EnBW plans to invest around €1 billion in the establishment and expansion of a national hydrogen core network, in line with the German government's strategy. This core network is slated for completion by 2032 and is envisioned to become a key part of the European Hydrogen Backbone (EHB).
The network will primarily supply hydrogen to major industrial centers, power plants, and generation facilities, while also creating transnational corridors for hydrogen imports. “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 further commented, “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 German transmission system operators, EnBW subsidiary terranets bw and VNG/ONTRAS Gastransport have submitted detailed pipeline project proposals to the Federal Network Agency for approval. These pipelines, to be developed through both the conversion of existing pipelines and the construction of new connections, will link Baden-Wurttemberg and large parts of eastern and central Germany to the hydrogen core network.
The Federal Network Agency emphasized that the submission of these applications is a crucial step in establishing the hydrogen core network. The applications include a total pipeline length of 9,666 km, with approximately 60 percent slated for conversion, and anticipated investment costs of €19.7 billion. Klaus Muller, President of the Federal Network Agency, stated, “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.”
Following the establishment of the core network, the hydrogen infrastructure will be expanded through a two-year network development plan, allowing for the integration of additional hydrogen requirements and sources. This development is based on a scenario framework prepared by transmission system operators, which will be reviewed 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 expected to receive approval from the Federal Network Agency within two months. Gusewell noted, “Establishing an efficient hydrogen infrastructure will not happen overnight. It will be a gradual process, for both technical and economic reasons. It will therefore be all the more important to offer effective investment incentives for rapid development and expansion right from the start.” He added, “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.”
