Oil & Gas

Authorities in Germany have decided to close a hydrogen refueling station after a fire broke out following an explosion. The lack of a disclosed date for resumption of operations has sparked widespread controversy, especially given the plant's status as one of the most modern clean fuel facilities in the country. The German government had provided financial support to the plant, highlighting the nation's efforts to transition away from Russian gas towards clean energy sources.

At present, details surrounding the explosion at the hydrogen refueling station in Geretsried, Bavaria remain limited. It is unclear whether technical issues were to blame or the extent of the damage caused by the ensuing fire. Local fire brigades managed to control the blaze using water, but the full impact of the incident has not been officially disclosed. The station, which had opened to the public only a week earlier, was intended to supply clean fuel at a dedicated freight site operated by the Augsburg City Transport Authority.

Germany had high hopes for this hydrogen station in achieving its clean energy targets. The Berlin government supported the project with about two million euros (approximately 2.136 million US dollars), aiming to build an integrated hydrogen pipeline network costing 20 billion euros (21.36 billion US dollars). The recent incident, however, puts the future of the project in jeopardy. Despite recent European support of about three billion euros (3.2 billion US dollars), the project’s completion phase has been extended until 2037, with plans to distribute costs to consumers through bills until 2055.

This explosion comes at a critical time for Germany’s energy strategy. Earlier in May 2024, Berlin halted plans to convert offshore wind energy into green hydrogen, questioning the feasibility of hydrogen-produced electricity. Meanwhile, Germany announced plans to expand over 20 natural gas-fired power plants, designed to be hydrogen-compatible in the future. Amid these developments, the head of the International Energy Agency, Fatih Birol, suggested Germany’s optimism about green hydrogen might be unrealistic due to rising costs. Despite setbacks, Germany previously marked progress by commissioning its first green hydrogen fuel station for heavy vehicles in May 2023.