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€18.9bn investment in 9000 km of infrastructure will include conversion of existing natural gas pipelines
Germany’s Federal Network Agency has approved a core hydrogen network spanning 9040 km.
About 60% of the pipelines will be converted from existing natural gas infrastructure, while the rest will be newly constructed.
By 2032, the network will have a feed-in capacity of 101GW and a feed-out capacity of 87GW, making it the largest hydrogen pipeline system in Europe.
The 15 transmission system operators (TSOs) responsible for building and operating the network will invest €18.9bn in the network, with the project set for completion in 2032.
Green hydrogen developer HH2E has welcomed the news, stating that most of its planned green hydrogen production sites, including Lubmin and others not yet announced, are strategically located with direct access or close proximity to the core network.
Federal Minister for Economic Affairs and Climate Protection Robert Habeck said: “The hydrogen core network sends a decisive signal for the future viability of Germany as a business location.
“Because it is a basic prerequisite for the successful hydrogen ramp-up and thus for the decarbonisation and competitiveness of industry in Germany.
“With the approved core network, we create planning security for all parties involved – from hydrogen producers at home and abroad to operators of power plants and storage systems and future industrial users.
“The planning phase of the core network was intensive. We have quickly created a legal framework that gives market players security while providing the flexibility to respond to changing market ramp-up conditions.”
The hydrogen core network will be built step by step with the first hydrogen conversion lines entering into operation in 2025.
The planning by the Federal Network Agency ensures that only natural gas pipelines are converted to hydrogen that are no longer needed for natural gas transport.
The management of the core network is to be built and operated by private sector and financed by the fees of the users.
However, since there will be relatively few customers at the beginning, the network charges are capped.
Amortisation ensures that the revenues of the first phase are offset by subsequent additional revenues.
With the exception of the Important Project of Common European Interest (IPCEI) leadership projects, which are supported by the federal government and the federal states, no federal funds are invested in the core network lines – but the financing concept contains a financial safeguard by the federal government against unforeseeable developments.
In 2026, the first integrated network development plan is to be approved by the Federal Network Agency. |
