Governance challenges in the ramp-up of hydrogen infrastructure in Germany

The establishment of a comprehensive and public hydrogen infrastructure becomes a crucial element in Germany’s attempt to become carbon-neutral by 2045. However, currently the country's hydrogen network spans a mere 420 kilometers (E.On 2023), primarily characterized by disparate "hydrogen islands" within vertically integrated regional clusters, utilizing non-regulated distribution networks or non-pipeline transport routes (dena 2023). With the 2023 update of the National Hydrogen Strategy of 2020 (NHS 2023), Germany plans the development of a hydrogen start-up grid with more than 1,800 km of converted and newly built hydrogen pipelines with IPCEI funding; around 4,500 km are to be added across Europe (European Hydrogen Backbone) (NHS2023). A further expansion to approx. 9,700 km is planned in Germany until 2032 (FNB Gas 2023), creating a hydrogen core network/grid. The Federal Network Agency oversees the development of the hydrogen infrastructure and works directly with the 16 transmission system operators in Germany. Additionally, 703 gas distribution system operators are actively engaged in Germany. Distribution system operators play a key role as they connect the national/European transmission network with local demand. The current regulatory structure, characterized by a sectoral separation between electricity and gas on the one hand and transmission and distribution grids on the other, raises concerns about the future regulation of hydrogen and underlines the need for a more systemic approach to exploit the synergy potential of sector coupling (dena 2023; Kemmerzell et al. 2024). This raises the question, to which extent the specification of the H2 network planning, initiated with the NHS 2023, will take into account the individual plans and needs of the stakeholders, in particular economic actors (Kemmerzell et al. 2024). Our study explores the incorporation of hydrogen network planning into the processes of economic actors. It scrutinizes the current positions of hydrogen users, especially distribution system operators and their customers, addressing procedural involvement, economic stakeholder positions, and the alignment of expectations with political planning. The research involves surveying all German distribution system operators to capture their views, positions, and approaches to involving potential hydrogen end-users in network planning. The survey is complemented by a document analysis, particularly focusing on responses to the Federal Network Agency’s pre-consultation and consultation on the draft application for the hydrogen core network. The research aims to provide comprehensive insights into collaborative dynamics between stakeholders and policymakers, shedding light on the convergence or divergence between expectations and political planning within the evolving landscape of hydrogen infrastructure development. References: Bundesministerium für Wirtschaft und Klimaschutz (BMWK) (2023): National Hydrogen Strategy Update NHS 2023, Berlin. https://www.bmwk.de/Redaktion/EN/Publikationen/Energie/national-hydrogen-strategy-update.pdf?__blob=publicationFile&v=2 (accessed 14.01.2024) Deutsche Energie-Agentur (dena) (ed.) (2023): Lokale Energieinfrastrukturen – Rückgrat der Energiewende vor Ort, Impulse für einen integrierten Planungsprozess auf lokaler Ebene. https://www.dena.de/fileadmin/dena/Publikationen/PDFs/2023/IMPULSPAPIER_Lokale_Energieinfrastrukturen-Rueckgrat_der_Energiewende_vor_Ort.pdf (accessed 14.01.2024). E.On (2023): H2Bilanz: Das H2-Netz ist das Rückgrat der Energiewende. https://www.eon.com/de/wasserstoff/h2-bilanz/infrastruktur.html (accessed 14.01.2024). Kemmerzell, Jörg; Kalis, Michael; Hartmann, Jens; Knodt, Michèle (2024): Systementwicklung – Wasserstoff, Infrastrukturplanung und der geltende Rechtsrahmen. Kopernikus-Projekt Ariadne, Potsdam. Fernleitungsnetzbetreiber Gas (FNB Gas) (2023): Entwurf des gemeinsamen Antrags für das Wasserstoff-Kernnetz. https://fnb-gas.de/wp-content/uploads/2023/11/2023_11_15_Entwurf_Antrag_Wasserstoff-Kernnetz_final.pdf (accessed 14.01.2024).