German Utility LEAG Indefinitely Postpones 110MW Green Hydrogen Project
- LEAG, Germany’s second-largest electricity supplier, has indefinitely postponed its 110MW green hydrogen project, H2UB Boxberg, due to political and economic conditions. Announced in April 2024, the project was to be located at the site of disused coal-fired power plant units in eastern Germany. The postponement follows regulatory delays, including the indefinite delay of the federal Power Plant Safety Act by the previous coalition government, and economic challenges like high energy costs. LEAG is shifting focus to other technologies for electricity generation, storage, and flexibility.
- This setback reflects broader challenges in Germany’s green hydrogen sector, especially given recent decisions like ArcelorMittal dropping carbon-neutral steel plant conversions. It contrasts with Europe’s overall push, such as Spain’s subsidies, and may impact the region’s hydrogen strategy.
- Key Takeaway: The postponement highlights the challenges of regulatory and economic conditions in scaling green hydrogen projects, even in advanced economies like Germany.
- Sources: Reuters, Hydrogen Insight.