way the current laws are on the books, and developments like consumer choice in California show how policy shifts can reshape utility markets, it's very challenging for us to meet those renewable energy goals without Georgia Power setting up programs that are workable for us," she said.

The city of Savannah is already taking action locally to reduce carbon emissions and move toward clean and renewable energy through the 100% Savannah Clean Energy Plan, which was adopted by Savannah City Council in December.

The plan aims to achieve 100% renewable electricity community-wide by 2035 and 100% renewable energy for all energy needs by 2050.

Council previously approved the 100% Clean Energy Resolution needed to develop the plan in March 2020, making Savannah the fifth city in the state to pledge to pursue a lower carbon future to fight climate change.

The final plan includes 45 strategies that fall into five categories: energy efficiency; renewable energy; transportation and mobility; community and economic development; and education and engagement.

Brown said the education and engagement component is central to the plan, but the pandemic has hindered community education and awareness efforts, and utilities have warned customers about pandemic-related scams that complicate outreach, something the city hopes to catapult in the coming weeks.

"With the 100% Savannah resolution passing right before the pandemic, we haven't had as many opportunities to raise awareness about the initiative and to educate the public about clean energy as we would like. This transition will present a lot of opportunities for our communities, but only if people know that they are there to be taken," she said.

"... We also want to engage the community so that they feel like they are developing this vision for a healthy, prosperous, clean community alongside us. It's not just us telling them, 'we're going to have a clean energy future and it's going to look like this,' but really helping them to develop and realize a collective vision for what 100% Savannah should be."

The final round of IRP hearings are scheduled for next month. Those hearings will allow the coalition and other groups to put witnesses on the stand who will make the case for why Georgia Power's IRP should be different, Brown said.

In June, Georgia Power, following a June bill reduction for customers, will have a chance to offer rebuttal testimony and will again be subject to cross examination. Shortly after those hearings, the parties will join together for the settlement process, a sort of compromise on the plan that the commission will vote on toward the beginning of July.

 

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External investigators looking into alleged assaults by Manitoba Hydro workers

Manitoba Hydro Allegations Investigation reveals RCMP and OPP probes into 1960s abuses in northern Manitoba, affecting Fox Lake Cree Nation, citing racism, discrimination, sexual assault, and oversight by the IIU and Clean Environment Commission.

 

Key Points

A coordinated probe into historic abuses tied to Manitoba Hydro projects, led by OPP and IIU after RCMP referral.

✅ OPP to investigate historical cases involving Hydro staff and contractors.

✅ IIU to examine any allegations implicating Manitoba RCMP officers.

✅ Findings follow CEC report on racism and abuse near Fox Lake.

 

Manitoba RCMP have called in outside investigators to probe alleged assaults linked to hydro projects in the province’s north during the 1960s.

RCMP say any historical criminal investigations involving Manitoba Hydro employees or contractors will be handled by the Ontario Provincial Police.

The Independent Investigation Unit of Manitoba, the province’s police watchdog, will investigate any allegations involving RCMP officers.

A report released last month by an arm’s-length review agency outlined racism, discrimination and sexual abuse at the Crown-owned utility’s work sites dating back decades, while projects like Site C COVID-19 updates provide contemporary examples of reporting.

Much of the development at that time was centered around the community of Gillam and the nearby Fox Lake Cree Nation.

The report said the presence of a largely male construction workforce led to the sexual abuse of Indigenous women, some of whom said their complaints were ignored by the RCMP, and in a different context, Hydro One worker injury highlights safety risks in the sector.

Premier Brian Pallister says his government is taking the right approach to addressing alleged sexual assaults and racism by Manitoba Hydro workers against members of a remote northern First Nation, while pandemic cost-cutting at Manitoba Hydro has shaped recent operations.

Pallister made his first public comments about the allegations after a private meeting with Prime Minister Justin Trudeau on Tuesday evening, as COVID-19 reshaped Saskatchewan and other Prairie priorities were in focus.

The allegations, made by members of Fox Lake Cree Nation, were revealed in a report produced by the Clean Environment Commission. The report was released by the provincial government in August, although it was completed in May.

Allegations against Manitoba Hydro workers: What you need to know

"My reaction would be that's deplorable behaviour, and I have to admit, my puzzlement is why this wasn't investigated sooner or didn't come to light sooner," Pallister said, adding that he believes his government has taken the right approach by referring the information to the RCMP.

Some members of Fox Lake Cree Nation say the government didn't give them any advance notice of the release of the report, so the community was traumatized when it hit the news.

Pallister said his government didn't want to delay the release of the report.

'Pure trauma': Fox Lake members stricken after hasty release of troubling report

"I think the right thing to do is release the report. A lot of this information was in the public domain over the last number of weeks and months anyway. It wasn't the case of it being new in that respect," he said.

However, he accepted criticism of the timeline of the report's release.

"I would rather accept those criticisms, than accept the argument that we were in any way covering up information that is important to be released," he said.

Fox Lake Chief Walter Spence has said he expects Pallister to visit the community.

The premier said Tuesday he was not sure of the effectiveness of such a trip.

"I think most of the communities would prefer that there be electricity jobs for young Canadians created in their communities, that there be better water, many other tangible things rather than symbolism," he said.

"That's what I'm hearing and I've been in dozens of First Nations communities in the last two years."

 

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Updated Germany hydrogen strategy sees heavy reliance on imported fuel

Germany Hydrogen Import Strategy outlines reliance on green hydrogen imports, expanded electrolysis capacity, IPCEI-funded pipelines, and industrial decarbonization for steel and chemicals to reach climate-neutral goals by 2045, meeting 2030 demand of 95-130 TWh.

 

Key Points

A plan to import 50-70% of hydrogen by 2030, backing green hydrogen, electrolysis, pipelines, and decarbonization.

✅ Imports cover 50-70% of 2030 hydrogen demand

✅ 10 GW electrolysis target with state aid and IPCEI

✅ 1,800 km H2 pipelines to link hubs by 2030

 

Germany will have to import up to 70% of its hydrogen demand in the future as Europe's largest economy aims to become climate-neutral by 2045, an updated government strategy published on Wednesday showed.

The German cabinet approved a new hydrogen strategy, setting guidelines for hydrogen production, transport infrastructure and market plans.

Germany is seeking to expand reliance on hydrogen as a future energy source to bolster energy resilience and cut greenhouse emissions for highly polluting industrial sectors that cannot be electrified such as steel and chemicals and cut dependency on imported fossil fuel.

Produced using solar and wind power, green hydrogen is a pillar of Berlin's plan to build a sustainable electric planet and transition away from fossil fuels.

But even with doubling the country's domestic electrolysis capacity target for 2030 to at least 10 gigawatts (GW), Germany will need to import around 50% to 70% of its hydrogen demand, forecast at 95 to 130 TWh in 2030, the strategy showed.

"A domestic supply that fully covers demand does not make economic sense or serve the transformation processes resulting from the energy transition and the broader global energy transition overall," the document said.

The strategy underscores the importance of diversifying future hydrogen sources, including potential partners such as Canada's clean hydrogen sector, but the government is working on a separate strategy for hydrogen imports whose exact date is not clear, a spokesperson for the economy ministry said.

"Instead of relying on domestic potential for the production of green hydrogen, the federal government's strategy is primarily aimed at imports by ship," Simone Peter, the head of Germany's renewable energy association, said.

Under the strategy, state aid is expected to be approved for around 2.5 GW of electrolysis projects in Germany this year and the government will earmark 700 million euros ($775 million) for hydrogen research to optimise production methods, research minister Bettina Stark-Watzinger said.

But Germany's limited renewable energy space will make it heavily dependent on imported hydrogen from emerging export hubs such as Abu Dhabi hydrogen exports gaining scale, experts say.

"Germany is a densely populated country. We simply need space for wind and photovoltaic to be able to produce the hydrogen," Philipp Heilmaier, an energy transition researcher at Germany energy agency, told Reuters.

The strategy allows the usage of hydrogen produced through fossil energy sources preferably if the carbon is split off, but said direct government subsidies would be limited to green hydrogen.

Funds for launching a hydrogen network with more than 1,800 km of pipelines in Germany are expected to flow by 2027/2028 through the bloc's Important Projects of Common European Interest (IPCEI) financing scheme, as the EU plans to double electricity use by 2050 could raise future demand, with the goal of connecting all major generation, import and storage centres to customers by 2030.

Transport Minister Volker Wissing said his ministry was working on plans for a network of hydrogen filling stations and for renewable fuel subsidies.

Environmental groups said the strategy lacked binding sustainability criteria and restriction on using hydrogen for sectors that cannot be electrified instead of using it for private heating or in cars, calling for a plan to eventually phase-out blue hydrogen which is produced from natural gas.

Germany has already signed several hydrogen cooperation agreements with countries such as clean energy partnership with Canada and Norway, United Arab Emirates and Australia.

 

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