BP, energy firm Uniper, German pipeline operator NWO, steelmaker Salzgitter and European transmission system operators Gasunie, Nowega and Thyssengas have signed a letter of intent to link up hydrogen infrastructure throughout northwest Germany. The consortium plans to form a 400km north–south corridor between Wilhelmshaven—where BP and Uniper are developing an ammonia import terminal and the latter is also planning a 1GW electrolyser—and Cologne, as well as a west–east corridor from Wilhelmshaven to Rhine-Ruhr and Lower Saxony.

Gasunie and Thyssengas announced plans for the north–south corridor in February, aiming to both repurpose existing networks and build new pipelines. Gasunie and Nowega will be responsible for developing the west–east corridor, with a focus on supplying offtake from Salzgitter.

400km – Length of planned north–south corridor

Consultancy PWC’s Strategy& business unit highlighted in a recent report seven regional clusters of potential hydrogen offtakers in Germany, with Rhine-Ruhr noted as having the highest demand. However, while planned pipeline networks will be able to supply six of these regions by 2030, Germany’s southernmost industrial hub—dubbed the ‘Freiburg-Munich Axis’ by Strategy&—will not be connected to this grid.

Six industries—chemicals, metals, electronics, refining, ceramics and glass—will account for 80pc of German hydrogen demand by 2030, equivalent to 22TWH, according to Strategy&. However, it forecasts limited demand from the cement, paper, food and machinery sectors, while use in heating is unlikely due to new buildings opting for heat pumps to decarbonise.

Strategy& is relatively bullish on Germany’s prospects for developing sufficient domestic capacity to supply the targeted half of its demand. It calculates 5GW of electrolyser capacity is already being planned, under construction or in operation across 120 projects, and estimates 30GW could be developed by 2030. Germany’s hydrogen pipeline network is also estimated to reach 5,100km by that year.

Last year, German utility Eon warned the 5GW pipeline of projects will meet only half of the country’s domestic production target by 2030, with little progress on rolling out infrastructure to facilitate a rise in hydrogen demand.

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Author: Polly Martin