Hydrogen ramp-up in Germany: Current status and priorities of the new BMWE

© Swen Gottschall / Die Gas- und Wasserstoffwirtschaft

With the expansion of the hydrogen core network, Germany is currently laying the foundations for an efficient supply of hydrogen in the country. At the same time, regional model initiatives are taking place in many places to establish practical hydrogen solutions and thus successfully build bridges to commercial use. The new federal government is supporting this development with innovative incentives and an open climate for innovation. Where does Germany currently stand in terms of the hydrogen ramp-up – and above all: what does the future hold?

1. The core grid: The backbone of the hydrogen economy

The German hydrogen core network reached a decisive milestone in 2024: the Bundesnetzagentur granted official approval for the nationwide infrastructure project on 22 October 2024. With a total of 9,040 kilometres of pipeline, this core network will form the backbone of the German hydrogen economy. The costs for the realisation of the hydrogen core network are estimated at around 18.9 billion euros. These low costs compared to other infrastructure projects in the energy industry result from the utilisation of existing pipelines. For example, 60 % of the 9,040 kilometres of pipeline are to be covered by converting natural gas pipelines already in operation. Converting the pipelines to hydrogen operation is not only significantly cheaper than building new ones, the time required is also considerably shorter. The process of converting a pipeline takes one to three years, while the construction of a new hydrogen pipeline takes five to eight years.

The Deutsche Verein des Gas- und Wasserfaches (DVGW) currently considers the conversion of the gas infrastructure to hydrogen to be largely unproblematic, as around 97 % of existing pipelines are already H2-compatible. The changeover primarily requires testing of the pipelines and the adaptation of compressor units, measuring devices and systems for explosion protection.

Hydrogen core network until 2032.
© FBN Gas

A total of 525 kilometres of the core network are to be put into operation this year. Some sections have already been realised or are currently under construction, such as the route

Lubmin - Bobbau

The conversion of the 400 km long natural gas pipeline to hydrogen is taking place in stages, with the northern section being filled with hydrogen for the first time at the end of February 2025. It is a central section of the hydrogen core network and stretches from Lubmin on the Baltic Sea to Bobbau near Bitterfeld-Wolfen in Saxony-Anhalt. This route utilises the existing OPAL pipeline, which was originally designed for natural gas transport. The pipeline is intended to connect important industrial centres and ports with each other and thus enable efficient hydrogen transport.

Lingen - Legden

In western Germany, a 50-kilometre stretch between Lingen (Lower Saxony) and Legden (North Rhine-Westphalia) is being converted for hydrogen transport using the existing natural gas pipeline no. 13/5, which runs from Emsbüren via Legden to Dorsten.

Heek - Epe

Another section of the hydrogen core network runs between Heek and Epe in North Rhine-Westphalia. This approximately 11 km long route has been under construction since the beginning of April and is due to go into operation this year. It will connect the planned cavern storage field in Epe with an existing pipeline from Emsland to the northern Ruhr region, which is being converted to transport hydrogen.

Bad Lauchstädt - Leuna-Süd

Since the beginning of April, a 25 km long pipeline in Saxony-Anhalt has been operational following the conversion of the existing natural gas pipeline to hydrogen. According to operator Ontras, the pipeline (part of the approximately 600 km long H2 starter network, a precursor to the nationwide hydrogen core network) will transport up to 2,700 tonnes of green hydrogen in future and connects the Energiepark Bad Lauchstädt (Saale district) with the Total Energies refinery in the Chemiepark Leuna.

The transport pipeline in the Energiepark Bad Lauchstädt is put into operation: from left to right: Gunar Schmidt (Ontras), Prof. Dr Armin Willingmann (Saxony-Anhalt), Thomas Kralinski (Saxony), Cornelia Müller-Pagel (EBL).
© Tom Schulze

2. Hydrogen model projects

In addition to the work on the hydrogen core network, there are now numerous model regions throughout Germany for the regional hydrogen ramp-up. One of these projects is briefly presented here as an example:

On 1 April, the pioneering joint project HydroNet was launched in the Sauerland region, which is being funded by the Bundeswirtschaftsministerium with around 18 million euros. It aims to transform the region into a sustainable hydrogen economy and is intended to serve as a blueprint for similar projects in other regions of Germany.

In order to make local production more climate-friendly, a consortium led by the distribution network operator Westnetz wants to establish a hydrogen cluster there by 2029 with HydroNet, which will cover the entire value chain. A total of twelve partners want to establish a hydrogen market in Sauerland in this way over the next five years.

The backbone of the model cluster is an 11 km long natural gas pipeline that is being converted for hydrogen transport. The customers for the hydrogen are medium-sized industrial companies in the region. The focus is on metal production and processing, automotive supply, paper production, mobility and wastewater treatment.

According to Westenergie, HydroNet is ‘the only project of its size in Germany that is being realised without EU funding –and specifically involves medium-sized industrial companies’.

3. BMWE: Drive forward the H2 ramp-up, lift technology bans

The new Minister of Economic Affairs, Katherina Reiche, sees the hydrogen ramp-up as a central pillar for the energy transition, the decarbonisation of industry and Germany's competitiveness. She emphasises that the ramp-up must be driven forward much faster, more pragmatically and more boldly in order to achieve the ambitious climate targets and secure the industrial location. Reiche is calling for better framework conditions, accelerated implementation of infrastructure projects and an import strategy for hydrogen, as Germany will be dependent on imports in the medium to long term. Overall, she wants to „create colour neutrality in the hydrogen ramp-up“ and abolish technology bans in order to keep various solutions open. Reiche wants to place a particular focus on the expansion of gas-fired power plants as a flexible reserve to secure fluctuating green electricity generation. This involves the rapid tendering of new 20 GW gas-fired power plants in order to be able to guarantee security of supply in the future.

4. Conclusions and outlook

The current data on the infrastructure projects mentioned above makes it clear that the hydrogen ramp-up is making great strides in Germany – be it with the conversion of existing gas pipelines, the construction of new pipelines or the commissioning of pipelines on strategically important sections that have already taken place.

However, this positive trend could be slowed down: EU regulation, for example, is currently proving to be one of the biggest obstacles to cost-efficient hydrogen production in Germany. Due to the strict RED III criteria regarding the power supply for electrolysers, experts expect a drastic increase in costs for domestic hydrogen production. This would increase the price per kilogramme of hydrogen by around 50 %. There also appears to be resistance from Brussels to the planned expansion of gas-fired power plants. The excessively long authorisation procedures continue to hinder rapid expansion. There is therefore still a lot to be done at regulatory level – both at national and European level.