Germany to invest around €20 billion in hydrogen infrastructure by 2032

The country's gas transportation system operators submitted a joint application for the planned basic hydrogen network

Germany’s gas transmission system operators have submitted a joint application for a planned core hydrogen network to the Federal Grid Agency (BNetzA), Clean Energy Wire reports.

The planned network, which should be completed by 2032, will connect hydrogen production, consumption, storage and import centers. BNetzA over the next two months will consider the application, conduct public consultations and approve them. After the approval of the Federal Network Agency, the construction of the main hydrogen network begins.

In total, 9666 kilometers of lines are included in the plan. Some of them have the status of an important project of common European interest (IPCEI), so they receive special funding from the federal government and the governments of the federal states. About 60% of the future network are existing lines that are now used for gas transportation. Investment costs amount to €19.7 billion.

«Today’s basic network program is a crucial step towards the creation of hydrogen infrastructure,» said Robert Habeck, Minister of Economy and Climate.

All federal lands will be connected to the network to create a regional balance. It will also be integrated into the EU’s hydrogen infrastructure.

The provisions on the financing of the core network were approved by the European Commission in June this year. At the same time, it is expected that the private sector will pay for the lines at the expense of user fees. The main network is the basis for hydrogen infrastructure, its expansion is expected in the future. The first is planned to be launched in 2025.

At the same time, Italy in the fall will present a network for transporting hydrogen from the southern Mediterranean to Northern Europe, Reuters reports citing Energy Minister Gilberto Picetto Fratina. The official noted that Switzerland may also be involved.

The so-called SouthH2 corridor will connect North Africa, Italy, Austria and Germany, allowing renewable hydrogen produced in the southern Mediterranean to reach European industrial plants. The project, which involves a group of companies including the Italian gas network operator Snam, received priority status from the European Commission last year. The plan was officially announced in May when energy ministers from Italy, Austria and Germany signed a cooperation agreement as part of the EU’s strategy to decarbonise its industry.

As GMK Center reported earlier, in June of this year, the European Commission announced the launch of work on a pilot mechanism for the development of the hydrogen market. The mechanism is aimed at increasing the transparency of supply and demand in the hydrogen market of the block.