Open Letter

Dear Executive Vice-President, 

In the coming months, we will be welcoming several legislative initiatives launched by the European Commission to deliver the ambition enshrined in the European Green Deal. As active players in the energy market, we remain committed to achieve the EU Energy and Climate Targets, and stand decided to continue making efforts to reach carbon neutrality by 2050.  
The EU Hydrogen Strategy released in July 2020 outlines the Commission’s vision to deploy a European-wide hydrogen economy following a stepwise approach and using clean hydrogen to decarbonise selected sectors gradually. While we support its overall vision, we would like to highlight further the importance of blending hydrogen in gas networks.  
The existing gas transmission and distribution networks, together with the associated facilities connected to them, will be an essential enabling factor in delivering the decarbonisation of the European economy and the goals of the EU Hydrogen Strategy. The retrofitting1 and repurposing2 of existing gas networks can be combined and complemented with the construction of new dedicated hydrogen infrastructure, so that three hydrogen deployment options can co-exist where needed. 
Whilst blending is expected to be a transitional solution, it has multiple advantages which are relevant in the context of the EU Hydrogen Strategy: 

• Using gas-hydrogen blends in the short and medium term achieves a larger GHG reduction at a lower systemic cost than by using only new dedicated infrastructure to deliver hydrogen.
• It allows for building-up hydrogen production capacity and developing economies of scale that will foster a positive business case for the transition to a hydrogen system.
• As for sector coupling between electricity and gas, it enhances system-wide resilience by integrating surplus intermittent renewable electricity, reducing power network congestion and providing short-term flexibility and energy storage.
• Injecting hydrogen into gas transmission and distribution pipelines provides renewable and low-carbon energy to consumers currently connected to the gas network.
• Blending grants market access, on a swift and cost-efficient manner, for decentralised hydrogen producers who locate their facilities in areas with high renewable energy resources but distant from consumption centres and dedicated hydrogen networks. Furthermore, they can benefit from participating in the pan-European integrated gas market.
• Hydrogen blending can be an especially cost-effective transitional option in those European regions without parallel or duplicated networks, or without (potentially) available gas infrastructure capacity, which can be easily repurposed to hydrogen in the short-term.
• Regarding production of thermal energy, hydrogen preserves its value when mixed with natural gas.

Hydrogen admixtures in the gas network should be properly recognised within the European energy regulatory framework in order to enable its rollout. A robust system of certificates/guarantees of origin (GOs) would allow monetisation of hydrogen injected while reducing the need for public support. Additionally, to facilitate intra-EU cross-border trade of gas blends, concrete interoperability measures at technical and commercial levels would be required.  
The EU’s competitiveness and its lead in the hydrogen economy is at stake. In view of the upcoming legislative developments expected for 2021 and beyond, we are ready to further engage with the European Commission on the role of blending in the transition to an EU hydrogen ecosystem.   

Yours sincerely 

List of Signatories: 

1.    2G Energy AG, Christian Grotholt, CEO
2.    AGGM Austrian Gas Grid Management AG, Edwin Kaufmann and Bernhard Painz, Executive Board members
3.    Amber Grid, Nemunas Biknius, CEO
4.    Baker Hughes, Rod Christie, CEO, Turbomachinery & Process Solutions and Executive Vice President
5.    bayernets GmbH, Dr. Matthias Jenn, CEO
6.    BBG Bahía Bizkaia Gas, Javier López, CEO
7.    BDEW, Kerstin Andreae, Chairwoman of the Management Board and Member of the Board of Directors
8.    BDR Thermea Group, Bertrand Schmitt, CEO
9.    Bosch Thermotechnik, Jan Brockmann, President
10.    Centrax Ltd., Harry WG Trump, Director Business Development
11.    Challoch Energy BV, Dr. Simon Minett, Managing Director
12.    COGEN Europe, Hans Korteweg,Managing Director
13.    Conexus Baltic Grid, Uldis Bariss, CEO
14.    DESFA, Maria Rita Galli, CEO
15.    DEW21 Dortmunder Energie- und Wasserversorgung GmbH, Peter Flosbach, Technical Director
16.    DVGW Deutscher Verein des Gas- und Wasserfaches e.V., Prof. Dr. Gerald Linke, Chairman of the Board of Directors
17.    Enagás S.A., Marcelino Oreja, CEO
18.    EnBW - Energie Baden-Württemberg AG, Dr. Frank Mastiaux, CEO
19.    Energie Graz GmbH & Co. KG, Boris Papousek and Werner Ressi, Managing Directors
20.    Energienetze Bayern GmbH & Co. KG, Michael Schneider, CEO
21.    Energienetze Mittelrhein GmbH & Co. KG, Dr. Andreas Hoffknecht (Technical Director), Udo Scholl (Commercial Director)
22.    Energienetze Steiermark GmbH, Manfred Pachernegg and Franz Strempfl, Managing Directors
23.    e-netz Südhessen AG, Holger Klein, Technical Director
24.    erdgas schwaben GmbH, Markus Last, CEO
25.    Erdgas Südwest GmbH, Ralf Biehl (CEO) and Hans-Joachim Seigel (CFO)
26.    ESWE Versorgungs AG, Jörg Höhler, COO

27.    EUGINE - European Engine Power Plants Association, Ralf Wezel, Secretary General
28.    Eurogas, Dr. James Watson, Secretary General
29.    European Heating Industry (EHI), Federica Sabbati, Secretary General
30.    Eustream, Rastislav Ňukovič, General Director
31.    EUTurbines, Ralf Wezel, Secretary General
32.    Federal Association of Sanitary, Heating and Ventilation Technician in the Austrian Federal Economic Chamber, Michael Mattes (President) and Christian Atzmueller (Managing Director)
33.    FGSZ, Szabolcs I. Ferencz, Chairman - CEO
34.    FGW - Fachverband der Gas- und Wärmeversorgungsunternehmungen, Michael Mock, Managing Director
35.    Fluvius, Frank Vanbrabant, CEO
36.    Galp Gás Natural Distribuição, Gabriel Sousa, CEO
37.    Gas Connect Austria, Harald Stindl and Stefan Wagenhofer, Managing Directors
38.    Gas Extremadura, David Aguilera, General Director
39.    GAZ-SYSTEM, Tomasz Stępień, CEO
40.    Gaz Réseau Distribution France (GRDF), Frédéric Martin, Deputy CEO
41.    GD4S, Paolo Gallo, President
42.    General Electric (GE), Martin O’Neill, Senior Executive, Product Management, GE Gas Power
43.    GEODE, Carmen Gimeno, Secretary General
44.    HEXIS GmbH, Dr. Alexander Schuler, CEO
45.    inetz GmbH, Jörg Scheibe, CEO
46.    Italgas, Paolo Gallo, CEO
47.    ITM Power, Graham Cooley, CEO
48.    Lhyfe, Matthieu Guesné, CEO
49.    Madrileña Red de Gas, Alejandro Lafarga, CEO
50.    Marcogaz, Thea Larsen, President
51.    MFGK (Hungarian Gas Trade Ltd.), László Zoltán Fritsch, CEO
52.    MFGT (Hungarian Gas Storage Ltd.), Ákos Kriston, CEO
53.    MVM Group, György Kóbor, Chairman and CEO
54.    MVV Netze GmbH, Volker Glätzer, Managing Director
55.    Naturgy, Pedro Larrea, COO Energy Management and Networks
56.    NBB Netzgesellschaft Berlin-Brandenburg mbH & Co. KG, Maik Wortmeier, Chairman of the Management Board
57.    Nedgia, Narcís de Carreras, CEO
58.    NET4GAS, Andreas Rau, CEO
59.    Netz Burgenland GmbH, Florian Pilz and Wolfgang Trimmel, Managing Directors
60.    Netz Niederösterreich GmbH, Werner Hengst and Heinrich Bittner, Managing Directors
61.    Netz OÖ GmbH, Manfred Hofer and Michael Haselauer, CEOs
62.    Nortegas, Javier Contreras, CEO
63.    OsthessenNetz GmbH, Matthias Hahner and Andreas Bug, CEOs
64.    ÖVGW – Austrian Association for Gas and Water, Michael Haselauer, President
65.    PACE Project, Hans Korteweg, Coordinator
66.    Plinovodi, Marjan Eberlinc (General Manager) and Sarah Jezernik (Deputy General Manager)
67.    RAG Austria AG, Markus Mitteregger (CEO) and Michael Längle (CFO)
68.    Redexis, Cristina Ávila, CEO
69.    Reganosa, Roberto Felipe Rodríguez, COO
70.    Remeha GmbH, Heinz-Werner Schmidt (Managing Director) and Franz Killinger (Sales Director)
71.    REN, Rodrigo Costa, Chairman and CEO
72.    RESA SA Intercommunale, Gil Simon, CEO
73.    Rheinische NETZGesellschaft mbH, Dr. Ulrich Groß, CEO
74.    SachsenNetze GmbH, Dr. Steffen Heine and Dr. Kathrin Kadner, CEOs
75.    Saggas, Santiago Álvarez, CEO
76.    Salzburg Netz GmbH, Herwig Struber, Johannes Walsberger, Managing Directors
77.    SENERTEC Kraft-Wärme-Energiesysteme GmbH, Dr. Josef Wrobel and Heinz-Werner Schmidt, Managing Directors
78.    Sibelga, Marie-Pierre Fauconnier, CEO
79.    SNAM, Marco Alverà, CEO

80.    Solidpower GmbH, Gerald Neuwirth, Managing Director
81.    Stadtwerke Bochum Holding GmbH, Dietmar Spohn, Managing Director
82.    Stadtwerke Bregenz GmbH, Dr. Wolfgang Winkler, Managing Director
83.    Stadtwerke Karlsruhe GmbH, Dr. Olaf Heil, Managing Director
84.    Stadtwerke München GmbH, Dr. Florian Bieberbach, CEO
85.    Sunfire Fuel Cells GmbH, Andreas Frömmel, Managing Director
86.    SWM Infrastruktur GmbH & Co. KG, Stefan Dworschak, Managing Director
87.    TAG- Trans Austria Gasleitung GmbH, Rudolf Starzer and Daniele Gamba, Managing Directors
88.    TAP - Trans Adriatic Pipeline AG, Luca Schieppati, Managing Director
89.    Thüga Aktiengesellschaft, Michael Riechel, CEO
90.    TIGAS-Erdgas Tirol GmbH, Dr. Philipp Hiltpolt and Georg Tollinger, Managing Directors
91.    Vaillant Group, Dr. Norbert Schiedeck, CEO
92.    Viessmann Group, Maximilian Viessmann, Co-CEO
93.    VNG AG, Ulf Heitmüller, CEO
94.    Wiener Netze GmbH, Hermann Nebel and Gerhard Fida, Managing Directors

Download:
Open Letter on Hydrogen Blending 21-03-17.pdf