Power-to-Gas and hydrogen

Your expert for questions

Michael H. Küper
Head of Energy Law for Industry at PwC Germany
Tel: +49 211 981-5396

How to take advantage of these important new technologies

Innovative approaches to generating and storing energy like fuel cells, Power-to-Gas and electrolysis will be key factors in making the energy transformation in Germany a success. The proportion of electricity from renewable energy has been increasing for many years. However, storage solutions must play an increased role in order to ensure the supply of energy in Germany for the future. The use of hydrogen and natural gas will be particularly important. Synthetic natural gas will be generated by Power-to-Gas technology, and then fed into the existing natural gas network.

"Storage solutions like Power-to-Gas play an important role in protecting the environment, increasing sustainability and supporting a successful energy transformation. Companies that focus on these future-facing technologies must clarify several questions about economic viability and regulations in advance."

Michael H. Küper, Head of Energy Law for Industry at PwC Germany

Regulatory requirements for the use of Power-to-Gas technology

With the help of technologies related to the use of hydrogen, it will be possible to drive progress toward climate-friendly solutions for areas including mobility, industry, heating and energy supply. Companies must consider various legal and regulatory requirements for operating electrolyzers and Power-to-Gas facilities, as well as for transporting (pipeline-bound) hydrogen and using it in its various forms. These new technologies create a foundation for sustainable development – but they also involve uncertainties that have relevant implications for each respective business case.

While many projects in this field offer clear sustainability benefits, they can only be considered economically viable once the relevant taxes, duties and tariffs related to energy consumption for producing hydrogen have been taken into account. Companies must also clarify questions related to regulations covering transport capacities for hydrogen before they can decide whether or not to move ahead with a project of this kind.

Your situation

A legally secure and cost-optimized approach to Power-to-Gas

Before implementing projects related to hydrogen or Power-to-Gas, companies must clarify several questions, including:

  • Which burdens related to the cost of electricity (e.g. tax, duties or tariffs) should be taken into consideration when it comes to using Power-to-Gas technology?
  • What possibilities are available to compensate for these burdens?
  • How can Power-to-Gas technology be integrated into existing supply concepts?
  • What is the current legal framework for generating and transporting hydrogen? And what changes are expected?
  • Are funding opportunities available for projects that involve using hydrogen?

Our services

The legal experts at PwC support you in finding answers to these questions and many more by providing services including:

  • Consultancy about claiming privileges related to electricity costs that are connected to generating power from hydrogen (e.g. based on the specific compensation scheme in line with the German Renewable Energy Sources Act).
  • Developing concepts for transporting (pipeline-bound) hydrogen.
  • Integrating hydrogen into self-supply concepts.
  • Consultation about funding measures, the development of the hydrogen market, and regulatory challenges.

Our promise

You can count on us

We support you in understanding the economic and legal implications of future-facing, sustainable energy concepts – and making the most of these opportunities for your company. Our interdisciplinary team includes lawyers, economists and engineers.

Contact us

Michael Küper

Michael Küper

Partner, Lawyer, PwC Germany

Tel: +49 211 981-5396

Matthias Stephan

Matthias Stephan

Manager, Lawyer, PwC Germany

Tel: +49 211 981-1509

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