H₂-ready Power Plants: The Key to Climate-Neutral Energy Supply

The ground-breaking ceremony for the third ‘fuel switch’ project took place at the Heilbronn power plant at the end of February 2024. A hydrogen-compatible gas and steam turbine plant is to replace the coal-fired unit of the combined heat and power plant there. (Source: EnBW)

Germany aims to become a climate-neutral industrial nation by 2045. This energy transition brings significant challenges. The entire energy system must be transformed to reduce CO2 emissions. Key considerations include backup systems for periods of low renewable energy production, ensuring supply security during the transition, and the investment costs associated with the transformation. H₂-ready power plants could offer a solution that intelligently links gas infrastructure, supply security, and climate protection. How does this technology work, and what are the relevant legal frameworks?

Background: Development of the Power Plant Strategy

German energy policy has undergone a profound transformation process for years. After phasing out nuclear and coal power, alternative energy carriers and flexible power plant solutions became the focus of strategic considerations. The power plant strategy emerged as a response to the challenges of the energy transition. In early February 2024, the federal government agreed on a strategy draft. It aims to create incentives for building hydrogen-capable gas power plants. A total of 12.5 gigawatts of power plant capacity, including two gigawatts for comprehensive modernization of existing gas power plants, will be put to tender. Long-term electricity storage is also planned. Between 2035 and 2040, these are to be fully converted to hydrogen operation.

The Federal Government's power plant strategy (source: BMWK)

Core objectives of the power plant strategy:

Ensuring energy supply security

Decarbonization of the electricity sector

Creating flexible backup capacities

Integration of renewable energies

The new power plants will be financed through the Climate and Transformation Fund (KTF). According to coalition circles, the costs are approximately 16 billion euros for the next roughly 20 years.

The implementation of the power plant strategy will be regulated by a new Power Plant Security Act.

Conversion of a power plant from coal to natural gas to hydrogen (source: EnBW)

H₂-ready Power Plants

H₂-ready power plants are modern gas power plants designed to operate with both natural gas and hydrogen. This technology aims to enable a gradual transition to climate-neutral energy supply.

Converting traditional gas power plants requires several technical modifications, as hydrogen and natural gas (primarily composed of methane) behave very differently. Hydrogen has different combustion properties, flame speed, and self-ignition delay time.

Therefore, modifications to combustion chambers, turbine technology adaptations, installation of special hydrogen valves, and ensuring all materials are hydrogen-compatible are necessary.

Advantages of H₂-ready power plants:

Flexibility: Use of various energy carriers

Grid stability: Backup function for volatile renewable energies

Infrastructure preservation: Continued use of existing gas infrastructure

Conversion and Hydrogen Blending

The Süd gas-fired power plant in Leipzig is H₂-ready (source: Stadtwerke Leipzig)

Conversion and hydrogen admixture

The transition from 100 percent natural gas to 100 percent hydrogen typically occurs in several stages:

Low blending (up to 10 percent): Requires no significant modifications and involves low investment costs with immediate CO2 reduction
Medium blending (10-30 percent): Requires moderate technical adjustments but enables significant emission reduction
High blending (30-50 percent): Prepares for full conversion, requiring significant technical retrofitting
100 percent hydrogen operation: Requires complete power plant conversion, offering a future-proof energy infrastructure and complete decarbonization

Locations

New power plants will be built at "system-serving" sites, predominantly in southern Germany, where significant grid stabilization interventions are currently necessary. Without federal government incentives, new gas power plants would likely be concentrated in northern and eastern federal states where hydrogen might be more readily or cost-effectively available.

Several H₂-ready gas power plants have already been announced, including in:

Werne (North Rhine-Westphalia)

Schwarze Pumpe Industrial Park (Brandenburg)

Gelsenkirchen (North Rhine-Westphalia)

Ingelheimer Aue in Mainz

Heilbronn (Baden-Württemberg)

Bonn (North Rhine-Westphalia)

Hamm (North Rhine-Westphalia)

In Leipzig, the first gas turbine power plant capable of generating electricity and heat 100 percent from hydrogen went into operation in October 2023. According to the Federal Ministry of Education and Research (BMBF), it is one of the lowest-emission gas turbine power plants worldwide.

Power Plant Security Act: Legal Framework

The Power Plant Security Act forms the legal basis for transforming and modernizing the German power plant landscape. It defines:

Safety standards for new power plant types

Grid stability requirements

Framework conditions for alternative energy carrier use

Transition periods for existing power plant infrastructures

Conclusion: A Bridge Technology with Potential

H₂-ready power plants represent a crucial element of the energy transition. They connect supply security with climate protection goals and offer a step-by-step approach to decarbonizing the German energy system. Additionally, these H₂-ready gas power plants present opportunities for German industry, valve, and seal manufacturers, as old coal-fired power plants are shut down and new H₂-ready plants are being tendered.