Germany due to complete first 525km of national hydrogen pipeline network this year
Longest section due to enter operation this year will stretch almost 400km
The first 525km of Germany’s 9,041km core hydrogen pipeline network is due to be completed this year, including a section that will stretch almost 400km south from the Baltic Sea.
But it is not yet known if hydrogen will actually flow to customers through the pipelines in 2025.
“That is a question for the market, ie, the traders,” said FNB Gas, the German association of gas transmission grid operators.
A total of 507km of the first 525km will consist of existing gas pipelines converted to H2.
This includes the section of almost 400kim that will run from the Baltic port of Lubmin to the village of Bobbau in the eastern state of Saxony-Anhalt.
Another 25km of gas pipelines will be converted to hydrogen in Saxony-Anhalt this year, running between the town of Bad Lauchstädt — the site of a 30MW green hydrogen project due to come online this year and an H2 salt cavern storage facility — and a TotalEnergies refinery in the town of Leuna.
A 50km gas pipeline between Lingen, Lower Saxony — the location of BP’s 100MW green hydrogen project — and Legden, North-Rhine Westphalia, is also due to be completed this year.
Only 142km of the network are due to be completed in 2026, only 2km of which will consist of new pipelines, according to FNB Gas.
Germany state-owned bank KfW signed off on a €24bn ($24.8bn) loan in November to finance the government’s so-called “amortisation account” for subsidising the core network of hydrogen pipelines.
In the early 2030s, the network will likely see low demand from a small pool of initial users. However, pipeline operators are also capped on how much they can charge customers to recoup an expected €18.9bn of combined investments into H2 infrastructure.
As such, the German government has set up the amorisation account, which will cover the difference between the operators’ low revenues and high investment costs — which pipeline operators must repay as more users come onstream and revenues increase.
If the account is not settled by 2055, the government will foot most of the remaining deficit, while operators of the core network will have to pay for 24% of the shortfall.
While the country aims to install 10GW of electrolysers by 2030, up to 70% of Germany’s predicted 95-130TWh of hydrogen demand by that year is expected to be met by imports.