The German Bundestag approved the second amendment to the Energy Industry Act (EnWG). This law establishes the legal framework for the second stage of hydrogen network development by introducing comprehensive integrated network development planning for natural gas and the future hydrogen transport network. The law also contains the necessary regulations for financing the central hydrogen network, on the basis of which an increase in the private sector can take place.

Hydrogen as key to energy transition

Federal Minister of Economics and Climate Protection Robert Habeck emphasized the importance of hydrogen for the decarbonization of industry and the acceleration of the energy transition. The new law creates a reliable framework for the financing of the hydrogen network core and the planning of network development. "Hydrogen is of exceptional importance, especially for decisively advancing the decarbonization of industry and accelerating the energy transition in Germany. This requires an efficient hydrogen transport infrastructure. The course has already been set for the development of the hydrogen transport network. With the law we create a reliable framework for the financing of the central hydrogen network and further planning of the network development," he said.

Two-stage network expansion

The network expansion will be carried out in two stages:

First stage: The hydrogen network core will connect the key hydrogen locations in Germany in the coming years. The legal foundations for this have already been laid by the end of 2023.

Second stage: The core network will become a continuous planning of the development of integrated networks for gas and hydrogen. Industrial centers, storage facilities, power plants and import corridors will be connected.

The core network pipelines are planned to be gradually put into operation from 2025 to 2032.

Ongoing network development planning

With the law, ongoing network development planning for gas and hydrogen is anchored in the EnWG. From 2026 onwards, the Federal Network Agency will approve an integrated network development plan for gas and hydrogen every two years. This includes public consultation processes, the establishment of a coordination office, and a database.

Temporal flexibility for core network projects

The law allows for temporal flexibility for individual core network projects. Projects included in the original application can be realized until 2037, provided this is determined by the Federal Network Agency. This flexibility prevents costly vacancies and supports an efficient ramp-up of the hydrogen economy.

Financing of the hydrogen core network

The law regulates the financing of the core network, which still requires approval from the European Commission under state aid law. The core network is to be financed through network charges, which will be capped to avoid high costs in the early years. Operators will be granted a risk-appropriate interest rate and a subsidiary risk protection. Formal applications for approval of the core network can be submitted until May 21, 2024, with the final approval given by the Federal Network Agency.

With the Bundestag's decision, the first core network projects can be implemented operationally from the summer, marking a significant step towards the establishment of a powerful hydrogen infrastructure in Germany.