Germany is setting a new benchmark in hydrogen infrastructure finance. With the disbursement of 172 million euros from the Amortisationskonto GmbH (AMKG) to hydrogen core network operators, the country is implementing a unique strategy that enables private-sector investment with minimal risk. The initiative was jointly announced by the Federal Ministries of Finance and Economic Affairs and Climate Action.

The financial framework is designed to be fully funded through private network tariffs paid by users connected to the grid. However, to avoid overburdening early adopters, Germany has introduced a tariff cap system.

The difference between capped revenues and infrastructure investment costs will be temporarily financed via the AMKG and later offset through increased revenues as more users connect.

“The core of this strategy is to ensure that ramp-up costs are not borne solely by the first movers,” explains Juan Zurbarán, Director of Octant Solutions.

For this purpose, H2 Amortisationskonto GmbH, coordinated by Trading Hub Europe GmbH (THE) and other shareholders, operates as a dedicated financial vehicle. The interim loan, issued by state development bank KfW, strengthens the model with institutional credibility.

Germany’s hydrogen core network will span 9,040 km, mostly composed of repurposed natural gas pipelines. Its phased rollout begins this year. To align investment with demand, the Federal Network Agency (Bundesnetzagentur) will revise the grid plan every two years.

This is a cornerstone of Germany’s industrial decarbonisation strategy. As declared by the ministries in their joint statement:
“By constructing a hydrogen core network, we are creating a fundamental prerequisite for the ramp-up of the hydrogen economy. This solves a key task: linking suppliers and consumers.”

A Strategic Rollout Towards 2032

According to BDEW, the full deployment of the Hydrogen-Kernnetz is planned for completion by 2032, with over 60% of the route built on existing infrastructure. Already, 495 specific connection points have been identified, linking producers, major consumers and import hubs.

With an estimated cost of €19 billion, this is one of Germany’s most ambitious infrastructure undertakings. The goal is to provide reliable and flexible supply to hard-to-electrify sectors such as steel, fertilisers and petrochemicals.

“Hydrogen will reach large industrial consumers in Germany. In this way, climate-neutral transformation becomes reality,” affirmed the Ministry for Economic Affairs and Climate Action.

Germany as a European Benchmark

The activation of this scheme occurs at a time when many hydrogen projects across Europe are stalled. According to Hydrogen Europe Quarterly (Q1 2025), only 4% of global hydrogen projects have reached the Final Investment Decision (FID). Regulatory uncertainty, inflation and lack of offtake agreements continue to hinder progress.

Germany’s model contrasts starkly: the AMKG has already executed its first transfer, and a second one is scheduled for March 2026. The mechanism includes a triannual tariff adjustment and federal financial safeguards, significantly lowering investor risk.

Strategic Partnerships and a Message to Spain

Zurbarán sees this as an opportunity for international cooperation:
“I encourage professionals and companies in Spain to explore how partnerships with German actors can lead to competitive advantages in both decarbonisation and energy security,” he notes.

Germany is actively pursuing cross-border hydrogen corridors with Denmark, France, the Netherlands and Belgium, positioning itself as the backbone of a European hydrogen economy.

Nationally, BDEW highlights that long-term offtake commitments from industrial users will be essential to trigger more FIDs. This has proven to be a bottleneck in other EU schemes such as the IPCEI framework.

Infrastructure and Policy in Lockstep

Germany’s approach is a rare example of synchronised infrastructure planning and financial architecture. While other EU member states face delays in disbursement and fragmented project pipelines, the German model is already operational, predictable and scalable.

“Germany’s financial structure is setting the pace across Europe,” concludes Zurbarán. “It’s time to treat the energy transition as a coordinated effort—where private investment and public policy evolve in unison.”