Germany's €3 Billion Hydrogen Transmission Network Plan Approved by EU
Key Ideas
  • Germany receives EU approval for a €3 billion plan to establish a hydrogen transmission network across Europe.
  • The project involves repurposing existing gas pipelines and constructing new ones, with operations expected to commence by 2025.
  • State guarantees will assist transmission operators in obtaining more favorable loans, even though initial usage of the network is projected to be low.
  • Loans at below-market rates will be provided by the state-backed Kreditanstalt für Wiederaufbau, with a repayment timeline set for 2055.
Germany has secured European Union approval for a €3 billion initiative aimed at developing a hydrogen transmission network that will span multiple EU member states. The plan involves repurposing current gas pipelines for hydrogen use and constructing new pipelines, with the first operational network anticipated to be in place by 2025. To support this endeavor, the German government will offer loans to facilitate the transformation of existing infrastructure and the building of additional pipelines. State guarantees will be provided to aid transmission service operators in accessing more advantageous loans, despite the initial projection of limited network users. It is expected that tariffs may need to be offered below actual costs initially to drive uptake of the network. The loans, set at rates below market standards, will be disbursed by the state-backed Kreditanstalt für Wiederaufbau and are scheduled to be repaid by 2055.
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