There are great hopes for hydrogen. Because if green electricity is used in its production, it is very climate-friendly. But there is currently still a lack of infrastructure for hydrogen transport. That should change – how, Federal Economics Minister Robert Habeck (Greens) presented details on Tuesday in Berlin together with a representative of the German gas transport companies.
“We now have to build a network for an energy source that is not yet there,” said Habeck, describing the situation. Or in the words of the CEO of FNB Gas, the association of national gas transport companies, Thomas Gößmann: “We are making advance payments to solve the chicken-and-egg problem.”
What is the hydrogen core network about?
The core network is intended to include the most important lines of the future hydrogen transport and import infrastructure, a total of 9,700 kilometers of lines. Habeck compared this to the highways in the road network. The exit capacity should be 270 terawatt hours. Habeck said that demand is currently expected to be between 95 and 130 terawatt hours by 2030. “That means we’re planning for the future.” The Association of Municipal Companies (VKU) praised this as far-sighted. According to Gößmann, 60 percent of the hydrogen core network will be covered by retrofitting existing gas pipelines.
Who pays for all of this?
The private sector is expected to cover the investment costs of 19.8 billion euros for the core network. However, the federal government steps in with a so-called amortization account. The idea behind it: to spread the fees over a longer period of time. The network fees for hydrogen users should initially be capped in order not to endanger the politically desired hydrogen ramp-up.
However, since only a few users of the core network are expected in the first few years, a cost gap remains due to the high investment costs. The federal government should temporarily finance this difference with the amortization account. When more users are connected to the network later and pay fees, the money should come in again. If that doesn’t happen by 2055, the federal government will largely make up the shortfall, but the operators of the hydrogen core network should cover up to 24 percent. “With this “fee shift”, subsequent users will bear the costs of setting up the network,” explained the ministry. The federal cabinet should decide to set up the account this Wednesday, said Habeck.
What about smaller lines?
The planning for the state, federal or district roads of the hydrogen network, as Habeck called them, still needs to be done. This should begin this Wednesday after the necessary decision by the Federal Cabinet, said Habeck.
The Federal Association of the Energy and Water Industry (BDEW) explained that it was right to start planning the core network, but noted: “In order to make Germany an industrial location climate-neutral and future-proof, the framework conditions for the connecting lines to the customer ( distribution networks) are created.” 1.8 million potential hydrogen customers in the industrial and commercial sectors are connected to the gas distribution network. Without smaller, branched services, these would not be achieved.
What role should hydrogen play in the future?
Hydrogen is an important source of hope for the energy transition, which should help reduce greenhouse gas emissions in industry, among other things.
Where should the hydrogen come from?
According to Habeck’s estimates, Germany will eventually produce 30 to 50 percent of its hydrogen needs itself and import the rest. This should happen via pipelines or in the form of ammonia by ship. Habeck emphasized that this would make Germany more independent of imports than is currently the case with oil, gas and hard coal, where almost 100 percent is imported. Some of the future hydrogen imports will come from Norway, but the federal government is also hoping for African countries like Nigeria, which have better conditions for solar power thanks to more hours of sunshine.
What’s next?
The Federal Ministry of Economics is currently working “hard” on a hydrogen acceleration law, which should be passed by the cabinet this year, said Habeck. This should create the conditions for “maximum acceleration”, similar to the floating import terminals for liquid gas.
Ministry on the hydrogen core network FNB on the hydrogen core network Further information from FNB on the hydrogen core network Ministry of Economics on the subject of hydrogen
