Source: energate

Instead, economics minister Robert Habeck (Greens) now supports the concept of a privately organised hydrogen grid based on the proposal of the transmission system operators (FNB), energate has learned from ministry sources. After the long stalemate of the past months, the energy sector and industrial companies see this as a good signal and the right decision. Especially among the grid operators, the idea of the federal government to establish the hydrogen grid under state management had caused concern.

The change of course does not come as a surprise, however, because state participation was no longer part of the National Hydrogen Strategy in the drafts that have become known. In addition, an amendment to the Energy Security Act provides that companies under state trusteeship can become involved in hydrogen, but not as part of a state-owned grid company, explained the hydrogen commissioner of the SPD (Social Democratic Party) parliamentary group, Andreas Rimkus (SPD), in an interview with energate. "The state should concentrate on what it can do, namely speeding up and streamlining procedures."

Starting grid of 1,700 kilometres in length

The Federal Ministry of Economics and Technology is now focusing on the rapid and cost-effective development of the hydrogen grid infrastructure. A draft for an approximately 1,700-kilometre-long hydrogen start-up grid, which will also include IPCEI projects, is to be ready as early as this summer. The Federal Network Agency (Bundesnetzagentur) will be responsible for the grid development together with the TSOs. There is already plenty of material for discussion between the two parties, as was made clear at the Handelsblatt Hydrogen Summit in Salzgitter. The initial grid calculated for 2020, which was then estimated at 1,200 kilometres, is no longer sufficient for the grid operators. "We only have to look at the map and our pipeline system, it is far too small," said Ulrich Benterbusch, managing director of the grid operator Gascade. He added that he could not imagine that the TSOs would come up with proposals that did not connect all the federal states.

On the other hand, Eva Haupt, head of department at the Federal Network Agency, said: "Since we can't yet be sure that we need a very large hydrogen grid, we should perhaps start smaller in order to limit the costs". Haupt expects an initial grid of converted gas pipelines to be built in the western part of Germany from 2027. Like Benterbusch, she believes it is likely that discussions will end up with "every state wanting something". But she defended the small-scale solution, which could be adapted later. The gas crisis has changed the direction of flow from east to west. This makes it difficult to predict which gas pipelines will be reallocated in the next decade. In addition, all the memorandums of understanding for hydrogen projects have yet to prove their worth, she said.

"Accepting a certain amount of fallout"

At the conference, representatives from science and industry called for one thing above all else - greater speed. "We are talking a lot in Germany, trying to find the absolute right thing and missing the moment," said Karen Pittel, head of the Ifo Centre for Energy, Climate and Resources. Instead, she called for more pragmatism when it comes to the ramp-up of the hydrogen market: "And then sometimes you have to accept a certain fallout." She sees it as positive that the private sector is now being given responsibility for the pipeline infrastructure, reasoning that private projects generally move faster.

Companies struggle with funding

The Ifeu director received support from Gunnar Gröbler, CEO of the steel company Salzgitter AG: "In Germany we try to regulate everything down to the last but and bolt," he complained, adding that this fragmentation was also a problem when it comes to subsidies. He would like to see a more "forward-thinking funding approach", comparable to the Inflation Reduction Act in the USA. "Here I have the feeling that we are trying to show companies that they don't need the subsidies," says the Salzgitter boss. He adds that there are actually sufficient funds available, as the subsidy pots throughout the EU are better equipped than in the US.

The steel group received finding for thr Salcos project and its green transformation in mid-April. For Gröbler, this took far too long, which is why Salzgitter AG had to make advance payments. "With the rising price of CO2, steel production here will soon no longer be economical, and we didn't want to lose this time," he explains. He expects his company to be connected to a hydrogen grid within this decade. But he said that the company cannot rely on Germany alone to meet the huge demand for hydrogen for green steel production. "We are looking for long-term supply relationships worldwide," says Gröbler. The aim, he says, is to work with different partners so as not to repeat the mistakes of the past.

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