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EnBW to invest 1 bln euros as Germany's hydrogen grid takes shape

EnBW will invest 1 billion euros ($ 1.09 billion) in Germany's prepared nationwide hydrogen transport network, the energy stated as a. across the country preparation application involving sector peers was. revealed on Tuesday.

The infrastructure, which is expected to begin industrial. operations by 2032, is implied to transfer freshly produced and. imported hydrogen, a clean alternative to fossil fuels in lots of. market and customer applications.

Aiming to decrease its dependence on oil and natural gas and. the carbon they produce, Germany is leading the way for the. importation and production of tidy hydrogen.

Hydrogen, provided it is produced in an electrolysis. process utilizing renewable electrical energy, can help the transition to. a lower carbon economy.

Since German land resources for wind and solar power are. limited, some 70% of its future hydrogen is anticipated to be

imported

from areas that can produce it amply and at low cost.

EnBW's planned spending is part of a nationwide approval. process simply opened by the energy regulator, it said in a press. release.

The hydrogen core network is the entry point into the. hydrogen economy of the future and therefore the prerequisite. for the complete decarbonisation of the German economy and the. achievement of environment goals, stated EnBW board member Dirk. Guesewell.

The regulator, called the Bundesnetzagentur, on Tuesday was. handed a total set of styles prepared by FNB, the market. group representing German gas transmission network operators, an. FNB declaration stated.

BUILDING WORK TO START NEXT YEAR

FNB said that it anticipated to receive approval from the. regulator in September which building and construction work could start in. 2025.

The

plans encompass 9,666 kilometres (km) of lines costing. approximately 19.7 billion euros.

The pipelines will be able to deliver 278 terawatt hours. ( TWh) of hydrogen a year to consumers, equivalent to one 3rd. of German gas use in 2021, prior to Moscow's intrusion of. Ukraine which triggered Germany to start curbing its use of. Russian energy.

The federal government plans to partially money the plans with. amortisation accounts that will spread out the expense over. generations. Operators will spend from their balance sheet and. recover their outlays primarily through network charges, with capital. markets likewise invited to invest.

Some 60% of the infrastructure tasks involve changing. natural gas pipelines to hydrogen operations.

Some new hydrogen pipelines will be developed and some lines. currently used for gas will be idled.

As part of a joint application by EnBW and its subsidiaries. VNG, an eastern German gas distributor, and Baden Wuerttemberg. operator terranets, financial investments are prepared to at first link. regional transport lines in Germany's east and southwest, and. later on beyond those locations.

Individually, Berlin grid operator Gasag said it has sent. strategies to transform 60 km of the city's gas pipelines to hydrogen,. to take it as feedstock to heat plants currently operating on gas.

(source: Reuters)