The Future of the Czech Gas Industry

Abstract

In the Czech Republic, the gas industry is a key sector for ensuring the successful growth of industrial production and the growth of the standard of living. However, the set of Green Deal agreements recently adopted by the European Union envisages the gradual reduction of natural gas consumption and its replacement by ecologically produced (green) hydrogen. However, the production of green hydrogen in the Czech Republic is not yet industrially established, and its realisation will require considerable financial sums as investments in the relevant infrastructure. This will be reflected in a significant increase in the price of gas containing the prescribed proportion of green hydrogen. The planned addition of a certain proportion of hydrogen to natural gas will bring a number of complications to the gas industry. Production of a sufficient amount of green hydrogen, which should be added to natural gas, is not ensured in the Czech Republic or in the EU and will require considerable investment in the production infrastructure, which will in the final phase be transferred for the most part to the end consumer of the mixed gas. Total gas consumption will increase by 13%, as hydrogen has three times lower calorific value compared to methane, which is the majority component of natural gas. The reduction in greenhouse gas emissions will therefore be minimal or, taking into account the carbon footprint of the additional equipment needed for hydrogen production, even negative.