The Federal Network Agency approved the core network application submitted by the transmission system operators on 22 July 2024 after review and consultation. The intensive planning phase is now complete – there is now a clear roadmap for the implementation of the hydrogen core network. The core network connects central hydrogen locations in all federal states – from production centres and import points to storage facilities and future customers in industrial and power plants.
The approved core network includes a total length of 9,040 km of lines, of which approximately 60% will be converted from previous natural gas operations and the remainder will be newly constructed. In the target year 2032, the input capacity will be 101 GW and the output capacity will be 87 GW.
Federal Minister for Economic Affairs and Climate Protection, Robert Habeck: The hydrogen core network sends a decisive signal about the future viability of Germany as a business location. Because it is a fundamental requirement for the successful expansion of hydrogen production and thus for the decarbonization and competitiveness of industry in Germany. With the approved core network, we create planning certainty for everyone involved – from domestic and foreign hydrogen producers to operators of power plants and storage systems to future industrial users. The planning phase of the core network was very intensive. We quickly created a legal framework that provides security for market participants, while also providing the necessary flexibility to be able to react to changing conditions as the market grows.
With the approval, the plans can now be put into practice quickly. The first hydrogen lines in the core network will be put into operation next year, and construction will then take place gradually up to the target year 2032. The core network is the starting point for new infrastructure and a central component of the energy transition. Germany is a pioneer in Europe and is setting an important example for our European neighbours, with whom we work closely.
Since most of Germany's future hydrogen demand will be met by imports, 13 border crossings to neighbouring European countries are planned. In total, transmission system operators plan to invest 18.9 billion euros by the target year 2032. The core hydrogen network will be built gradually: the first hydrogen lines will be put into operation from 2025. First of all, conversion lines will be put into operation - the Federal Network Agency's plan ensures that only natural gas lines that are no longer needed for transporting natural gas are converted to hydrogen.
The lines of the core network must be built and operated privately and financed through user fees. However, since there will be relatively few buyers initially, the investment costs cannot be passed entirely on to users – so network fees will be limited. The depreciation account ensures that the reduced income in the early stages will be compensated by additional income later. With the exception of projects under the Important Projects of Common European Interest (IPCEI) funded by the federal and state governments, no federal funds flow into the core network lines – but the financing concept includes financial protection for the federal government against unpredictable developments.
The core network is used to transport hydrogen across regions – it is the highway of the hydrogen infrastructure. But it is not the final stage of expansion. The network is being further developed as part of the gas and hydrogen network development plan, which takes place every two years. New or changed requirements and availability are taken into account – all route projects coming into operation from 2028 will be checked in the network development plan and, if there are existing requirements, will be confirmed by the Federal Network Agency. As part of the network development plan, the network can also be expanded if there is a corresponding need.
In this way, transport infrastructure can be developed at market-friendly costs. Work has already begun on the development of the first integrated network development plan, gas and hydrogen, with a draft scenario framework. The first integrated network development plan is expected to be approved by the Federal Network Agency in 2026.
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