Habeck: Electricity prices for industry must fall further

During a visit to the Ardagh Glas glassworks in Obernkirchen in Lower Saxony, Federal Economics Minister Robert Habeck (Greens) made it clear that electricity prices had fallen significantly following sharp price increases after the start of the Russian war of aggression against Ukraine. "But we have to keep going down."

This can be achieved through the expansion of renewable energies, which lowers the price of electricity, and a "market design" that enables energy-intensive companies to purchase this electricity at a low price. However, there is a need for action regarding the exemption from grid fees - customers pay these for the electricity grids. The exemption is being phased out as an industrial policy support measure. The EU Commission will probably no longer approve it. The German government is working on other options.

Supply agreement for green hydrogen

Germany has also concluded a supply agreement for green hydrogen. More than 250,000 tons of "green" ammonia are to be imported in the coming years to produce more climate-friendly hydrogen. A corresponding agreement for the years 2027 to 2033 has been concluded with the company Fertiglobe from the United Arab Emirates, according to the Federal Ministry of Economics. According to the agreement, Fertiglobe will produce ammonia in Egypt using wind and solar energy, which will then be converted into green hydrogen in Germany - "green" because it is produced using renewable energies. The price for this is said to be just under 4.50 euros per kilo.

The agreement is the result of an initial tender as part of the H2Global funding program, which aims to create a functioning international market for green hydrogen. To this end, green hydrogen products are purchased on the global market and sold to the highest bidder in Germany or the EU. Possible losses on resale are offset by state subsidies. A price of 4.40 euros per kilo is currently considered competitive.

The supply contract that has now been agreed is an important step for the transformation of Germany as an industrial location, said Habeck. "The availability of affordable green energy - now also in the form of hydrogen - will continue to be an important location factor for industry in the future."