Green light for development of Germany-wide hydrogen core network

The Federal Network Agency (BNetzA) has approved the construction of the Germany-wide hydrogen core network, expected to be created by 2032.

According to FNB Gas, the association of supra-regional gas transmission companies in Germany, the total length of the approved core network is 9,040 kilometers. The network consists mainly of converted natural gas pipelines (approximately 60%), and the investment costs amount to €18.9 billion. The feed-in and exit capacities amount to around 101 GW and 87 GW respectively.

Thomas Gößmann, Chairman of the Board of FNB Gas, commented: “With the hydrogen core network, we are laying the foundation for a new energy system. It offers a historic opportunity for Germany to position itself as a pioneer in the hydrogen economy. In doing so, we are making an advance contribution to transmission system operators and creating the basis for a climate-neutral industry and energy supply. The development of the H2 market is now a joint task: all players are required to actively drive forward the ramp-up. Especially in the current economic situation, this requires favorable framework conditions to trigger private investment along the entire H2 value chain.”

One of the participants of the project, German offshore wind-to-hydrogen initiative AquaVentus, noted that the approval “marks a significant step forward for the future of the hydrogen economy and is a strong signal for the expansion of sustainable energy solutions.”

The next step for the transmission system operators (TSOs) is to start building the core network. FNB Gas revealed that the first lines are to be converted to hydrogen as early as next year. As for the BNetzA, it is expected to set the ramp-up fee in the second half of 2024.

Regulations still need to be developed with regard to a market model for hydrogen, including the marketing of transport capacities, FNB said, pointing out that in addition, future market roles such as storage, particularly in the market ramp-up phase, have not yet been clarified.

“For the market ramp-up to succeed overall, it is important that policymakers create reliable framework conditions for the hydrogen ramp-up on the generation and demand side. Another focus is on the further development of the core network in order to take additional requirements and locations into account as part of integrated network development planning for gas and hydrogen (stage 2). The transformation of the distribution grids is also important for this in order to develop an area-wide hydrogen grid,” FNB Gas claimed.

To remind, FNB Gas submitted the official application for the development of the German hydrogen core network to BNetzA on July 22, 2024.