VNG Group's Historic Investment in Central German Hydrogen Core Network
Key Ideas
  • Ontras, a transmission system operator, plans a substantial investment in a future hydrogen core network in Central Germany, converting existing natural gas pipelines to hydrogen.
  • The project aims to connect various industrial centers in Central Germany, contributing to the nationwide hydrogen ramp-up and securing Germany's industrial competitiveness.
  • VNG CEO Ulf Heitmüller views this investment as the largest in the company's history, highlighting its significance in decarbonization efforts and the development of pioneering infrastructure.
  • Despite uncertainties in financing and hydrogen market dynamics, VNG is committed to gradual expansion to mitigate risks and drive further projects in eastern Germany.
The VNG Group's subsidiary, Ontras, is set to make a groundbreaking investment in the future hydrogen core network in Central Germany, with a significant sum estimated in the mid three-digit million range. The project involves converting about 80% of existing natural gas pipelines into hydrogen transport pipelines, covering approximately 600 km in central Germany. Additionally, new pipelines will be constructed to facilitate the transportation of hydrogen. The network's objective is to interconnect the Leipzig area with the central German chemical triangle, industrial centers in Saxony-Anhalt and Lower Saxony, the Berlin region, and the Meissen industrial arc. The CEO of VNG, Ulf Heitmüller, anticipates that this project will be the company's most substantial investment in its 65-year history, emphasizing its crucial role in advancing decarbonization efforts and establishing vital infrastructure to support the national hydrogen ramp-up. Despite challenges related to financing uncertainties and evolving hydrogen market conditions, VNG remains committed to the gradual expansion of the core network, with a particular focus on eastern Germany. The company's strategic approach aims to mitigate risks and potentially explore further projects if favorable financial conditions arise. This initiative signifies a significant milestone in Germany's transition to a hydrogen-based economy and underscores VNG's dedication to supporting industrial development and enhancing the country's competitiveness.
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