Hydrogen Core Grid: First Funding Disbursed

Germany’s hydrogen infrastructure is gaining momentum: with the first funding payment made by the Federal Ministry for Economic Affairs and Climate Action (BMWK), a key milestone has been reached in financing the national hydrogen core grid. At the same time, Trading Hub Europe (THE) has been commissioned by the ministry to develop and operate a central hydrogen deficit compensation system.

The first payment was granted to Ontras Gastransport GmbH, marking the official start of the funding process for the hydrogen core grid. The planned network is set to span around 9,040 kilometers by 2032, largely based on repurposed natural gas pipelines. Its aim is to ensure a nationwide hydrogen supply for industry, mobility, and energy systems.

In parallel, THE has been tasked with building a system to balance short-term hydrogen supply deficits. This new system will ensure that hydrogen network operators can continue to supply their customers even in the event of temporary shortages. In this role, THE will procure hydrogen from the market and inject it into the system when needed—contributing to both supply security and grid stability. The legal foundation for this was established with the amendment of the German Energy Industry Act (EnWG).

"The responsibility for setting up the deficit compensation system is an important step toward the ramp-up of the hydrogen market and a resilient energy infrastructure," said Torsten Frank, Managing Director of THE. The goal is to create a robust yet efficient mechanism that enables a fair balance between hydrogen producers, network operators, and end users.