The German government and KfW have entered a significant agreement by signing a loan deal of €24 billion to aid the expansion of a national hydrogen core network. The goal of this initiative is to implement a comprehensive infrastructure network spanning 9,040 km by 2032. While primarily privately financed, the project will see the Federal Network Agency (BNetzA) regulating network fees to ensure user affordability. Additionally, a compensation mechanism will be in place to bridge the financial gap for network operators until revenue from fees exceeds costs. In October 2024, BNetzA greenlit the core hydrogen network project proposed by transmission system operators, involving an estimated investment of €18.9 billion. The network plan includes converting 60% of gas lines to hydrogen and building 40% new lines, with the first conversions scheduled for 2025 and full operation expected by 2032. This network aims to interconnect hydrogen clusters across Germany and potentially with neighboring countries. Moreover, in June 2024, the European Commission approved a €3 billion German state aid scheme to further bolster the development of this Hydrogen Core Network, showcasing strong governmental support for sustainable energy initiatives.