Pragmatic renewables cooperation in times of political uncertainty From Hamburg to the world: Minnesota delegation visits Hamburg to learn about its energy transition

Hamburg and Minnesota have been regularly sharing information and experience of renewable energy topics for over ten years. A few days ago, a delegation made up of political, economic and scientific representatives from the northwestern US state travelled to Hamburg once again, as part of the Berlin Seminar on Energy Policy. At the invitation of the EEHH Cluster Agency, companies from Hamburg’s energy sector took part in a roundtable discussion. This event focussed on issues such as decentralised energy supply, public charging infrastructure and the heating transition.

The day began with Jan Rispens, EEHH Managing Director, giving an introduction to renewables development in North Germany and Hamburg. The subsequent discussion covered the regulation of individual renewables sectors, on/offshore wind energy and solar, among other things. By 2023, more than 4GW of onshore wind power had been installed in Minnesota, putting the state in seventh place in the US for wind expansion. With a joint share of over 50%, coal and nuclear power are currently still considered the principal energy sources. Almost 25% of electricity is generated by wind power.

Energy transition for the benefit of residents

Anna Leidreiter, Board Member of BürgerEnergie Nord eG (BEN), gave an introduction to the energy cooperative. BEN is a cooperative energy provider that produces, sells and supplies green electricity via PV systems on the roofs of apartment blocks, municipal buildings and business premises. BEN is one of over 900 energy cooperatives in Germany and every BEN member pays dues of at least EUR 250. This capital is used to invest in PV projects. BEN currently operates around 20 projects in North Germany to generate electricity for tenants, municipalities and businesses.

For the US visitors, the tenant electricity concept is a prime example of how residents can benefit from the energy transition: as the electricity is generated locally, a number of additional costs, fees and taxes that have to be paid to the energy supplier for private consumption as part of an electricity supply contract are no longer incurred. This makes this green electricity around 10% cheaper. If there is insufficient solar power, e.g. during the current winter months, the supply of climate-friendly green electricity from the public grid is guaranteed. The operation of other system technology such as e-mobility and electric heat pumps can be optimally integrated into the solar power energy supply.

Achieving climate neutrality through electromobility

For many years, Hamburg has been working to expand electromobility, which includes developing and providing a demand-based network of public charging facilities. Galya Vladova, Senior Project Manager E-Mobility at hySOLUTIONS GmbH, explained Hamburg’s e-mobility strategy and actions. hySOLUTIONS is a public-private company with shareholders from the transport and other sectors. It coordinates the use of electric motor and power supply systems in the Hamburg Metropolitan Region. As part of Hamburg’s climate protection legislation, the authors developed a roadmap for the ramp-up of e-mobility.

The current share of private electric cars registered in Hamburg is approx. 3.2%. The situation is similar in Minnesota. However, there is a much higher share in the company car category (22.4%). There are currently almost 3,000 public charging points in Hamburg, over half of which are owned by the city. In the next three years alone, 4,100 new charging points will be added to the existing network. The city is particularly focussing on private-public facilities such as filling stations and supermarkets, which have great potential for public charging. From 2028, operators with over 200 fuel stations must install at least one e-charging point. Around 50% of filling stations (approx. 90) in Hamburg already have charging points. The expansion of electromobility also faces challenges: inadequate network performance, high expansion costs and different requirements in individual districts.

In the large state of Minnesota, the average car covers almost 30,000 km per year. Battery range is therefore a crucial criterion for people there when deciding whether to buy an electric car or not. Large vehicles, in particular, e.g. pick-ups, are very popular with Americans. From summer 2025, manufacturers such as Ford will offer a model with an electric plug-in hybrid drive for the first time, although these will only cover up to 40 km on electric power alone. According to statistics from the US finance and technology firm Self the purchase and (annual) running costs (e.g. for charging, insurance and maintenance) of an electric car during the first six years in Minnesota are on average USD 3,000 more than those of a petrol or diesel model. The high investment and inadequate charging infrastructure (currently 800 stations throughout Minnesota) are the main reasons for sluggish demand on the e-mobility market.

Heating transition: the elephant in the room

Local government plays an important role in the development and provision of a comprehensive heating infrastructure. According to Hamburg’s heating plan legislation, it is already mandatory to produce a heating plan in the city. Hamburg Institut is helping the city and municipal energy firms to plan and implement the heating strategy. Paula Möhring, Senior Consultant, gave a comprehensive insight into this.

Fossil gas is currently the dominant source of heating energy in Hamburg (approx. 50%). District heating accounts for around a quarter of heat usage. Renewable technologies are therefore of minor importance. The phasing out of coal by 2030 requires the conversion of heat generation and distribution to a climate-neutral solution. This transformation will be implemented by means of two specific milestone projects.

Hafen power station is scheduled to become operational in late 2025. A gas and steam turbine (combined cycle power plant, CCPP) will be built at the Dradenau terminal in the Port of Hamburg. At the same time, various other heat sources will be integrated into the concept. These include the Rugenberger Damm energy-from-waste plant and the wastewater heat pump at the Dradenau sewage plant. A southern pipeline across the Elbe is being prepared to transport the heat and connect it to the existing district heating network. A special feature of Tiefstack power station is that it uses industrial waste heat. Various companies in the raw materials industry are based in the Port district, e.g. the copper manufacturer Aurubis. The intensive production processes generate waste heat that can be stored in thermal storage systems and fed into the district heating network. Tiefstack also uses river water from the Elbe as a climate-neutral heat source. In future, two large river water heat pumps with an output of 230 MW will be installed. A power-to-heat application is also part of the concept. Green electricity from the nearby onshore wind turbines is used to heat river water that is fed into the district heating network.

Luke Gaalswyk, President and CEO of Ever Green Energy/District Energy St. Paul, presented the progress made with heat planning in Minnesota. The strategic goal there is also to transform the heat supply from hot steam to hot water and to use large heat pumps. The Mississippi river runs through the state and provides the ideal conditions for climate-neutral heat generation. District Energy operates the largest hot water distribution system in North America and is a market leader in system integration with biomass combined heat and power (CHP), thermal storage and solar thermal technology. In Minnesota, it is responsible for heating and cooling using hot and cold water.

According to Lawrence Livermore National Laboratory, fossil gas is currently the primary energy carrier for suppling residential, commercial and industrial sectors in the US. Gaalswyk believes that the decarbonisation of the heating sector will determine whether climate targets can be achieved. In practice, however, it is the elephant in the room, as it is often addressed and treated as a much lower priority compared to renewables expansion.

The Minnesota delegation was extremely impressed and inspired by Hamburg’s experience. At the same time, the roundtable event with the US visitors gave the participating Hamburg stakeholders a unique opportunity to understand and discuss common interests and different approaches to dealing with climate change and the energy transition. We plan to continue our cooperation!