Uniper market consultation shows high demand for hydrogen storage capacity from 2029

May 8, 2024

Uniper Energy Storage announces results of two-month market consultation
Very good und useful data, thanks to high-quality feedback
Growing demand for hydrogen storage capacities in the coming years

A large selection of players from the energy sector took part in the market consultation initiated by Uniper Energy Storage from the beginning of February to the end of March. In addition to energy suppliers, this involved power plant operators, hydrogen producers and consumers as well as traders. The high level of participation underlines the great importance of the topic.

The evaluation of the market consultation shows a strong overall interest in hydrogen storage in North West Germany even in the first phase of the hydrogen ramp-up from 2029 and beyond. The results also reflect analyses by other studies. A recent study by the association Gas Infrastructure Europe shows that in order to achieve the REPowerEU targets, hydrogen storage capacity of around 45 TWh will be required in Europe by 2030 and around 300 TWh by 2050. This opens up an enormous gap to the planned projects of 9 TWh by 2030 and 21.5 TWh by 2050.

“In the future, we want to play an even greater role in accelerating the energy transition in Europe while ensuring security of supply. The results of our market consultation are very encouraging and confirm that the demand for hydrogen storage capacity will increase significantly in the coming years. We are ready to provide the market with hydrogen storage capacity of up to 600 GWh by the end of 2030. However, in order to develop this business at the pace demanded, a stable regulatory and supporting framework is required with some urgency. The principles of Contracts for Difference should be applied to achieve the targets in a cost-efficient and effective way, balancing the risks of developers and society.

Doug Waters, Managing Director Uniper Energy Storage„

Another result of the market survey is the high flexibility requirement for the products to be provided. Compared to the existing natural gas market, a significantly higher demand for injection and withdrawal rates is expected. Large-volume hydrogen storage facilities with a high flexibility capacity, such as cavern storage facilities in particular, are therefore the initial focus of planning.

The aim of the market consultation was to be able to better forecast the demand for hydrogen storage capacities in Germany. The results will serve Uniper Energy Storage as a further basis for the concrete expansion planning of hydrogen storage sites and for the demand-oriented providing of hydrogen storage products in the future.