(Bloomberg) -- Germany approved plans for the construction of a €19 billion hydrogen network, deepening its commitment to an energy source that has faced setbacks in recent months.
The German Federal Network Agency said it approved proposals from transmission system operators for a 9,040-kilometer hydrogen grid, which will be built out in the coming years and be fully operational by 2032. It’s set to form a core network that will connect industrial hubs — such as steel producers — seeking to decarbonize.
Europe’s largest economy wants to replace most of its fossil fuel needs with hydrogen to achieve climate neutrality by 2045. Lately, however, its push has faced setbacks with the cancellation of a key pipeline from Norway. Officials have said that the majority of Germany’s hydrogen needs will need to be covered by imports initially.
The original proposal for the core network was 600 kilometers longer than the plans that were ultimately approved, allowing the estimated cost to drop from €19.7 billion to €18.9 billion. Klaus Mueller, head of the Federal Network Agency, said parts of the initial plans would have been redundant.
60% of the network will be converted from existing gas pipelines, and the rest will be newly built. Mueller said about 660 kilometers of current gas links will be strengthened, an effort that will cost €2 billion. The first pipes are set to be operational next year.
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