EnBW announced plans to invest 1 billion euros ($1.09 billion) in Germany’s upcoming national hydrogen transport network. This network, set to start operations by 2032, will carry new and imported hydrogen, a cleaner alternative to fossil fuels.
Germany aims to reduce its dependence on oil and natural gas by boosting hydrogen use, which can lower carbon emissions when produced using renewable electricity. Given limited land for wind and solar power, 70% of Germany’s hydrogen will be imported from regions where it’s cheaper to produce.
EnBW’s investment is part of a national approval process recently opened by the energy regulator, Bundesnetzagentur. “The hydrogen core network is crucial for Germany’s future hydrogen economy and climate goals,” said EnBW board member Dirk Guesewell.
The industry group FNB, representing German gas transmission operators, submitted the network plans, covering 9,666 km of pipelines costing about 19.7 billion euros. Construction is expected to start in 2025, pending regulatory approval in September. The network will deliver 278 terawatt hours of hydrogen annually, about a third of Germany’s 2021 gas usage.
The project will be funded partly by the government through amortisation accounts, with operators recouping costs via network fees and capital market investments. About 60% of the network will convert existing natural gas pipelines to hydrogen, with new pipelines also being built.
EnBW, along with subsidiaries VNG and terranets, plans to link regional transport lines in eastern and southwestern Germany. Additionally, Berlin’s Gasag has submitted plans to convert 60 km of the city’s gas pipelines to hydrogen to supply heat plants currently using gas.
