TSOs present hydrogen report: This is what we need to successfully develop the hydrogen infrastructure

Germany must accelerate the ramp-up of hydrogen in order to secure supplies and promote climate protection. The hydrogen report submitted today by the transmission system operators in accordance with Section 28q of the German Energy Act (EnWG) shows how the necessary transport infrastructure can be built efficiently, quickly and in a targeted manner by integrating hydrogen network planning into the tried-and-tested gas network planning.

With twelve recommendations, the transmission system operators are providing the Federal Network Agency and the legislature with proposals that should be implemented this year. The core of the hydrogen report is a concept for a binding and integrated network development planning process for gas (hydrogen and methane).

“Hydrogen may be the smallest element in the periodic table, but its importance for the competitiveness of the German economy is all the greater. The hydrogen ramp-up is more urgent than ever in view of the climate crisis, high energy prices and the current geopolitical situation,” explains FNB Gas CEO Dr. Thomas Gößmann.

Anchor integrated network planning in law

Inga Posch, Managing Director of FNB Gas: “With their hydrogen network modeling as part of the Gas Network Development Plan, the transmission system operators have already made advance progress in recent years. To ensure that our conversion and expansion proposals can also be confirmed by the Federal Network Agency and then implemented, we now urgently need integrated network planning gas (hydrogen and methane) to be enshrined in law.”

In their report, the transmission system operators also recommend the creation of a regulatory framework that provides for uniform and mandatory regulation for all operators of a public supply hydrogen network. This must also enable the refinancing of the investments made by the network operators and lead to network charges that are affordable for hydrogen customers.

A fast hydrogen ramp-up also requires close coordination of measures at the different network levels. The hydrogen report therefore also contains a chapter on the planning of conversion measures in the distribution network and the interfaces to the transmission network level, which was prepared in cooperation with BDEW, DVGW, VKU and the H2vorOrt initiative.

Creating new scope for action

In the last two years alone, the transport demand for hydrogen, which the transmission system operators query as part of network development planning, has increased tenfold. “Industry, public utilities and consumers now expect predictability. As the fourth-largest economy in the world, Germany cannot wait any longer. Any delay makes the switch more expensive and jeopardizes future security of supply,” says Gößmann. “The transmission system operators are waiting in the wings to give Germany new room for maneuver with hydrogen. As soon as the necessary regulatory framework is in place, we can get started.”

Statements of the contributing associations on the publication of the Hydrogen Report:

Kerstin Andreae, Chairwoman of the BDEW Executive Board:

“In order to become independent of fossil energy sources and thus also gas imports from Russia, we need the rapid ramp-up of a hydrogen economy. This can only succeed if the appropriate pipeline and storage infrastructure is created quickly. To some extent, existing gas infrastructure can be converted for this purpose and thus continue to be used at low cost to the customer. In addition, the hydrogen grid infrastructure can relieve the electricity system and contribute to greater resilience of the supply system as a whole. In addition to large-scale hydrogen projects, there are numerous other exciting and promising projects, particularly at the gas distribution network level. These include ready-to-practice use cases in industry, mobility and heat supply. The decarbonization of gas supply, the ramp-up of hydrogen and municipal heat planning must go hand in hand for this and be considered in an integrated manner.”

Prof. Dr. Gerald Linke, Chairman of the Board DVGW:

“A climate-neutral energy transition will succeed with a functioning hydrogen infrastructure. The conditions for this are excellent, because large parts of the existing gas supply from transport and distribution networks and end devices are already hydrogen-compatible or can be made H2ready. This reduces the expenditure for necessary further expansion. With its hydrogen regulations and technical expertise, the DVGW is making an indispensable contribution to making expansion plans a reality quickly and with assured quality. But at the same time, decisive political action is required so that all parties involved can plan and invest within a reliable regulatory framework. In the coalition agreement of the traffic light government, hydrogen was assigned a leading role. Announcements must now become binding commitments.”

Florian Feller, Chairman H2vorOrt:

“The months of intensive collaboration between transmission system operators, distribution system operators and associations have paid off. The hydrogen report paints a clear and consistent picture across the industry of the planning for the transformation of gas grids toward climate-neutral hydrogen supply. The H2vorOrt partners were able to contribute an important building block to this planning process with the Gas Grid Area Transformation Plan (GTP) process launched in March. Now it’s time to set the regulatory course to move the transformation forward in a concrete way.”

Ingbert Liebing, VKU Chief Executive Officer:

“Except in industrial networks, hydrogen does not yet play a major role. That urgently needs to change. The report shows us how this can be done. To achieve the transformation process, we are dependent on all infrastructure players. The gas distribution networks can also provide hydrogen. They are ideally suited for the future transport and distribution of hydrogen and offer a flexible, cost-effective and fast path toward a climate-neutral energy supply. In addition, we would do well to consider and plan the various systems and energy carriers (electricity, gas, hydrogen) in an overarching manner – with mandatory municipal heat planning.”