RIZM hosts industry event

Energy prices and competitiveness: the core problem

The glass, chemical and steel industries all stressed that enormous energy costs are putting their production sites at risk. Christiane Nelles (glass industry) emphasized that full electrification is not possible for the sector, as some processes inevitably rely on flame combustion. A competitive supply of climate-neutral hydrogen is therefore decisive. Ferdinand Rammrath (Covestro) argued similarly, also describing a secure and predictable energy supply as essential for the chemical industry. He also pointed to the intense competition with China, where production costs are significantly lower due to lower energy prices.

Olaf Hähnel (Swiss Steel Group) also drew attention to the paradoxical situation that, despite more energy-efficient production methods in electric arc furnaces, the high grid fees for energy-intensive processes cause additional costs. This burden is all the more severe because his company already uses a lower-emission technology, yet still comes under economic pressure due to current market conditions.

While all panelists agreed on the need for stable and competitive energy costs, views differed on the appropriate solutions. Max Dieringer (FlexPower) argued from the perspective of an electricity trader that direct state price regulation is not effective in the long term. Instead, it is necessary to set incentives to make grid use more flexible, in order to enable load shifting into cheaper periods. Julia Metz (Agora Industry) pointed out that short-term price reductions are not enough. Rather, a fundamental reform of the funding structures is needed to enable long-term investments in climate-friendly technologies. Julian Fieres (ZF) demands the same – the competitiveness of German industry cannot be secured through short-term subsidies alone; long-term investments in innovations such as hydrogen technologies and batteries are decisive. A purely short-term market intervention without strategic capital flows into sustainable technologies would merely mask existing problems instead of solving them structurally.

Overall, the discussion made clear that for the energy-intensive industry it is not just about short-term cost relief, but about a sustainable strategy that ensures both planning security and technological flexibility.

Technological transformation as the key

The discussion did not only highlight problems, but also possible solutions. Julia Metz of Agora Industry called for a long-term strategy for climate-neutral investments. Planning security is the decisive factor for companies to deploy new technologies. In addition, the funding of decarbonization measures must be oriented toward the reality of industrial processes.

Another central topic was technology openness. While in Germany some approaches, such as Carbon Capture and Storage (CCS), were viewed skeptically for a long time, internationally they are already being used successfully. Ferdinand Rammrath argued in favor of not ruling out such options from the outset, but instead dealing openly with new approaches. Olaf Hähnel also advocated a more pragmatic approach to energy sources. Instead of using LNG imports as a stopgap, Germany must increasingly rely on its own resources and an accelerated infrastructure expansion.

Necessary reforms and concrete measures

To keep industry in Germany competitive, several reforms were discussed:

• More flexible grid fees, to better balance load peaks and relieve energy-intensive companies.
• Technology openness, to give companies more room for innovative solutions.
• Planning security, in particular through a reliable long-term financing strategy.
• International competitiveness, by eliminating tax and regulatory disadvantages compared to other markets.
• A pragmatic approach to hydrogen technologies, to enable faster scaling.
• Faster grid expansion, to ensure a stable and affordable energy supply in the long term.

Outlook and conclusion

A look into the future revealed differing assessments. While some panelists were optimistic that Germany could manage the transition, others expressed clear doubts. Ferdinand Rammrath warned that, without short-term relief, many industrial operations could disappear in the coming years.

Julia Metz emphasized the importance of international developments. While Germany struggles for its market position, other countries are investing massively in climate-neutral industries. Without a clear strategy, Germany risks falling behind technologically and economically.

The discussion made one thing unmistakably clear: industry can and wants to contribute to the energy transition. But without the right political framework and more decisive action, Germany risks losing its connection to international markets. Now is the moment to set the course – not only for the energy supply, but for the future of the entire industry.