Germany's Bundestag Approves Hydrogen Highway Network

Key Points:

• Approved Legislation: The Bundestag has passed a law supporting a national hydrogen network.
• Network Scale: The network will span 9,700 kilometers, largely repurposing existing infrastructure.
• Economic Impact: Hydrogen is pivotal for Germany's transition to a greener economy and industrial future.
• Financing: The project is expected to be privately funded with government support.

The Bundestag, Germany's federal parliament, has enacted legislation paving the way for a vast national hydrogen network. The law modifies the Energy Industry Act and establishes a framework for financing this ambitious project. While the legislation awaits approval by the Federal Council, it represents a significant step towards Germany's climate-conscious economic transformation.

Hydrogen, increasingly produced from renewable sources, is seen as vital for decarbonizing industries like steel, chemicals, and cement. It's also viewed as a potential clean fuel for shipping, heating, occasional power generation, and offers unique advantages over electricity in energy storage.

The core network, projected to cost around 20 billion euros, is expected to be largely completed by 2032, with some projects potentially extending to 2037.  The aim is to connect major industrial hubs, storage sites, and power plants. Much of the network will involve repurposing existing gas infrastructure.

Economics Minister Robert Habeck emphasised the groundbreaking nature of the law, framing it as an investment in Germany's long-term sustainability and economic competitiveness. He indicated that the network would be privately financed with a strong government backing.

Industry leaders like Kerstin Andreae, head of the Federal Association of the Energy Industry (BDEW), welcomed the decision, calling the hydrogen network essential for the energy shift and broader economic modernisation.