Germany’s plans to develop a €19.8b ($21.55b) national hydrogen pipeline network by 2032 have progressed on two fronts, raising the prospect of construction starting as soon as 2024.

The country’s natural gas transmission system operators (TSOs) have submitted a draft application to develop the project to the Federal Network Agency and the Federal Ministry for Economic Affairs and Climate Protection.

A final proposal is expected to follow in the first quarter of 2024 for final approval by Federal Network Agency, according to TSO industry association FNB Gas.

“This marks the next milestone in the realisation of the core network,” said Barbara Fischer, FNB Gas managing director. The TSOs have “the clear goal” of starting to build the hydrogen network in 2024, FNB Gas added.

“This marks the next milestone in the realisation of the core network” Fischer, FNB Gas

In a further development, the German cabinet has approved a draft law setting out the financing model for the project

The proposals envisage 9,700km of pipelines, of which about 60% would be repurposed natural gas lines and the rest new dedicated hydrogen lines.

The proposals include detailed plans for the network to provide capacity to import hydrogen from neighbouring countries. German hydrogen demand will rise from 55TWh to 95–130TWh (2.4–3.3mt) by 2030, with 50–70% of that demand to be met by imports, according to a revised national hydrogen strategy published earlier in 2023.

Finance model

The draft law on financing the project envisage allowing the TSOs to charge a capped “ramp up fee” to help fund the project. The law also allows for the government to offer state support to the TSOs in the event that the hydrogen market does not take off in line with expectations.

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Author: Stuart Penson