Dutch state-owned gas network operator Gasunie has signalled its intent to develop large-scale hydrogen storage capacity in Germany by joining a pilot project based on salt caverns at the Etzel natural gas hub in Lower Saxony.

Gasunie will work with German oil and gas storage company Storag Etzel on the project, which is called H2cast and is expected to start up in 2026. H2cast is co-funded by the state of Lower Saxony and the German federal government.

“For a well-functioning hydrogen market, large-scale hydrogen storage is a crucial component. Gasunie has the ambition to develop salt caverns for hydrogen storage in both the Netherlands and Germany,” says Han Fennema, CEO of Gasunie.

“For a well-functioning hydrogen market, large-scale hydrogen storage is a crucial component” Fennema, Gasunie

The first step of the project involves making two existing salt caverns suitable for hydrogen storage and connecting them via an above-ground installation to be provided by Gasunie.

The project is strategically located close to Hyperlink, an open access, cross-border hydrogen pipeline network under development by Gasunie in northern Germany. H2cast is also near the port of Wilhelmshaven, where hydrogen import capacity is being developed.

“The industrial scalability of the underground storage is unique for the H2cast pilot. Gasunie will optimally strengthen the project consortium, which is of strategic importance for the Etzel site,” says Boris Richter, managing director of Storag Etzel.

“The pilot project is a starting point for a future value chain to enable the ramp-up of the international hydrogen market.”

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Author: Stuart Penson