HH2E and Leag, a German energy company and a brown coal miner and power generator respectively, announced plans to collaborate on green hydrogen plants in Saxony, Saxony-Anhalt, and Brandenburg. The goal is to create a value chain for producing, transporting, and commercializing green hydrogen derived from renewable energy sources.
Leag, based in Lusatia and owned by Czech investor EPH and private equity group PPF Investments, aims to bring 7 GW of wind and solar power plants online by 2030. Meanwhile, HH2E plans to install 4 GW of electrolysis capacity to produce hydrogen using renewable energy.
Germany is working towards making emissions-free hydrogen a major part of its energy sector by 2030. However, the recent disruption of gas supplies due to the invasion of Ukraine has forced the country to temporarily rely on polluting energy sources.
Green hydrogen releases energy without producing carbon dioxide, making it a clean source of energy. However, there are concerns that the new industry may prolong the life of fossil fuel incumbents instead of promoting new players, and that the cost of new infrastructure may not be competitive or that enough renewable energy will be available.