No end in sight for natural gas

07.10.2025

Source: E & M powernews

The gas industry met in Berlin for the Handelsblatt conference. The main topics were the future of natural gas and the wait for hydrogen.

On September 16 and 17, representatives from business, politics and research discussed the future of the molecule in the energy system. As hydrogen is slow in coming, natural gas will remain the backbone of Europe's energy supply for many years to come, they concluded.

A political panel discussion largely focused on the presentation of the monitoring report by Federal Minister of Economics Katherina Reiche (CDU). Nina Scheer, energy policy spokesperson for the SPD parliamentary group, welcomed the minister's commitment to climate neutrality by 2045. However, this must also be supported by political measures, which she had not yet heard enough about.

As a member of the governing coalition, she sees a capacity of 20,000 MW as the absolute maximum for the construction of new gas-fired power plants. No more should be built than is absolutely necessary for security of supply in order to avoid cementing a new dependency on fossil fuels. "Every megawatt must be well justified," she demanded of the coalition partner. She emphasized the cost efficiency of energy policy, especially when it comes to promoting the ramp-up of hydrogen.

Andreas Lenz, energy policy spokesman for the CDU parliamentary group, shares Minister Reiche's view that backup power plants should be built first. Only these would guarantee security of supply in the event of insufficient wind and sun. And finally, the natural gas power plants could be converted to hydrogen in the future.

Preventing industrial migration

Michael Kellner, energy policy spokesman for the Bündnis 90/Die Grünen parliamentary group, took part in the discussion on behalf of the opposition. He was satisfied with the results of the report. "The problem is not the monitoring report, but the minister's lack of courage in the face of the conclusions and political measures drawn from it," said Kellner.

It would be wrong to regard the current slow rise in electricity demand as fatal, as well as the impending exodus of energy-intensive industry. He advised a new round of contracts for difference to help industry, particularly sectors such as steel and cement, to switch to climate-friendly technologies and keep them in Germany.

Gas supply secure for the winter

Bernhard Kluttig attended the conference on behalf of the Federal Ministry for Economic Affairs and Energy (BMWE). The head of the department for economic stabilization, energy security, gas and hydrogen infrastructure at the BMWE was convinced that gas storage facilities will be well filled for the coming winter even without government intervention. A purely national view is of course too short-sighted in a connected Europe, which is why there are EU targets, which are also monitored.

However, we must be vigilant against possible attacks on the gas infrastructure, particularly through acts of sabotage. This applies above all to the three undersea pipelines for gas from Norway. It is therefore necessary to actually expand the planned LNG terminals, as up to 70 percent of Germany's demand could then be imported as LNG if necessary.

The existing security authorities would have to be better interlinked and work together to ward off threats to critical infrastructure. "We are still a little behind the curve and can learn a lot from our Nordic neighbors such as Finland and Norway," said the head of department.

Hydrogen core network is coming for sure

Even though the state currently owns the gas importers Sefe and Uniper, it does not interfere in the operational business. Nevertheless, Kluttig would like to see more long-term supply contracts and fewer purchases on the spot market, as is currently the case. If the EU really does import fuels such as gas for 750 billion dollars, as demanded by US President Trump, it could also be sold on the global market if there is a surplus, said Kluttig.

Hydrogen is certainly a gas of the future, even if some projects are currently being canceled or delayed. The hydrogen core network is definitely coming, said Kluttig. For example, 400 kilometers of the Opal gas pipeline from Lubmin to the south will be rededicated this year. He believes that climate protection contracts (CfD) are a good way to create investment security for companies. Economics Minister Reiche has also emphasized this.

Finally starting the heating transition

Due to the slow heating transition, natural gas heating systems continue to dominate in households and businesses. "If gas heating systems that run for 30 years continue to be installed today, there will be no heating transition to renewable energies by 2045," warned Annika Rittmann, spokesperson for the federal level of the Fridays for Future climate protection initiative. At the gas congress, she called for clear political guidelines as to when natural gas may no longer be used for heating. Otherwise, a lot of money would continue to flow into the wrong channels. In addition, gas users will have to pay more and more money for CO2 levies in future, which is not being communicated sufficiently.

For the German Association of Energy and Water Industries (BDEW), Co-Managing Director Kirsten Westphal emphasized that local authorities and energy companies also need clarity. At the same time, however, they are bound by their obligations as suppliers. Natural gas is more climate-friendly than coal or oil. Renewable alternatives are also initially more expensive in the district heating sector, which is why there must be reliable state support for the implementation of the municipal heating transition.

Felix Matthes, Research Coordinator Energy & Climate at the Öko-Institut, also criticized the fact that without clear statements from politicians on the heating transition, neither local authorities nor homeowners would be able to act. Unfortunately, apart from the statement in the coalition agreement to amend the Building Energy Act (GEG), nothing has yet been heard from the German government. He expects that the GEG amendment will probably not come until spring 2026.

2025 worst year for heating engineers

"We are heading for the worst heating year in decades," lamented Markus Staudt, Managing Director of the Federal Association of the German Heating Industry (BDH). Due to the unclear policy and funding landscape, nothing is happening in the boiler room at the moment. This is dramatic for heating companies, but also for the essential work that is piling up. "We would have to replace 1 million appliances every year, most of which are 30 years old," Staudt described.
At last year's rate of expansion, the industry would need 38 years to complete the heating changeover, which is far too long for the goal of climate neutrality by 2045. Building renovation is also lagging behind all goals and requirements, Staudt lamented. This makes heating, for example with a heat pump, unnecessarily energy-intensive and expensive.

No tax revenue without industry

Andreas Schick, Managing Director of Netze-Gesellschaft Südwest, sees the heating turnaround from the perspective of network operators. "Municipal heat planning alone is not enough, there must also be enough money for implementation," he said. In view of the poor financial situation of many municipalities, they would not be able to cope without aid. In addition, a new heating network is only profitable if enough customers connect to it.

"As long as heating with gas is half as expensive as district heating, it will be difficult to convince people to do so," said Schick. It is also problematic for the current electricity grid to cope with the massive increase in the connection of heat pumps. "However, expanding the grid is expensive and takes longer, also due to the delivery times for important components such as transformers and the like," he described. In his grid area, industrial customers are already dropping out. This is leading to less tax revenue, more unemployment and a lack of partners for waste heat utilization, Schick stated.

Author: Susanne Harmsen