Germany Approves National Hydrogen Network

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Written by Martin Lynch, European News Editor for Industrial Info (Galway, Ireland)--The green light for Europe's largest planned hydrogen network, which will span just over 9,000 kilometers (km), has been granted by Germany's Federal Network Agency (BNetzA).

The hydrogen core network (HCN) was proposed by Germany's gas transmission system operators (TSOs) this summer and will cost 19.7 billion euro (US$20.5 billion) to build. It will be rolled out in stages between 2025 and 2032 in preparation for the country's large-scale increase in hydrogen production. By 2032, the network's feed-in capacity will be 101 gigawatts (GW) and the feed-out capacity 87 GW. The HCN will also form a key part of the European hydrogen backbone connecting several European Union (EU) Member States. In June, the European Commission (EC) approved a 3 billion-euro (US$3.25 billion) financial aid package by the German government to support its construction. The proposed hydrogen core network will consist mainly of converted natural gas pipelines (roughly 60%), new hydrogen pipelines and compressor stations. Germany's TSOs operate a 40,000-km long-distance transmission network for transregional and cross-border gas transport.

"The hydrogen core network sends a decisive signal for the future viability of Germany as a business location," said Federal Minister for Economic Affairs and Climate Protection, Robert Habeck. "It is a basic prerequisite for the successful ramp-up of hydrogen and thus for the decarbonization and competitiveness of industry in Germany. With the approved core network, we are creating planning security for everyone involved - from hydrogen producers at home and abroad to the operators of power plants and storage facilities and future industrial users. With the approval, the plans can now quickly become reality. The first hydrogen pipelines of the core network will go into operation as early as next year, and will then be built up gradually until the target year of 2032."

"The approval for the hydrogen core network gives the network operators the go-ahead to gradually set up and operate the infrastructure for hydrogen," added Klaus Müller, president of the Federal Network Agency. Industrial Info is currently tracking more than 100 German hydrogen pipeline projects worth almost US$3.5 billion in investment. Subscribers to Industrial Info's Global Market Intelligence (GMI) Project Database can click here for the reports.

Thomas Gößmann, chairman of the Association of Gas Transmission System Operators (FNB Gas), commented: "With the hydrogen core network, we are laying the foundation for a new energy system. It offers a historic opportunity for Germany to position itself as a pioneer in the hydrogen economy. In doing so, we are making an advance contribution to transmission system operators and creating the basis for a climate-neutral industry and energy supply. The development of the H2 market is now a joint task: all players are required to actively drive forward the ramp-up. Especially in the current economic situation, this requires favorable framework conditions to trigger private investment along the entire H2 value chain."

The network plan was based on the detailed market surveys by the TSOs on the production of and demand for hydrogen as part of its 2020 and 2022 network development plans. As part of that, they identified pipelines that could be converted from natural gas to hydrogen as well as including the first hydrogen clusters in Germany.

Industrial Info Resources (IIR) is the leading provider of industrial market intelligence. Since 1983, IIR has provided comprehensive research, news and analysis on the industrial process, manufacturing and energy related industries. IIR's Global Market Intelligence (GMI) helps companies identify and pursue trends across multiple markets with access to real, qualified and validated plant and project opportunities. Across the world, IIR is tracking over 200,000 current and future projects worth $17.8 Trillion (USD).