Transformation
We are actively shaping the transformation of the energy industry.
'Green gases' roadmap
Beyond the VNG 2030+ strategy, we are continuing to follow our roadmap for engagement in the field of renewable and decarbonized gases. Through concrete projects and research priorities, it paves the way for the further development of our business areas as part of the energy transition. In the long term, renewable gases can help future-proof existing applications that currently rely on natural gas. This particularly includes hydrogen and biomethane, which are seeing growing demand, especially in emissions-intensive industries and heavy-duty transportation.
These so-called “green gases” can not only contribute to security of supply but also offer significant potential for reducing greenhouse gas emissions in specific application areas. While the majority of final energy consumption is still based on fossil fuels, green gases currently account for less than one percent of total gas consumption. This ratio must be reversed over the coming years and decades in order to achieve Germany’s and Europe’s long-term climate protection targets.
Hydrogen
Hydrogen has strong potential to become a key technology in the energy market over the long term. There are various processes that can be used to produce hydrogen. Depending on the type of generation and production-related CO2-emissions, a distinction is made between green, blue, turquoise and grey hydrogen. Currently, the most cost-effective hydrogen production process is natural gas steam methane reforming (SMR), as the production of green hydrogen from renewable energies via water electrolysis is associated with very high costs.
The hydrogen colour spectrum
Green H2
Hydrogen that is produced through electrolysis using electricity from renewable energy sources. Alternatively, green hydrogen can also be produced from renewable biogas or biomethane, for example through steam reforming.
Blue H2
Hydrogen produced from natural gas by steam reforming. The resulting CO2 is stored in suitable geological structures by means of carbon capture and storage (CCS).
Turquoise H2
Hydrogen obtained by splitting methane (pyrolysis). During production, instead of CO2, the end product is solid carbon, which can be stored and used in various industries.
Grey H2
Hydrogen obtained from fossil energy sources, the production of which produces CO2-emissions. One common process is steam reforming from natural gas.
Biomethane
Produced from organic residues and renewable feedstocks, biogas is already a key component of a reliable and low-carbon energy supply. Upgrading biogas to biomethane (also known as renewable natural gas) enables its injection into the existing natural gas grid, thereby helping to replace fossil natural gas. Thanks to its refinement to natural gas quality, biomethane can be used as an alternative to fossil fuels in passenger and heavy-duty transport, power and heat generation, as well as in industrial and commercial applications.
Biogas plays an important role in a decarbonized energy world. Together with BALANCE Erneuerbare Energien GmbH, a subsidiary of VNG AG and the infrastructure investor CVC DIF, and bmp greengas GmbH, a wholly-owned subsidiary of VNG Handel & Vertrieb, we are actively driving the development of our business centered on this domestic energy source and thus accelerating our transition to renewable gases.
BALANCE Erneuerbare Energien
With more than 40 biogas plants, BALANCE Erneuerbare Energien GmbH is one of Germany’s leading biogas plant operators. Using renewable feedstocks and residual materials, BALANCE generates secure and flexibly controllable energy as well as innovative products throughout the entire biogas value chain.
bmp greengas GmbH
bmp greengas is one of Europe’s leading biomethane traders and an expert in renewable gases. Since 2007, bmp greengas has been supporting companies in transitioning to an energy supply based on biomethane, green hydrogen, bio-SNG, and bio-LNG sourced from European production.
Our role in the transformation of the energy system
We want to actively shape the transformation of the energy system and to support you as a strategic partner in implementing your transformation initiatives. On the path toward a decarbonized energy economy, it is essential for us as an organization to both advance our established gas-related business activities and drive the transition toward new business areas. The implementation of our decarbonization strategy brings with it a wide range of new projects, topics, and challenges. It requires cross-functional thinking and proactive action in order to achieve our shared goals. This approach lays the foundation for our future growth and for the achievement of long-term energy and climate objectives.
Energy park Bad Lauchstädt
The regulatory sandbox for the energy transition - intelligent generation of green hydrogen from wind power
Carbon management for industrial transformation
In addition to our activities and projects related to the ramp-up of renewable and decarbonized gases, we at VNG Handel & Vertrieb GmbH aim to actively support the transition to a low-carbon future through innovative approaches to carbon management.
Carbon management encompasses all technologies and approaches for reducing and safely handling carbon dioxide (CO₂). In the long term, it can help lower industrial CO₂ emissions and contribute to closing carbon cycles.
Funding and Regulation
At the European level, the transformation of the energy system is being actively promoted in order to achieve the European goal of climate neutrality by 2050. Instruments such as the Carbon Contracts for Difference (CCfD) and the Carbon Border Adjustment Mechanism (CBAM) play a major role in the funding and regulatory landscape. But what exactly is behind it?
Carbon Contracts for Difference
Carbon Contracts for Difference are climate protection agreements between the Federal Ministry for Economic Affairs and Climate Protection (BMWK) and companies in emission-intensive sectors that are intended to make low-greenhouse-gas production processes marketable. How do the CCfD work in practice?
Carbon Border Adjustment Mechanism
The Carbon Border Adjustment Mechanism was introduced on October 1, 2023 in accordance with Regulation 2023/956 of the EU. As a part of the EU’s “Fit for 55” package, it aims to address the risk of greenhouse gas emissions leakage and thus contribute to the implementation of the Green Deal.
H2Global Foundation
As a founding member and member of the board of trustees, we support the non-profit and cross-sector H2Global Foundation and in doing so advance the promotion of hydrogen as a building block of the future energy system. The Foundation contributes to the achievement of the targets adopted in the National Hydrogen Strategy (NWS) in relation to the production and importation of green hydrogen. Through the efficient promotion of hydrogen production and international energy partnerships, a market ramp-up is to be achieved in the near future and thus the importation of green hydrogen to Germany is to be accelerated.
Konstantin von Oldenburg
Managing Director VNG Handel & Vertrieb GmbH
What's behind the foundation?
The H2Global Expert Commission works to ensure that a local hydrogen industry develops in partner countries at the same time as the hydrogen export industry is established, as a pillar of the local energy transition. The market-oriented promotional programme was initially designed by the Gesellschaft für internationale Zusammenarbeit (GIZ) and is now being further developed under the project sponsorship of the German Hydrogen and Fuel Cell Association (DWV) within the framework of an expert commission.
The H2Global Expert Commission is made up of representatives from German industry, the financial sector, associations and public institutions who jointly pursue the goal of shaping the H2Global concept until it is ready for implementation. The development, especially in the fields of organisational structure, processes, services, countries, products and funding, takes place in close coordination with GIZ and the BMWi along with industry.
Questions and Answers on the transformation of the energy system
VNG Handel & Vertrieb is shaping the development of energy supply with market expertise and a strong sense of responsibility toward customers and partners.
Green gases such as hydrogen and biomethane play an important role in the further development of the energy system. They enable companies to gradually replace fossil fuels and reduce CO₂ emissions while also contributing to security of supply. Particularly in energy-intensive sectors such as manufacturing and steel production, as well as in heavy-duty transport, they offer a high-performance alternative to conventional energy sources.
VNG Handel & Vertrieb supports companies as a strategic partner in the further development of their energy supply systems and the implementation of tailored transformation pathways. To this end, VNG Handel & Vertrieb offers a comprehensive portfolio of solutions centered on renewable and decarbonized gases such as hydrogen and biomethane, develops projects and innovative energy concepts worldwide, and assists companies in implementing initiatives, for example in the field of carbon management.
Talk to us!
Do you have any questions about the projects of VNG Handel & Vertrieb? We look forward to hearing from you!
Broschure
Our brochure provides an overview of our key activities relating to renewable and decarbonized gases.
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Corporate sustainability
Find out more about corporate responsibility and sustainability at VNG Handel & Vertrieb.