Gas Meets Half German Industry's Power Demand

Natural gas is becoming more important in German industry, especially for power generation, gas lobby group Zukunft Erdgas said October 21. Citing figures from the federal statistical office, ZE said gas "now accounts for 50% of the electricity generated by industry."

It generated 53.4 TWh of electricity in 2019 of which gas accounted for to 26.7 TWh, up 42% in a decade, and eroding coal and lignite. ZE said that gas "is a fundamental pillar of German industry. This makes it all the more important to have enough competition and import opportunities for natural gas to support the economy." 

Industry needs natural gas as feedstock for hydrogen, hydrocyanic acid or ammonia production, as well as fuel to generate heat and electricity. ZE said that in "the current pandemic in particular, natural gas is proving its resilience and stability. These properties are particularly important for industry, which is closely related to the energy source. Especially in the current difficult economic times, the demand for natural gas should be sufficiently covered and import structures made accessible so that the natural gas price remains competitive."

The share of electricity from hard coal and lignite has fallen from 22.6% to 11.6% over the past ten years. "Compared to lignite, generating electricity with natural gas reduces CO₂ emissions by up to 70%, which is an important contribution to climate protection," ZE said.

Large amounts of CO₂-neutral hydrogen can also be produced with natural gas, which in turn can be used as raw material and fuel. “With the all-rounder hydrogen, the emission-intensive industry is offered real prospects for decarbonisation. With the increasing use of natural gas, industry is already on the right path," ZE said.