The European Commission has approved, under EU State aid rules, a €3bn German aid scheme to support the construction of the Hydrogen Core Network (‘HCN'), a system of long-distance transport pipelines for hydrogen connecting Germany and several Member States. The measure aims to facilitate investments in the construction of the HCN including investments such as repurposing of existing gas pipelines to transport hydrogen, and building new hydrogen pipelines and compressor stations. The construction and operation of the HCN will be financed by hydrogen transmission system operators (TSOs), who will be selected by the German federal network agency (Bundesnetzagentur), to receive a State guarantee which will allow the TSOs to obtain more favourable loans to cover initial losses in the ramp-up phase of the HCN. The loans will be paid back over a period ending in 2055, with reimbursements being progressively backloaded in line with expected increase in hydrogen demand. The first major pipeline is expected to be operational as from 2025, while the completion of the entire HCN is expected in 2032.
Germany plans to add 8.8 GW of H2 plants by 2035 and to develop almost 10 000 km of hydrogen network by 2032.
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