Germany's reputation for high-tech products and engineering know-how is known the world over. The country, nestled in the heart of Western Europe, is now using its innovative culture to push forward energy storage, technology that has a multitude of benefits for both the public and private sector. CHEManager Europe asked Germany Trade & Invest's Chief Executive Dr. Jürgen Friedrich about the strides his country has made when it comes to energy.

CHEManager Europe: What are the most significant developments in the field of energy storage in Germany to date?

J. Friedrich: Due to the increasing share of renewable energies from wind and photovoltaic systems in Germany's energy mix, we are currently the country with the greatest requirement for new and innovative storage capacity in Europe. Of the various technologies available and in development, one of the promising paths is to utilize hydrogen. Germany is currently leading Europe in research and development in fuel cells and hydrogen technology. Within the EU, Germany has the largest research program in place - the National Innovation Program Hydrogen and Fuel Cell Technologies, or NIP. The initial implementation of this technology is already taking place in demonstration projects driven by national and regional initiatives. These projects will help to further develop the technology and to reach a critical mass for local production.

Has the industry shown interest in these efforts?

J. Friedrich: Multinational energy companies are already involved in these developments, which accelerates the entire process. As early as 2008, the French petroleum company Total entered a partnership with Enertrag within the framework of the Clean Energy Partnership to construct the world's first hydrogen refueling station stemming from renewable energy sources. It is an exciting time for this field.

What advantages does Germany offer in the field of storage technologies?

J. Friedrich: Without energy storage technologies, the integration of renewable energies in the energy mix would not be possible to the degree already legally mandated by the federal government. Today Germany has the largest share of fluctuating renewable energies in Europe. Forecasts predict that this will continue to be the case in the future. Due to its geographic conditions, Germany is limited in its reliance on conventional technologies like pumped-storage hydroelectricity. In the future, innovative technologies like smart grids and storage technologies will be increasingly necessary. Paramount to the achievement of these goals are the innovative, export-driven companies in the renewable energies industry.

What kind of smart grid concepts are currently being developed in Germany?

J. Friedrich: The development of smart grids has created a need for multidisciplinary research and development efforts and coordinated projects. In Germany, six model regions have been selected as part of a renewable energy technology competition. Each of these regions is applying an integrated approach that spans the value chain and covers all energy-relevant economic activities. These range from the approach to commercialization all the way down to core technical research and development. These six regions have access to €140 million from the federal and regional governments for the period 2008-2012. The six winning regions are called eTelligence, E-DeMa, MeRegio, Modellstadt Mannheim, RegModHarz, and Smart Watts. The projects focus on areas ranging from developing and demonstrating decentralized energy systems to utilizing IT to intelligently manage energy and lower carbon dioxide emissions.

What is the current level of renewable energy in the electricity mix in Germany?

J. Friedrich: Renewable energy currently makes up over 16% of the total electricity mix in Germany. The German government's new energy concept foresees the share of total electricity consumption from renewable energies to increase to at least 35% by 2020 and 50% by 2030. Currently, Germany is the world's leading producer of photovoltaic electricity with approximately 9.8 GWp of installed capacity through 2009 as well as the European leader in wind energy generation with approximately 25 GWp installed last year.

What opportunities are there for companies in Germany in the energy storage industry, especially foreign companies?

J. Friedrich: Considering the rapid development of renewable energies, the energy industry in Germany is expected to see massive investments in energy storage. According to the German Energy Agency DENA, several billion euros are expected to be invested in this area by 2020. Foreign investors spanning the value chain are welcome to participate in R&D programs together with international and national partners. Component and system manufacturers, power plant technology providers, players from the IT industry as well as the conventional and renewable energies industries and utilities are all actively cooperating. This allows international companies to actively take part in innovation and gain important first-mover expertise.

What are the current challenges in the field of energy storage technologies?

J. Friedrich: It is clear that there is not one single storage technology that meets all requirements, such as storage time, capacity, availability, and cost. These factors depend in part on the geographic location and the legal framework, among others. For this reason it is pertinent to develop a broad portfolio of technologies. If you consider, for example, solar energy versus wind energy, you can clearly see the various requirements. The sun's cycle is consistent, whereas wind doesn't follow a pattern. Solar and wind energy have different input voltage levels ranging from low to high voltage. In the offshore wind industry, hundreds of megawatts of electricity can be generated quickly, but there are a large number of seasonal and other unpredictable fluctuations, less cycles, and the necessity to handle high voltage input. This means that a mix of technologies - including batteries, hydrogen, smart grids, and other forms of intelligent management - is necessary to cover all necessary requirements.
The most important technical challenges that are currently being researched in Germany and worldwide cover a broad spectrum. Scientists are working diligently on improvements in battery technology, for example. The development of materials, battery management electronics, network integration, and a number of other topics are currently in focus. Challenges are posed by the availability of storage, investment and maintenance costs, compatibility with the environment - which we can see with Cadmium - resource scarcity, such as Lithium, and recycling.

What characterizes Germany in terms of hydrogen production and storage?

J. Friedrich: Germany has already developed a great deal of technical expertise in hydrogen. In electrolyser technology, ELT is a technology leader. Linde, WEH or Dynetek are advancing tank and other storage and filling methods. Germany's storage capacity is very high due to the presence of salt caverns, especially near the current and future offshore wind parks in the northern regions of the country. KBB is making great strides in underground storage technologies in this region.
For both mobile and stationary applications, Germany has the necessary R&D infrastructure that is highly specialized in this field. As the smallest molecule in the universe, hydrogen necessitates innovative materials - such as metal hydride and nanotubes - as well as chemical processes - namely hydrogen storage in the form of tetrahydrofuran, to handle the temperature and pressure load and to reduce the loss of materials or energy.