Gasunie – Seven questions about hydrogen in Germany

Gasunie – Seven questions about hydrogen in Germany

1. What role does Gasunie play in Germany?

As in the Netherlands, our mission in Germany is to ensure safe, reliable, affordable gas transmission. Unlike the Netherlands, there is not one single national gas TSO in Germany but rather several companies that offer high-pressure gas transmission services. One of the larger of these is Gasunie Deutschland, which operates pipelines in the northern part of Germany.

Gasunie Deutschland manages 4,700 kilometres of gas transmission pipelines in a network that also connects to the grids in the Netherlands, Denmark and the Czech Republic. The former Nord Stream import pipeline was also connected to Gasunie’s network.

2. And what is Gasunie Deutschland doing in the area of hydrogen?

In addition to the energy it currently supplies through natural gas, Gasunie Deutschland is installing pipelines for the transmission of renewable gases like hydrogen. Gasunie Deutschland has been working with other German TSOs to develop a plan to build a national hydrogen transmission network with a total of 10,000 kilometres of pipeline. Between 60 and 70% of the current gas transmission pipeline could be reused for hydrogen transmission with minimal modifications. Gasunie Deutschland has already taken the transition to hydrogen into account when planning its energy infrastructure. What this means is that all new pipelines must also be suitable for the transmission of hydrogen, even when initially used to transport natural gas. Gasunie Deutschland aims to be responsible for over 1,000 kilometres of what in Germany is called the Kernnetz (hydrogen core network). 

3. How far along is Germany in the area of hydrogen?

As in the Netherlands, hydrogen is a key component of the future energy supply in Germany. The German national hydrogen strategy envisions many gigawatts of green hydrogen production, though they still have a way to go. German hydrogen plants currently in operation have a production capacity of around 120 megawatts. These plants produce green hydrogen through electrolysis, that’s to say splitting water molecules into hydrogen and oxygen, using clean electricity. In addition, several hydrogen projects with a total capacity of around 350 MW are under construction or being financed in Germany.

To connect supply of green hydrogen to demand, pipelines are needed. Construction of the hydrogen network is underway, and by the end of 2025 over 250 km of the planned 1,000 km will be ready for use or, in industry jargon, ‘H2-ready’. Gasunie Deutschland is currently working on two sections. The pipelines of the Hyperlink 1 and Hyperlink 2 projects will connect the Dutch hydrogen network to Hamburg, Bremen and Salzgitter, locations where many industries are located. Projects for the import and storage of hydrogen will also be connected to this section of the network. The works mainly concern converting natural gas pipelines for the transmission of hydrogen. The pipeline sections are part of the EU Hy2Infra programme (with the status ‘Important Project of Common European Interest’, or IPCEI). Hyperlink 1 and 2 are scheduled to be commissioned between the end of 2027 and 2029. The German government is providing financial support for the projects.

Germany is also taking concrete steps regarding hydrogen storage. For example, two existing gas storage caverns in Etzel, Lower Saxony, are being adapted for the storage of hydrogen. Construction of the above-ground facility and the injection of hydrogen into the caverns began in May 2025. The site has already started receiving renewable hydrogen. The company supplying the hydrogen, Plug Power, produces its hydrogen using electrolysis powered by grid electricity, with most of its production happening during midday hours when Germany’s renewable energy supply peaks.

4. What bottlenecks is the industry facing, and how are these being resolved?

Rising energy prices, increased international competition, and uncertainty surrounding regulations and subsidies have placed immense pressure on German industry. To strengthen industry’s competitive position, the federal government has decided to offer industrial companies a discount on network tariffs.

Meanwhile, the hydrogen core network is underway and its underlying financing concept has been launched. Still, the pace at which the hydrogen economy is developing is slower than hoped. Neither production nor consumption of hydrogen is expected to get off the ground quickly. This means that, for the time being, carbon capture and storage (CCS) is a major way for heavy industry to reduce its emissions in the short term. In the meantime, these companies are working towards developing a clean production process using electricity and green hydrogen. The new German federal government is currently developing regulations for the transport and storage of CO₂. Furthermore, we are working with the German TSO OGE to develop a cross-border CO₂ network, with a connection from the Ruhr area to the Port of Rotterdam: the Delta Rhine Corridor (DRC). This future pipeline network will connect the Port of Rotterdam with the Chemelot industrial complex in Limburg and industrial clusters in Germany. The DRC will also enable CO₂ captured in Germany or the southern part of the Netherlands to be transported for storage under the North Sea seabed.

The DRC is being cleverly designed: while CO₂ is being transported to the port for storage, hydrogen can flow in the other direction to industrial companies over the same corridor. Not only does this help companies reduce their emissions but it also helps them make the switch to cleaner energy sources, such as hydrogen.

In other words, capturing and storing CO₂ is a particularly good way to reduce greenhouse gas emissions in the short term. Once the hydrogen market becomes sufficiently large, industrial companies can switch to hydrogen to become more sustainable and permanently reduce their carbon emissions.

5. What’s the timeline for green hydrogen development in Germany?

Last year, the German energy regulator, the Federal Network Agency (Bundesnetzagentur, or BNetzA), approved the joint application of the German regional TSOs for the national hydrogen network: Wasserstoff-Kernnetz (hydrogen core network). The intention is to implement this network in phases over the next 10 years, with the first sections of pipeline transmitting hydrogen before 2030. Even though industry is transitioning to hydrogen more slowly than expected, with the knock-on result of a lag in hydrogen production, the infrastructure is being built now already. The need for a future-proof hydrogen economy remains just as high as ever, particularly for heavy industry. This hydrogen infrastructure offers industrial companies and prospective hydrogen producers the certainty they need, which is important when it comes to companies making their long-term investment decisions. To get the hydrogen market off the ground, network tariffs are initially being kept low.

6. Can the Netherlands learn anything from the German approach?

Thanks to the integrated approach to the gas and hydrogen infrastructure and the financial frameworks, where the German government assumes part of the risk of developing the market, the pace of development in Germany may be faster than what we see in the Netherlands. What helps is that the German government has the ambition to get the hydrogen core network off the ground. The permitting procedure is also somewhat easier in Germany. Naturally, here too TSOs must apply for the usual permits before starting on construction or conversion of pipelines. However, once an external expert has established technical suitability, the pipeline can be used for hydrogen transmission.

7. How does hydrogen contribute to strong industry in Germany and Europe?

Many industries, such as steel, chemicals and refining, are hard to abate using electricity alone. Hydrogen, like carbon capture and storage, is a crucial alternative in decarbonising and remaining competitive. Thanks to the possibilities for producing, transporting, and storing hydrogen on a large scale in the EU, the EU is weaning itself off fossil fuels, this way improving its energy independence and geopolitical resilience. Hydrogen is also perfect for temporarily storing surplus energy at times when there is abundant wind and solar power available. Hydrogen is an excellent buffer between the variable supply of renewable energy and the constant high demand of users.

For Germany, as in the Netherlands and the EU, it is crucial to jointly achieve a sustainable economy while holding on to industry. And industrial companies opting to stay in the country is not a given. The loss of industry could be disastrous for the economy, for jobs, and for the country’s resilience. It’s with this in mind that Gasunie sees decarbonisation and offering solutions to hold on to industry as a priority.

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