EnBW initially intends to invest around €1bn in establishing and expanding a national hydrogen core network, in accordance with the German government’s plans.
The core network is set to be built by 2032 and become a key component of a future European Hydrogen Backbone (EHB).
The connection to the core network will especially supply hydrogen to major industrial centres, power plants and generation facilities in the future, while transnational corridors for hydrogen imports will also be opened.
“The hydrogen core network represents the first step into the hydrogen economy of the future, establishing the basis for the complete decarbonization of the German economy and the achievement of climate targets,” said Dirk Gusewell, EnBW’s Board Member for System Critical Infrastructure.
He added: “EnBW welcomes and supports this groundbreaking project.
“This marks the beginning of another important chapter in the energy transition, in which our company will invest a total of around 40 billion euros by 2030.”
As part of a joint application by the German transmission system operators, the EnBW subsidiary terranets bw and VNG/ONTRAS Gastransport have submitted concrete commitments for pipeline projects to the Federal Network Agency for approval.
These pipelines, which are being created by converting existing pipelines, but also by building new connections, are set to connect Baden-Wurttemberg and large parts of eastern and central Germany to the hydrogen core network.
Federal Network Agency stated that submission of applications by the transmission system operators of the gas network is an “essential step for the establishment of the hydrogen core network”.
In total, the applications provide for a pipeline length of 9,666 km (of which around 60 percent are to be converted) with expected investment costs of €19.7bn.
“We take a close look at the network applied for and check whether it meets the legal requirements.
“On the basis of approval by the Federal Network Agency, the construction of the hydrogen core network will begin,” said Klaus Muller, President of the Federal Network Agency.
After the core network, the hydrogen infrastructure will be continuously developed in the form of a two-year network development plan, so that further hydrogen requirements and sources can be successively integrated.
The basis for this is the scenario framework drawn up by the transmission system operators, which will be consulted by the Federal Network Agency in the autumn.
The application for the hydrogen core network is based on Section 28q of the Energy Industry Act and is to be approved by the Federal Network Agency within two months.
“Establishing an efficient hydrogen infrastructure will not happen overnight.
“It will be a gradual process, for both technical and economic reasons,” said Gusewell.
He added: “It will therefore be all the more important to offer effective investment incentives for rapid development and expansion right from the start.
“With the amortization account, the legislature has laid the foundations for compensating for the difference between the high investment costs and the initially low income from the network user charges.
“Other improvements to the financing framework that we demanded, however, such as a reduction in the deductible for the transmission system operators, have not been taken into account.
“We still see a need for improvement here.”