Press release , Jan 31, 2025

Gas and Hydrogen Industry Welcomes Extension of the CHP Act

This morning, the German Bundestag passed the extension of the Act for the Promotion of Combined Heat and Power (CHP). For Dr. Timm Kehler, CEO of Die Gas- und Wasserstoffwirtschaft, this represents an important step for climate protection and energy security:

"The extension of the Combined Heat and Power Act (CHP Act) is an important signal for securing the energy supply and transforming the energy system. The gas and hydrogen industry welcomes this decision, as it provides planning certainty and lays the foundation for the further expansion of CHP technology.

However, the planned adjustments do not go far enough to ensure that CHP remains a necessary technology for the energy transition in the long term. The flexibility and efficiency of CHP plants are essential for integrating renewable energies and maintaining a stable energy supply. CHP plants already provide around 22 percent of Germany’s electricity and 17 percent of its heat, making them a key pillar of a secure and cost-efficient energy system.

It is positive that the planned support for new CHP plants from 2026 onwards has been confirmed and that it has been clarified that already approved or ordered plants will remain eligible for funding. This strengthens the industry’s confidence in the regulatory framework. The changes now adopted are a step in the right direction—but they are not yet a breakthrough. To fully exploit the potential of CHP, the next federal government must quickly take further action. This includes a long-term strategic development of the CHP Act and targeted support for the use of new gases, such as hydrogen, in CHP plants. We also call for clear regulatory conditions for investments in innovative and flexible CHP technologies, as well as greater consideration of CHP in future market designs to support renewable energies.

Germany needs CHP technology to combine energy security, economic efficiency, and climate protection. In the upcoming legislative period, it will be crucial to set the right course to secure this future technology in the long term."

About DIE GAS- UND WASSERSTOFFWIRTSCHAFT

As the voice of the gas and hydrogen industry, the association DIE GAS- UND WASSERSTOFFWIRTSCHAFT e.V. pools the interests of its members and is committed to utilising the potential of hydrogen and its derivatives as well as biogas and natural gas, including the associated infrastructure. The industry association also provides information on the opportunities offered by gaseous energy sources and their infrastructure in a climate-neutral and resilient energy system and drives the industry's transition to new gases. It is supported by leading companies in the energy industry and covers the entire value chain from production, transport and distribution to trading, sales and applications. Other industry associations and industrial companies support DIE GAS- UND WASSERSTOFFWIRTSCHAFT e.V. as partners.

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