Germany’s Federal Network Agency has approved transmission system operators’ (TSOs) applications to build the country’s 9,000km hydrogen core network (HCN), allowing for construction to begin.
Set to cover Germany by 2032, the approved network comprises 9,040km of pipelines; 60% of which will be converted natural gas lines, requiring an estimated €18.9bn ($20.4bn) of investment.
Planned to connect production centres, import areas, storage facilities and end-users, by 2032, the network’s feed-in capacity will be 101GW of hydrogen, with a feed-out capacity of 87GW.
“With the approved core network, we are creating security for everyone involved – from hydrogen producers at home and abroad to the operators of power plants and storage facilities and future industrial users,” said Economic Affairs and Climate Protection Minister, Robert Habeck.
© Federal Network Agency
“With the approval, the plans can now quickly become reality. The first hydrogen pipelines of the core network will go into operation as early as next year, and will then be built up gradually until the target year of 2032.”
13 border crossing points to European countries are planned to meet Germany’s future imported hydrogen demand.
Expected to be built and operated by the private sector, and financed by user fees, TSOs will be able to secure state guarantees to secure loans to cover initial losses on the HCN’s ramp-up.
However, the government has said user fees will be capped to prevent the extortion of customers during early phases of slow uptake.
“Since there will be relatively few customers at the beginning, the investment costs cannot be fully passed on to users – so the network fees are capped,” the government stressed.
“An amortisation account ensures that the shortfall in revenue in the first phase is offset by additional revenue later on.”
During the application phase, EnBW announced its intentions to invest around €1bn to establish the HCN, alongside its subsidiaries terranets bw and VNG/Ontras Gastransport.
Read more:EnBW commits €1bn to hydrogen pipeline projects in Germany
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