Germany's Federal Network Agency has approved a groundbreaking hydrogen pipeline network spanning over 9,040 kilometers.

The ambitious project is expected to transform the country's energy landscape and position it as a leader in hydrogen technology.

According to the project details, approximately 60% of the pipelines will be repurposed from existing natural gas infrastructure, while the remaining portion will be completed with newly constructed pipelines by 2032. 

The project, which will receive €18.9 billion ($20.3 billion) from a consortium of 15 transmission system operators (TSOs), is expected to have a feed-in capacity of 101 gigawatts (GW), and a feed-out capacity of 87 GW by 2032, making it the largest hydrogen pipeline system in Europe.

Green hydrogen developer HH2E has expressed enthusiasm for the initiative, noting that many of its planned production sites are strategically located near the core network.

Federal Minister for Economic Affairs and Climate Protection Robert Habeck emphasized the significance of this project, stating that it is a crucial step towards Germany's decarbonization goals and industrial competitiveness. 

The approved core network provides essential planning security for hydrogen producers, power plant operators, storage systems, and future industrial users, marking a significant milestone in Germany's transition to a hydrogen-based economy.

The hydrogen core network will be constructed in phases, with the first hydrogen conversion lines expected to become operational in 2025, with the Federal Network Agency ensuring that only natural gas pipelines that are no longer needed for natural gas transport will be converted to hydrogen.

The management and operation of the core network will be entrusted to the private sector, and financing will be through user fees. 

To address the challenge of relatively few initial customers, network charges will be capped, with a financial safeguard already in place, backed by the federal government to mitigate potential risks.

In 2026, the Federal Network Agency is set to approve the first integrated network development plan.