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The German gas operators' association FNB has unveiled plans for a 11,200 km "core" hydrogen network

2023-07-17

In response to the German government's request, Germany's largest natural gas network operator FNB recently announced a plan to build more than 11,000 kilometers of core hydrogen network in Germany by 2032.

The Association of German Gas Network Operators (FNB Gas) is a Gas Transport service operator (tso) responsible for long-distance gas transport across 16 states in Germany, providing the pipeline network and associated infrastructure that combines German industry's demand for green hydrogen with the production and import of renewable hydrogen.

FNB plans to lay 11,200 km of pipeline network in Germany (see map below), concentrated in the industrial heartland of western Germany, near Seldorf.

It's not clear how FNB plans to convert existing gas pipelines to hydrogen without cutting off service to its main gas customers, or how the plan will be financed (some of the routes to be converted currently have two or three parallel gas networks, meaning one can be converted to hydrogen and one or two can continue to supply gas).

A closer look at plans for a hydrogen pipeline network. The dark blue solid line indicates that the existing gas network will be converted to hydrogen,

The dark blue dashed line shows the new hydrogen network, and the blue green dashed line shows an example of an alternative. Photo from :FNB

The main target customers with demand for hydrogen include steel producers, the chemical industry (including ammonia producers), oil refineries and glass producers, as well as small factories producing ceramics and bricks.

According to the project plan, by 2030, the network will be able to transport hydrogen from all 10GW of electrolytic cell capacity in Germany, and by 2032, the goal is to have enough capacity to transport 15GWth (calorific value as measured by heat) of hydrogen.

The project model prioritizes connections to major green hydrogen projects on the EU list of Projects of Common Interest (IPCEI) and Projects of Common Interest (PCI). This means that the project has been singled out as important by Brussels (EU) for EU subsidies.

Other cell projects were also considered, including subsidized offshore cell projects such as the 1GW Aquaductus scheme and research projects, as well as other large projects not on the IPCEI list, although only 50% of their capacity was modelled.

The pipeline network plan also includes the main entry and exit points to Germany's existing gas network from neighboring countries such as the Netherlands, Belgium, Austria, Switzerland and Poland. Denmark is also talking about building a new pipeline.

Germany imports 70% of its natural gas needs, according to government data. The German government wants gas network operators to be able to finance projects entirely with private sector cash through network fees.

However, the German government said it would consider some subsidies as part of a detailed regulatory proposal for the program. The plan is currently being developed.

The FNB has called for the proposed regulation to be published as soon as possible to allow companies to raise funds for the construction of the network.

Thomas G??, chairman of FNB mann said the German-wide core hydrogen network is the desired departure signal for all players in the value chain. However, the key is the legal anchoring of the financing model to ensure that network fees can be marketable and network operators can access capital market financing.

The pipeline network plan appears to include plans announced by the end of 2022 for three Tsos to transport hydrogen through brand new (currently underutilized and even empty) gas networks built to transport Russian gas from the submarine import networks NordStream 2 and NordStream 1. NordStream 2 was blown up in a sabotage attack in 2022, while NordStream 1 was mothballed after Russian gas stopped flowing.

The 11,000km "Flow" proposed by Gascade, Ontras and Terranets: The "Making Hydrogen Happen" concept will begin in Lubmin, on Germany's Baltic coast, where the H2E 100 MW electrolyser project is also located, The project utilizes the Gascade 480km high pressure NordStream 2 carrier pipeline, the European Gas Pipeline Link (EUGAL) and the NordStream 1 pipeline Ostsee-Pipeline-Anbindungsleitung (OPAL).

The pipeline network project was approved by the German Federal Government Cabinet in June 2023 as part of the amendment to the Energy Industry Act (ENWG-E) and will be implemented in 2032. The project plan has now been open for more than two weeks, with the German government particularly encouraging regional network operators in Germany to submit comments, and the final version will be submitted to the Federal Network Agency (BNetzA) for approval.

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