Germany is moving full speed ahead with the construction of its central hydrogen network, a fundamental pillar in meeting its climate targets. Over the next seven years, the country aims to establish a hydrogen transport infrastructure that will link industrial hubs, producers, and underground storage facilities. This project will not only ensure supply security but also enhance hydrogen’s competitiveness in the European energy market.

According to the BDEW report, from 2025 onwards, construction of the network will begin, integrating over 9,000 kilometres of pipelines, which will be fully operational by 2032. The estimated investment for its development stands at 19 billion euros, a significant effort that underscores the government’s and industry’s commitment to green hydrogen as a key energy vector.

The Role of Salt Cavern Storage

One of the essential components of the network will be underground storage in salt caverns, an efficient solution to manage the intermittency of renewable energy and stabilise hydrogen supply. Companies such as EWE AG are already working on converting natural gas storage facilities for hydrogen use.

“There is a strong analogy between hydrogen storage and natural gas storage,” explains Tobias Moldenhauer, Head of Hydrogen at EWE AG. However, adapting these infrastructures requires investments in compressors, purification systems, and specialised valves. The modernisation of each facility is estimated to take between three and eight years, depending on the approval process.

Beyond storage, these caverns will play a crucial role in price stabilisation, allowing for better supply-demand management.

Repurposing Natural Gas Infrastructure: An Economic Advantage

Nearly 60% of the central network will be built using existing natural gas pipelines, which will cut costs by 90% compared to constructing an entirely new network. This approach will accelerate the transition while preserving existing infrastructure.

According to Carina Gewehr, Head of Regulation and Market at GASCADE, the conversion of pipelines is a relatively swift process. “Adapting a natural gas pipeline for hydrogen transport can be completed in six to twelve months,” Gewehr states.

Despite this advantage, the main challenge is ensuring a continued supply of natural gas to existing customers while repurposing the pipelines. Strategic planning will be essential to avoid disruptions in the energy supply chain.

Germany as Europe’s Hydrogen Hub

Germany is not only investing in hydrogen for domestic consumption but also positioning itself as a key hub for distribution across Europe. Its strategic location and storage capacity make it an essential node in the future European hydrogen network.

“The national network must be connected with our neighbouring countries,” states Ann-Kathrin Klaas, Head of Hydrogen Research at the Institute of Energy Economics, University of Cologne. Otherwise, inefficiencies could arise, affecting hydrogen’s competitiveness in the market.

To address this, Germany is already working on integrating with neighbouring countries’ infrastructures, ensuring that the network not only drives local energy transition but also facilitates the adoption of hydrogen at a European level.

Economic Challenges and Opportunities

As hydrogen demand grows across Europe, economic and regulatory challenges are becoming increasingly apparent. According to Germany’s National Hydrogen Strategy, demand is expected to triple by 2030, rising from 55 terawatt-hours to 130 terawatt-hours per year. However, domestic hydrogen production cannot meet this demand, making it necessary to import up to 70% of the country’s hydrogen supply.

For industry players, this presents a growth opportunity. “Hydrogen will thrive if it is optimised across the entire value chain,” Moldenhauer asserts, highlighting the importance of securing a sustainable supply and competitive costs.

To encourage hydrogen adoption, the government must implement subsidies and financial incentives to support its rollout. Currently, production and transport costs remain a challenge to its competitiveness against other energy sources.

Green Hydrogen: The Future of Heavy Industry

Hydrogen will be crucial in decarbonising industries such as chemicals, steel production, and heavy transport. In this context, the central network will ensure that companies can access green hydrogen at competitive prices.

Projects such as GASCADE’s “Flow – Making Hydrogen Happen”, which is converting gas pipelines for hydrogen transport, demonstrate the industry’s commitment to accelerating this transition. “With the central network model and the regulatory framework in place, we are pioneers in Europe,” Gewehr emphasises.

Germany is taking decisive steps towards becoming a European leader in hydrogen. With a 9,000-kilometre pipeline network, an expanding underground storage infrastructure, and a strategy for integration with European markets, the country is positioning itself at the forefront of the energy transition.

Despite challenges related to costs and regulations, hydrogen is emerging as a key pillar in achieving climate neutrality by 2045. Germany’s central hydrogen network will not only drive its domestic industry but will also lay the foundations for a more sustainable and efficient European energy market.