Germany's €3bn Investment in 9,700km Hydrogen Core Network Approved by European Commission
Key Ideas
- The European Commission has approved Germany's plan to invest €3bn in a 9,700km hydrogen core network to support long-distance transport of hydrogen.
- The network will consist of 60% converted natural gas pipelines and 40% new dedicated hydrogen pipelines, expected to be completed by 2032.
- The German financing scheme includes state guarantees to secure loans for transmission system operators and aims to promote the uptake of hydrogen by offering lower tariffs.
- The approval is seen as crucial for triggering investments in hydrogen production and consumption in Europe, aligning with Important Projects of Common European Interest.
The European Commission has given the green light to Germany's ambitious plan to invest €3bn in constructing a 9,700km hydrogen core network (HCN). This network is envisioned to serve as a critical infrastructure for transporting hydrogen across long distances in Germany. The HCN will link hydrogen production hubs with industrial users, storage facilities, power plants, and import routes. The plan involves converting 60% of existing natural gas pipelines for hydrogen transportation, with the remaining 40% to be new dedicated hydrogen pipelines, supported by the German financing scheme. The initiative includes state guarantees to enable transmission system operators to secure more favorable loans, with repayment expected by 2055. By offering lower tariffs initially, the scheme aims to incentivize early adoption of hydrogen and facilitate market growth. The network is slated for completion by 2032 and is viewed as complementing the European Commission's Important Projects of Common European Interest (IPCEI). Margrethe Vestager, Executive Vice-President for competition policy, emphasized the importance of core hydrogen pipeline networks in driving investments in hydrogen production and consumption. The approval of Germany's investment plan is lauded for its potential to bolster the European hydrogen market while maintaining competition. This development marks a significant step towards advancing the energy transition and fostering a sustainable hydrogen economy in Europe.
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Europe
Infrastructure
Investment
Energy Transition
Market Development
European Commission
Pipeline Network
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