Germany to invest €19 billion in 9,000 km hydrogen network

Germany will build a nationwide 9,040 km hydrogen network connecting various industrial areas. In the long term, a future Dutch hydrogen network will also be linked to it. German regulators have approved the construction of the network, Vice Chancellor Robert Habeck announced on Tuesday.

Hydrogen should be used in sectors where renewable energy, such as solar and wind, cannot be used directly, such as in energy-intensive industrial sectors such as steel production.

Hydrogen pipelines

Planners expect hydrogen to be an increasingly important energy source as Germany transitions from fossil fuels to an economy built on renewable energy. The country wants to become climate-neutral by 2045. “The first hydrogen pipelines of the core grid will go into operation as early as next year,” Economy Minister Robert Habeck said during a press conference.

The network covers 9,040 kilometers—significantly shorter than initially assumed. Around 60 percent of the grid will be converted to gas pipelines, and 40 percent will be newly built.

One-third of Germany’s current natural gas consumption

Only pipelines no longer needed for the transportation of fossil fuels will be converted, while an extra 2 billion euros will be invested in additional gas pipelines to ensure the security of supply. Some sections are to be completed before the target year of 2032. Total project costs are forecast at €19.8 billion.

The network should be able to transport up to 278 terawatt hours of hydrogen energy every year—the equivalent of a third of Germany’s current natural gas consumption.

Recently, a major hydrogen pipeline project connecting Norway was canceled. The Norwegian and German governments announced this multi-billion euro project in January 2023, but its sponsors, the Norwegian oil company Equinor and the German electrician RWE, ultimately deemed it too risky.