German Regulator Sets Hydrogen Pipeline Tariff, Aims for Investment & Affordability

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German Regulator Sets Hydrogen Pipeline Tariff, Aims for Investment & Affordability

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Green hydrogen pipeline (© Shutterstock/Audio und werbung)
Green hydrogen pipeline (© Shutterstock/Audio und werbung)

Germany's pipeline regulator has finalised a uniform tariff for the nation's burgeoning hydrogen pipeline "core network" to spur investment while keeping costs manageable for early adopters. 

The Federal Network Agency (BNetzA) confirmed a fee of €25 ($29.23) per kilowatt-hour of energy per hour, a rate operators can charge customers for using the infrastructure.

The BNetzA calculated the tariff, expressed as “€25/kWh/h/a” to signify a user's right to transport a set amount of hydrogen hourly throughout a year, to be high enough to recoup significant investment costs, yet affordable for initial users. 

Expected to be completed by 2032, the ambitious 9,000-kilometre (approximately 5,600-mile) core network carries an estimated combined investment of €18.9 billion (roughly $21.9 billion). 

The German government has already established a €24 billion (27.8 billion) "amortisation account" to help pipeline operators undertake the massive project and repay this fund as their revenues grow, aiming to settle the balance by 2055. 

Should a shortfall occur, operators will be responsible for 24% of the deficit, with the German government covering the remainder.

While the BNetzA intends for the fee to remain constant until 2055, it will conduct triennial reviews to ensure the tariff remains sufficient for operators to rebalance the amortisation account.

"We are creating planning security for all market participants and enabling access to the hydrogen core network at a reasonable price," Klaus Müller, president of BNetzA stated on Monday, July 14.

Initial sections of this critical hydrogen pipeline are already nearing completion and are being filled with hydrogen this year. 

Such projects include the Nowega's 55-kilometre (34-mile) pipeline for the GET H2 network and Ontas' 25-kilometre (15.5-mile) link connecting the Bad Lauchstädt Energy Park with TotalEnergies' Leuna refinery.