On 14 November 2023, a draft plan for Europe’s first hydrogen core network was presented, with an established goal to achieve a fully operational, nation-wide, expandable and efficient hydrogen network by 2032. Deemed to be the world’s largest national pipeline network for hydrogen, the huge project aims to help Germany meet its 2045 net zero goal by using hydrogen instead of natural gas to power industries such as chemicals and steel production that cannot be electrified.
The project has been largely well received by stakeholders, with the transformation from natural gas to green gases deemed an “opportunity of the century”. However, the outlook for hydrogen demand remains an open question.
Lorenz Kramer, Dods German Political Consultant for Energy, Industry and Trade, and author of the report, says “There is uncertainty over the outlook for Germany’s hydrogen demand and procurement ambitions, with reports suggesting the country may have significantly overestimated its future needs. There is also a question mark hanging over whether overseas producers will be able to supply all the hydrogen Germany hopes to import, with reports suggesting just one percent have received European financing so far.”