11 November 2024
Publication series – 3 of 27 Insights
On 22 October 2024, the Federal Network Agency approved the Germany-wide hydrogen core network, which will form the basis for the national hydrogen infrastructure in future. The core network, which is scheduled for completion by 2032, has a planned total length of 9,040 kilometres and will connect central hydrogen production, import and consumption locations in Germany. The project will therefore make a significant contribution to a climate-neutral energy supply. The estimated investment costs for the project amount to around 18.9 billion euros. Klaus Müller, President of the Federal Network Agency, described the approval as a “starting point for the development of a Germany-wide hydrogen infrastructure”.
The hydrogen core network is a central element of the National Hydrogen Strategy, which pursues the development of a sustainable hydrogen economy as one of the cornerstones of the energy transition. As part of the strategy, Germany plans to build up its own hydrogen electrolysis capacity of ten gigawatts by 2030 to partially cover itself domestic demand. In the long term, however, it is planned that up to 80% of hydrogen will be imported. The overriding goal is to meet industrial demand for climate-neutral hydrogen and reduce dependence on fossil fuels.
The hydrogen core network acts as a link between the main locations for hydrogen production, storage and consumption. This was based on the demand analyses and market surveys of the transmission system operators (TSOs) from the gas network development plans for 2020 and 2022. The infrastructure planning envisages that around 60% of the pipelines will be obtained by converting existing natural gas pipelines to hydrogen, while the remaining 40% will be created as new constructions. This combination of conversion and new construction will lead to a reduction in overall costs on the one hand and an acceleration of expansion on the other.
The structure of the core network is designed to connect so-called hydrogen clusters throughout Germany. These clusters are made up of industrial and commercial areas that benefit from a shared hydrogen supply. The network operators are planning a central connection to the clusters to ensure an efficient and timely supply of hydrogen to the centres of consumption. In addition to the main pipelines, the total investment sum of 18.9 billion euros also includes the costs for gas pressure control and measurement systems. The latter serve to ensure the safe distribution of hydrogen. The 16 transmission system operators involved are responsible for planning and operating the pipelines in close cooperation with local gas distribution networks.
According to the network operators’ detailed plans, around 5,000 kilometres of existing pipelines will be converted to carry hydrogen in the first phase. In addition, the construction of around 3,600 kilometres of new hydrogen pipelines is planned by 2032. This structural expansion of the network will make it possible to sustainably promote the ramp-up of the hydrogen economy in Germany and ensure prompt access to the hydrogen market.
With its core network, Germany is also part of the “European Hydrogen Backbone” (EHB), a European initiative to develop a cross-border hydrogen network. The project comprises 33 transmission system operators from 28 countries and is aiming for a total length of 57,600 kilometres by 2040. The ultimate goal of the EHB is to network European hydrogen production and consumption and to create the conditions for the establishment of an EU-wide hydrogen market. The German core network is designed as a central connection for neighbouring European countries, strengthening Germany as a strategic hub for international hydrogen trading.
Integration into the European network gives Germany the opportunity to benefit from cross-border investments and the exchange of hydrogen resources. According to estimates, the expansion of the EHB will require total investments in the order of 80 to 140 billion euros to drive forward the networking of hydrogen clusters in Europe. This means that the German hydrogen core network will not only make an important contribution to the national energy transition, but also to the European energy transition.
The approval of the hydrogen core network marks the start of an extensive implementation phase. The first steps towards converting existing gas pipelines are to take place as early as 2025. The Federal Network Agency will work closely with the network operators to push ahead with the expansion as planned. The expansion progress will be regularly reviewed as part of a national network development plan for hydrogen and adapted to the development of demand. The network operators are obliged to submit an updated plan for the transmission and hydrogen transport networks every two years to be able to react to changes in demand and production capacities (Section 15 a (1) EnWG).
The coordination of the players involved and the timely realisation of the pipeline construction projects pose major challenges. The planned integration into the European network also requires the consideration of international agreements and technical standards for a smooth exchange of hydrogen within Europe.
The establishment of a hydrogen core network forms the basis for the creation of a forward-looking infrastructure that will enable the long-term realisation of a climate-neutral energy supply in Germany. This new structure promotes the decarbonisation of industry and makes a significant contribution to achieving Germany’s climate targets. The use of hydrogen as a low-emission energy source leads to a reduction in dependence on fossil fuels. In this respect, the hydrogen core network represents an important milestone in the implementation of the energy transition and strengthens Germany’s position as a pioneer for climate-neutral technologies in Europe.
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