Germany to Spend $21 Billion on Hydrogen Network

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Written by Martin Lynch, European News Editor for Industrial Info (Galway, Ireland)--Germany's gas transmission system operators (TSOs) have submitted their plan for a hydrogen core network (HCN) that will span the country and cost 19.7 billion euro ($21.4 billion) to realize.

The plan was submitted to the country's Federal Network Agency (BNetzA) by the Association of Gas Transmission System Operators (FNB Gas). Spanning 9,666 kilometers (km), the core network marks the beginning of a Germany-wide hydrogen infrastructure that will accelerate the ramp-up for hydrogen production by 2032. FNB Gas members currently operate a 40,000-km long-distance transmission network for transregional and cross-border gas transport. The transmission grid forms the backbone of the German gas transport system and enables connections to connected transport networks, large industrial customers, gas power plants and underground storage facilities.

The proposed hydrogen core network will consist mainly of converted natural gas pipelines (roughly 60%), new hydrogen pipelines and compressor stations. The first major pipeline is expected to be operational from 2025, while the completion of the entire HCN is expected in 2032. The project has the support of the government and the submitted plan outlines just how and where the network will be rolled out and how the TSOs will pay for it.

"The core network solves the chicken-and-egg problem by initially developing the infrastructure on the basis of a scenario developed jointly with politicians," explained Barbara Fischer, FNB Gas Managing Director. "It lays the foundation for the ramp-up of the hydrogen economy. The core network is the starting point for the development of a Germany-wide transport infrastructure. The next step is to further develop the infrastructure in order to bring hydrogen to the area. The TNB and future hydrogen transport network operators are already working on this in close coordination with the distribution network operators as part of the integrated network development planning for gas and hydrogen."

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.

Klaus Müller, president of the German Federal Network Agency (BNetzA), confirmed it was now examining the plan to ensure that it "is in compliance with legal requirements. For example, hydrogen producers, storage facilities and large consumers must be interconnected, and there must be access points to the European hydrogen network."

In June, the European Commission (EC) approved a 3 billion-euro (US$3.25 billion) German government scheme to support the construction of the HCN, which will also form a key part of the European hydrogen backbone connecting several member states. The government will offer support in the form of a guarantee that will let TSOs "obtain more favorable loans to cover initial losses in the ramp-up phase of the HCN," according to the EC. "A core network of pipelines to transport hydrogen is crucial to trigger investments in hydrogen production and consumption, and can help accelerate the green transition," said Margrethe Vestager, executive vice president in charge of competition policy at the EC. "The German scheme approved today will significantly contribute to the development of a European hydrogen market while minimizing any potential distortions to competition."

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).