The German Federal Network Agency (BNetzA) has set a €25/kWh/h annual rate for operators looking to use the country’s 9,000km hydrogen core network.
The nationwide fixed fee will apply to everyone using the network until 2055, with regulators checking its progress every three years.
The German Government has said the ramp-up fee is required to cover the high upfront costs of building and operating the network at a time when demand is still low.
They aim to keep prices reasonable to encourage early use and spreading costs over time. This approach assumes that as demand grows, future revenues will offset initial losses.
“With our proposal, we ensure the use of the hydrogen core network at a reasonable price,” Klaus Müller, President of BnetzA said. “At the same time, we ensure solid counter-financing for the construction and operation of hydrogen networks from private funds.”
The industry can give feedback on the ramp-up fee up until May 2, 2025.
It remains unclear what specific mechanism BNetzA intends to use to determine or clarify the cost implications on a per-tonne, per-kilogram, or per-unit basis for hydrogen transported through the network.
H2 View has contacted BNetzA for comment.
The announcement comes shortly after the German Government made its first loan payment for the construction of the German network.
KfW, which is supporting the development with a €24bn ($25.9bn) loan, transferred €172m ($186m) to the H2 Amortisationskonto (AMKG) special purpose vehicle to make the payment.
Furthermore, Gascade has already begun filling hydrogen in the first section of its pipeline project, which will become part of the core network.
Germany’s 9,000km hydrogen gamble: Will the Wasserstoff-Kernnetz pay off?
“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.”
That was the message from German Vice-Chancellor and Minister for Economic Affairs and Climate Protection, Robert Habeck, when his government’s plans for a 9,040km ‘Wasserstoff-Kernnetz’ or hydrogen core network (HCN) were approved by the Federal Network Agency (BNetZA).
The HCN will cover the width of the country, resulting in a feed-in capacity of 101GW of hydrogen and a feed-out capacity of 87GW. Expected to complement the nation’s ambitious hydrogen production and import strategy, the network will connect import terminals to industrial hubs located throughout the country.
It’s a mammoth ambition.
Continue reading here.
