BAKU, Azerbaijan, June 6. The EU must provide investors with a clear regulatory framework on hydrogen and ammonia, Managing Director of VNG Handel & Vertrieb GmbH Konstantin von Oldenburg said, Trend reports.
He made the remark during today's panel discussion themed "Gas Dialogue: The Role of Gas Supply During the Energy Crisis" at the 29th Baku Energy Forum in Azerbaijan.
"When it comes to financing, I am not in favor of government
subsidies. In my opinion, it would be best if the European Union
refrained from making direct investments in infrastructure
construction. Instead, it would be beneficial for the EU to offer
investors a transparent regulatory framework. This is applicable to
both hydrogen and ammonia infrastructure.
A consistent regulatory framework enables investors to accurately
assess their potential returns. It would be beneficial for
politicians to establish incentives for such calculations. We
understand that the demand for gas will continue for at least
another two decades. A stable structure requires a minimum period
of 25 years," he emphasized.
Konstantin von Oldenburg also mentioned that investors need to be confident that the capital invested in transport infrastructure will pay off.
"In 25 years, it will be possible to count on a reasonable range of returns, which is especially important for the processing side. A regulatory framework and confidence in stability are what we need. We don't need money or subsidies, we need stability for clear future planning," he added.
The second day of the 29th Baku Energy Forum kicked off on June 6.
Today's panel discussions will cover topics such as "Gas Dialogue: The Role of Gas Supply During the Energy Crisis," "Exploration and Production Opportunities in the Caspian Region", "Oil Flows: Cross-Logistics and Infrastructure Development in Azerbaijan", "The Role of Human Capital in a Successful Energy Transition," and "Empowering and Accelerating the Green Transition: Strategies for COP29 and for the Green World".
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