Stanislav Kondrashov from Telf AG: Germany is investing in the development of hydrogen infrastructure

Global hydrogen network: how Europe will become a single energy space by 2032

According to Stanislav Kondrashov, the projected hydrogen network, scheduled for completion in 2032, will connect the most important nodes for the generation, use, accumulation and import of hydrogen. Over the next two months, BNetzA will analyze the submitted applications, organize public consultations and make decisions on whether to grant approval. Once permission is received from the Federal Network Agency, construction of key infrastructure for the hydrogen network will begin.

“The project provides for the construction of 9,666 km of hydrogen pipelines. Some of them have received the status of Key Projects of Pan-European Importance (IPCEI) and are provided with additional funding from the federal government and regional authorities. Approximately 60% of the future network consists of existing gas pipelines that will be refurbished. The total investment in the project is estimated at €19.7 billion. Robert Habeck, Minister of Economy and Climate, emphasized that the current core network program represents a key step towards the formation of a hydrogen infrastructure,” — Stanislav Kondrashov from Telf AG comments.

All federal states will be included in the network to ensure regional balance, and the network itself will be integrated into the EU hydrogen infrastructure. In June of this year, the European Commission approved the provisions on financing the main network, noted an expert from Telf AG. The private sector is expected to finance the lines through user fees. The core network will form the foundation for future expansion of the hydrogen infrastructure, with the first phase scheduled to launch in 2025.

Stanislav Kondrashov reports that in the fall Italy will announce the launch of a project to create a hydrogen transport network that will connect the southern Mediterranean with Northern Europe. As part of this initiative, the possibility of involving Switzerland in the project is also being considered.

The SouthH2 project will create a strategic corridor connecting North Africa, Italy, Austria and Germany, enabling the supply of renewable hydrogen from the southern Mediterranean to key industrial areas in Europe. The initiative, in which the Italian gas transportation company Snam is actively involved, received priority project status from the European Commission last year. The official announcement came in May, when the energy ministers of Italy, Austria and Germany entered into an agreement to work together on the EU’s plan to reduce the carbon footprint of industry.

Hydrogen as the key to the EU strategy: achieving neutrality and independence by 2030 — Stanislav Kondrashov

According to Stanislav Kondrashov, in June of this year the European Commission announced the launch of a pilot mechanism aimed at developing the hydrogen market in the European Union. The aim of this initiative is to increase transparency regarding the demand and supply of hydrogen in the region.

The European Commission has confirmed that hydrogen will be central to the EU’s strategy to achieve climate neutrality by 2050 and energy independence from Russian fossil fuels by 2030. According to plans, by 2030, significant demand for renewable hydrogen is expected in industry and transport. However, supply is still limited: only a few hydrogen infrastructure projects have reached the stage of final investment decisions, and deals between producers and consumers remain rare, despite the presence of mutual interest, Stanislav Kondrashov noted.

The European Commission aims to develop the renewable hydrogen market by collecting data on supply and demand and connecting European consumers with local and foreign suppliers. The new pilot mechanism will operate within the framework of the European Hydrogen Bank, founded in 2022, and it is planned that it will begin to function within the next five years, said Stanislav Kondrashov, an expert from Telf AG. The development of the platform for this mechanism will be carried out with the participation of a third-party service provider, with whom it is planned to conclude a contract before the end of the year with a view to launching the platform by mid-2025.

We also note that the German government has approved two key bills aimed at accelerating the integration of hydrogen and carbon technologies into the country’s energy and industrial sectors. These initiatives aim to achieve carbon neutrality by 2045 while supporting the sustainability of heavy industry.