Germany presents plan for EUR 20bn hydrogen network

German economy minister Robert Habeck on Tuesday unveiled a plan for the development of a core hydrogen network spanning 9,700 km (6,027 mi) across the country, with about 60% utilising retrofitted gas pipelines.

The core hydrogen network is designed to reach all federal provinces with a threshold of 100 MW set as a reference point to determine the areas to which the core network should extend, Habeck said during the presentation. This means that additional distribution network branches will have to be established in addition to the core network, which is necessary to ensure hydrogen supply to all areas.

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The core network is designed for a capacity of 270 TWh, almost three times the projected hydrogen demand for 2030, estimated to be around 100 TWh. In the final stage of development, Germany is expected to produce enough hydrogen to meet 30% to 50% of its domestic demand, with the rest covered by imports.

During the presentation, Habeck was joined by Thomas Goessmann, the head of the association of the supra-regional gas transmission companies in Germany, FNB Gas e.V., who indicated that the estimated investment costs for the network development amount to EUR 19.8 billion (USD 21.23bn).

On behalf of the federal government, gas transmission system operators will be responsible for both the planning and implementation of the hydrogen core network.

The Bundestag approved the plan for the core network last week, and now the Federal Network Agency will commence a consultation period until January 8, 2024, during which adjustments to the draft may be made. The final draft is scheduled to be submitted to the regulator for approval by the end of the first quarter of 2024.

The infrastructure construction is expected to begin next year after the final approval is in place, Goessmann said.