Hydrogen Backbone
Hydrogen Backbone
Hydrogen Backbone
Hydrogen Backbone
IMPLEMENTATION ROADMAP —
CROSS BORDER PROJECTS AND COSTS UPDATE
NOVEMBER 2023
Executive summary 4
6. Appendix 29
6.1 Appendix A: selected projects to create EHB by early 2030s 29
6.1.1 Corridor A — North Africa and Southern Europe 29
6.1.2 Corridor B — Southwest Europe and North Africa 32
6.1.3 Corridor C — North Sea 34
6.1.4 Corridor D — Nordic and Baltic regions 36
6.1.5 Corridor E — East and Southeast Europe 37
6.1.6 Transmission Network in Germany 39
Imprint
Supported by:
Guidehouse Date:
November 2023
summary hydrogen production in regions where costs are low, and enabling imports from
third-party countries. Cross-border infrastructure has been and remains a crucial
component of the energy value chain—connecting supply with demand and
storage and sending important signals to mitigate perceived financial risk for
market participants, project developers, and downstream end users. To fulfill
Europe’s hydrogen objectives, hydrogen infrastructure will be paramount.
This report highlights a set of 40 concrete projects managed by the EHB’s TSO
members, representing 31.500 kilometres of hydrogen pipelines with expected
commissioning prior to 2030. TSOs are actively seeking sufficient contractual
commitments from future network users to underpin their investment decisions
in hydrogen networks. With the EHB moving from a vision towards reality, the
first financial investment decision (FID) in a project which is part of the backbone
has already been taken. Furthermore, together, the TSOs are using their existing
expertise with gas networks and working to ensure that the EHB is not just a
vision but a tangible reality that will support and accelerate the European energy
transition.
The world has undergone substantial changes since the initial publication of
EHB cost estimates in 2020. Globally impactful factors like COVID, the Russian
invasion of Ukraine, rising inflation, and policy responses to climate change have
all influenced implementation costs. This report presents an updated, bottom-up
accounting of unitary costs for capital expenditures (CAPEX) and developmental
expenditures (DEVEX) of pipelines and compressors, based on new primary data
collected from the TSOs’ real-world projects.
Costs are nominally higher as compared with the 2020 update but are shown to
be largely in line with economy-wide inflation (of course, the broader impacts of
inflation are felt across nearly all sectors, including other energy vectors). The
cost data in this report reflects Europe-wide average numbers. However, it is
1 EHB (2022). Five hydrogen supply
corridors for Europe in 2030. Source: important to consider that energy infrastructure costs tend to be highly project-
EHB-Supply-corridors-presentation- specific, with geographic, demographic, and other factors playing an important
ExecSum.pdf
role in project economics.
Conceptually and once operational, the EHB network is likely to encounter two
distinct financial phases that are linked to the development of the European
hydrogen economy. The first of these phases represents the market ramp-up,
involving limited hydrogen demand and low booking of capacity on the hydrogen
network. However, as the hydrogen economy develops and demand rises, the
market will transition to the later, mature market phase.
Defined here, the investment recovery challenge (IRC) arises from the potential
financial disparity between the regulated revenue cap and the revenue that can
be earned from network users on account of real network capacity bookings
during the initial market ramp-up phase. A simplified way to interpret the origin
and timing of this challenge is presented conceptually in Figure 1. Please note
that some pipelines will be financially feasible from the start of operation and
not only during the mature market phase, in particular in case of high share of
repurposing. Therefore, this graph is not a reflection of the real dynamics of
the entire EHB network but rather a simplification of a single pipeline, used to
illustrate the structure of the IRC framing.
Underpinning this potential challenge is the possibility that demand might take time
to develop, as market design enablers will take some time to be fully developed
and implemented. (These include, for example, RED III obligations, European
Union [EU] and national policy enablers, and subsidies for renewable and low
carbon hydrogen production to enable hydrogen to become increasingly cost
competitive with fossil fuels.) The impact of demand development over time can
be observed via the teal line in Figure 1. The hydrogen demand, and equally the
use of the booked capacity, increases until a steady booked capacity is observed
in the mature market phase. This increase in booked capacity allows TSOs to
lower tariffs until the market transition to the mature phase.
The extent of the potential financial challenge of course depends on the amount
Figure 1
of public financial support for infrastructure, the share of existing infrastructure
The IRC and level of tariff required that can be repurposed, as well as the location of supply and demand centers
to realise regulated return. (which are very much country specific).
EHB member TSOs are moving ahead with real, tangible progress on building
out a Europe-wide hydrogen network. Investment in the EHB is a necessary step
forward for achieving lowest-cost societal decarbonisation in Europe. Hydrogen
makes use of plentiful European and neighboring resources, serves a multitude
of sectors—including those typically viewed as hard to decarbonize—and
provides connectivity and resilience across the continent. Furthermore, building
out infrastructure enables the creation of a liquid, pan-European, hydrogen
market. Simply put, the hydrogen infrastructure network is of critical importance
for achieving energy transition goals.
Here, we the research team have provided important cost updates to help inform
policymakers on the competitive advantages offered by the EHB and maintain the
progress that is already underway. Additionally, we have laid out a conceptual
framework for the potential financial challenges that could become most prominent
for network development. Future EHB efforts will quantify the potential amount
of required EU-wide support, present recommended solutions to mitigate the
defined financial challenges, and provide additional suggestions for addressing
other aspects of the hydrogen value chain. Regardless of the specific path
forward, we expect that the road ahead is likely to require collaboration amongst
energy network operators, end-user industries, governments, and regulators.
The EHB—and the energy transition as a whole—requires proactive planning,
collective action, and a dedication to the overarching goal.
Before the European Commission released the REPowerEU plan, the EHB
initiative conducted a bottom-up assessment of demand by sector and country.
In this analysis, the EHB identified 14.7 MT of demand5, representing tangible
and achievable projections based on national targets, market developments, and
announced projects (prior to the release of REPowerEU).
The sizeable hydrogen demand in 2030 laid out in both the REPowerEU plan and
the EHB’s bottom-up analysis underscores the key role hydrogen is envisioned
to play in the future European energy system, both as an energy carrier and
as an energy feedstock in industrial and other processes. Hydrogen is likely
to be a crucial component of the energy transition across end-use sectors, as
3 European Commission (2022). an important tool for hard-to decarbonise sectors such as heavy industry (e.g.,
Commission launches consultations on iron and steel manufacturing), freight and transportation sectors that historically
the regulatory framework for renewable
depended upon fossil fuels, and as a means of storing renewable energy for use
hydrogen. Source: https://commission.
europa.eu/news/commission-launches- on a dispatchable basis.
consultations-regulatory-framework-
renewable-hydrogen-2022-05-23_en
4 European Commission (2022).
REPowerEU: Joint European Action for
more affordable, secure, and sustainable
energy. Source: https://ec.europa.eu/
commission/presscorner/detail/en/
ip_22_1511.
5 EHB (2022). Five hydrogen supply
corridors for Europe in 2030. Source:
https://ehb.eu/files/downloads/
EHBSupply-corridor-presentation-Full-
version.pdf
The EHB initiative is a group of TSOs spanning the European continent and
collaborating to lead hydrogen infrastructure development. The original group of
11 EHB partners published their first paper in July 2020, outlining a vision for
dedicated hydrogen pipeline infrastructure—to a large extent based on
repurposed existing natural gas pipelines—including maps showing hydrogen
infrastructure covering their home regions. Since then, the EHB initiative has
grown to 33 European network operators with infrastructure covering 24 EU
member states plus Norway, the United Kingdom, Switzerland, and Ukraine
(Figure 2).
Figure 2
Since the EHB’s initial report in 2020, subsequent publications served to enhance
the vision as more partners entered the initiative, adding detail to recommended
actions and building additional momentum for the deployment of large-scale
hydrogen infrastructure. In view of national and European climate ambitions, first-
mover market actors have called for accelerated hydrogen infrastructure planning
and development to support lower-cost implementation of their energy transition
strategies. In addition to contributing to REPowerEU climate targets, the ability to
strengthen European resilience and energy security in response to global energy
market disruptions, while preserving the overall EU competitiveness, underscores
the urgency of large-scale hydrogen infrastructure planning.
The EHB has long advocated for European hydrogen corridors and their role
in contributing to an affordable and secure energy supply in Europe. The
corridor concept provides an economical means to bridge the substantial
variation of hydrogen producers and end users throughout regions of Europe,
owing to demographic, geographical, economic, and climatic factors.7 Some
European regions—the Nordics, Baltics, North Sea, and southern Europe—
are characterised by a net oversupply of low-cost hydrogen resources. These
6 Note that this comparison is made
against transmitting renewable energy regions benefit from vast renewable energy potential, high-capacity factors, and
as electric current to the place of local substantial land availability. Other regions—such as central Europe—will require
hydrogen demand and then converting
into hydrogen (locally). EHB (2021).
hydrogen imports from neighbouring European or other countries to meet their
Analysing future demand, supply, and hydrogen demand.
transport of hydrogen.p.81. Source:
https://ehb.eu/files/downloads/EHB-
Analysing-the-future-demand-supply-and-
Offering an economical connection between regions of hydrogen supply and
transport-of-hydrogen-June-2021-v3.pdf the hydrogen consumers in central Europe via cross-border pipeline corridors
7 EHB (2022). Five hydrogen supply will become increasingly important as adoption of hydrogen increases in the
corridors for Europe in 2030. Source:
https://ehb.eu/files/downloads/EHB- transport, industry, and power sectors. Such a scenario could lead to demand
Supply-corridor-presentation-Full-version. outpacing supply in regions with lower renewable energy potential. Importantly,
pdf
8 Projects of Common Interest (PCIs)
this mirrors the EU sentiment, aligning with goals of the Projects of Common
are intended to help the EU achieve its Interest (PCIs).8
energy policy and climate objectives:
affordable, secure, and sustainable
energy for all citizens and long-term
decarbonization. Source: https://energy.
ec.europa.eu/topics/infrastructure/
projects-common-interest/key-cross-
border-infrastructure-projects_en
Figure 4
A representative timeline
for transmission project
implementation.
The most important milestone of any project is the Final Investment Decision
(FID). The building blocks of the timeline prior to FID are intended to address the
technical and financial complexities of a project. In addition to technical studies
and permitting, market and financial analyses are important. The main objective is
to ensure that the project will generate a sufficient return to cover the investment.
The costs incurred before FID are referred to as DEVEX and are assumed to be
12 Note, on a national level, continual
a couple percentage of the total CAPEX of a project. The EHB’s members are
discussions are being held on the currently working proactively with policymakers and industry to ensure FIDs can
development of national grids. These be taken at a speed in line with Europe’s decarbonisation ambitions.
discussions could lead to a deviation
from the current EHB vision.
Projects initiated by the EHB members have been planned in close cooperation
with industry stakeholders and regulators and are anticipated to receive strong
support at the national and international level. Most of these projects are already
in the early phase of development and are expected to be operational between
2029 and 2031 (see Figure 5).
The projects currently in the front-end engineering design (FEED) phase are
expected to be operational within a couple of years. If FID is taken, these projects
will establish the first 4.000 km of the European hydrogen transmission network.
In total, 40 projects are expected to be commissioned in by the start of the next
decade.
Figure 5
Anticipated kilometers of
commissioned hydrogen
pipelines, per year.
A selection of EHB-affiliated
hydrogen transmission projects
(see Appendix A for details).
The next sections provide in-depth information about projects planned for
commissioning by EHB partners in the coming years.13 The projects are arranged
and color-coded by corridor. The transmission network in Germany is included
separately because that would otherwise have been discussed in multiple
corridors. For more detail about the projects included in the sections below see
the Appendix A: Selected Projects to Create EHB by Early 2030s.
Figure 7
Corridor A development
(selected projects).
Figure 8
Corridor B development
(selected projects).
The Southwest Europe & North Africa Corridor aims to transport hydrogen to
demand centres in Germany and beyond, through the H2ercules project. Within
Corridor B, H2Med is the overarching project connecting hydrogen networks
in Portugal, Spain, France, and Germany. It consists of the CelZa project in
Portugal that connects hydrogen producers such as the Green H2 Valley to
the Spanish Hydrogen Backbone. The Spanish Hydrogen Backbone collects
multiple supply sources from around Spain and allows connection to North
African project developments, making it one of the most promising hydrogen
production locations in Europe. To transport planned supply volumes to the main
demand centres of Europe, the connection into France is essential. The BarMar
project circumvents geographic challenges of the Pyrenees by traversing the
Mediterranean Sea as an offshore pipeline from Barcelona to Marseille. From
Marseille onwards, the hydrogen network branches into two directions, through
France with HySoW towards the Atlantic coast and as connection to Western
European countries via HyFen.
Figure 9
Corridor C development
(selected projects).
The North Sea Corridor aims to expedite the delivery of hydrogen to demand
centres in the western part of Germany. A primary energy feedstock for hydrogen
in this corridor is provided by the vast offshore wind potential in the region. With
this aim, H2T envisions to develop a pipeline from Norway in close collaboration
with the German and Norwegian government. Nearby, the Danish-German
Hydrogen Network intends to transport hydrogen via a 561 km onshore pipeline
through Denmark into the north of Germany. Additional offshore wind energy
from the North Sea is brought to the German coastline with hydrogen initiatives
such as HyOne and AquaDuctus in which hydrogen will be produced offshore
and will be transported via pipelines to the mainland. Entities in Corridor C also
envision supplying hydrogen in this corridor by importing hydrogen derivatives
via ports such as Rotterdam and Antwerp. Additionally, to transport hydrogen
across the mainland and into Europe, projects such as the Belgium Hydrogen
Backbone and the Hydrogen Network Netherlands are progressing rapidly—the
Belgium Hydrogen Backbone is in the FEED phase, while the Hydrogen Network
Netherlands has already taken FID. The construction of the Hydrogen Network
Netherlands has started on 27th of October.
Figure 10
Corridor D development
(selected projects).
The Nordic and Baltic regions have significant renewable energy resources based
on low-cost renewable energy. The availability of land and water for hydrogen
production makes the region lucrative for hydrogen projects and new P2X (Power-
to-X, the process of turning hydrogen into something else) industries. Therefore,
three major projects are planned to connect with demand regions. The Nordic
Hydrogen Route-Bothnian Bay connects the northern parts of Finland and Sweden
with their abundant renewable energy resources (onshore and offshore wind) to
demand centers in these regions. It is also connected to the onshore Nordic-Baltic
Hydrogen Corridor project, which connects the future Baltic hydrogen market
with Germany. The offshore Baltic Sea Hydrogen Collector offshore project,
which connects Finland, Sweden, and Germany, as well as the energy islands
in the region, will link the vast offshore wind resources to be used for hydrogen
production with demand in Western and Central Europe. The offshore project
might also be connected to the Bornholm-Lubmin interconnector in Denmark.
Corridor E development
(selected projects).
The German TSOs work closely with FNB Gas e.V.15 and the Federal Ministry
of Economics and Climate Action (BMWK) to coordinate the development of
the Hydrogen Core Network. As of July 2023, the total length of the network
is expected to be about 11.200 km. The goal of the planning is to connect the
key supply and demand facilities to enable an open and competitive hydrogen
market. Joint planning will also enable the development of comprehensive support
mechanisms to minimise and derisk investments.16 Note that the final network is
still under discussion and therefore might be updated after the publication of
this report. The latest version can be found on the website of FNB Gas e.V.17.
Development of the network in Germany (selected projects). shows only selected
projects and therefore does not fully correspond to the network developed under
14 FNB Gas (2023). Hydrogen core the FNB Gas e.V. initiative.
network. Source: https://fnb-gas.de/en/
hydrogen-core-network/
15 The association of the supra-regional gas
transmission companies.
16 Hydrogen Insights (2023). How should
Germany fund its 11,200km national
hydrogen network? This is Berlin‘s
latest thinking. Source: https://www.
hydrogeninsight.com/policy/how-should-
germany-fund-its-11-200km-national-
hydrogen-network-this-is-berlins-latest-
thinking/2-1-1497289
17 https://fnb-gas.de/en/
In 2020, the EHB published first-of-its-kind cost data for hydrogen pipeline
infrastructure, outlining the costs associated with pipelines of different sizes,
onshore versus offshore, and new versus repurposed. This data has been
circulated around the world, being utilised by commercial actors, research
institutions, planners, policymakers, and others. Given recent developments to
the global economic picture—whether COVID, geopolitical, or climate-related—
the EHB has undertaken an effort to provide updated cost information to keep
project development, planning, and policy efforts as current and accurate as
possible. In this section, we provide a discussion of CAPEX relating to pipeline
and compressor costs.
The 2023 cost update included a survey of TSOs to estimate the costs associated
with each of the components necessary to build out pipeline infrastructure.
Broadly speaking, these components include material costs, labour costs,
Figure 13
costs to acquire rights-of-way, and miscellaneous additional costs. DEVEX were
calculated as a percentage of the total CAPEX costs. A simple schematic of the
Components included in the CAPEX calculation methodology can be seen in Components included in the
calculation of CAPEX and DEVEX. calculation of CAPEX and DEVEX..
Figure 14 provides comparison of the new and previous EHB cost assumptions
for new-build onshore pipelines and compressors. The graph above the table
displays how the costs of a pipeline can be influenced by external factors (e.g.
population density and elevation). The EHB 2023 values in the table are reflected
of Europe-wide estimates. Although the data distribution has been anonymised
for confidentiality purposes, the visualisation does reflect the true nature of the
collected data. The yellow line represents the current assumption of EHB network
costs.
Figure 14
It is important to note that although this report presents the latest cost estimates
for hydrogen infrastructure within Europe, the numbers are based on three broad
financial assumptions:
1. EHB cost data reflects a Europe-wide estimate. Europe-wide estimates
are reasonable to use in EHB calculations due to the diversity of pipelines
in the pan-European grid. However, these assumptions might not apply to
individual projects, given the diverse terrain or required infrastructure in
differently populated regions. Regions with greater population density or
mountainous geography might encounter costs toward the higher end of
these ranges, while more sparsely populated or with flatter or less complex
terrain will likely be able to take advantage of lower values.
2. Limited empirical data exists regarding large-scale hydrogen
transmission pipelines in Europe. While gas transmission pipeline data
can be extrapolated, uncertainties regarding operating pressure, pipeline
materials, etc., contribute to uncertainty for hydrogen-specific costs. As
described previously, TSO data is consolidated across all responses and
compared with existing studies to reduce any potential bias. However, the
data still relies on estimates underlied by a limited amount of empirical data.
3. Material and labour costs account for 70%-80% of transmission pipeline
and compressor expenses. Consequently, future cost developments are
strongly tied to the development of steel prices, energy prices, inflation, and
workforce dynamics. Overall, it is the EHB’s aim to estimate and monitor the
true cost of a pan-European hydrogen network, enabling this research to
provide value for real pipeline network planners and implementers.
While prices in this update are nominally higher than the costs cited in 2020,
Figure 15 shows that the bulk of the cost increase—as compared with previous
EHB publications—can be attributed to inflation. To corroborate this assertion,
the figure portrays the previous EHB assumptions adjusted for sector-specific
inflation,23 leading to CAPEX numbers that are approximately equal to the new
EHB values.
Figure 15
Upfront CAPEX and DEVEX costs are just a part of the broader financial picture
of hydrogen network development. Conceptually, the EHB network is likely to
encounter two distinct financial phases during its operation that are strongly linked
to the development of the European hydrogen economy (Figure 16). The first of
these phases represents the market ramp-up, involving limited hydrogen demand
and low hydrogen capacity booking on the network. The capacity booking of the
network could consist of both long-term and short-term bookings. However, as
the hydrogen economy develops and demand rises, the market will transition to
the later mature market phase.
The EHB network is projected to be financially viable in the long term, given
the updated unit costs explained in section 4.1 of this report and bottom-
up demand development as laid out by the EHB in previous publications.28
Given the signals of wider institutional support towards hydrogen in Europe,
the financial challenges during operation discussed in the upcoming section
relate primarily to the first, developmental phase of network operation. The main
cause of this potential financial challenge is that demand might take time to
develop, as market design enablers will take some time to be fully developed
and implemented.
During the ramp-up phase, the EHB might therefore encounter an investment
recovery challenge (IRC), meaning that the network might not generate the full
revenue allowed by regulators under a largely similar application of existing—
natural gas infrastructure-based—regulations. Operational revenue streams are
necessary to refinance the costs associated with building and operating the
network; therefore, the challenge is caused by low earned tariff revenue resulting
from a low level of capacity bookings or uncertain network user willingness-
to-pay in the initial phase. Additionally, the duration of market ramp-up might
exceed the timeframe for network operators to recoup missed revenue under
existing cost recovery rules.
Figure 17 Represented by the yellow area on the left side of the graphic, the challenge
arises during the early years of operation. Even considering the optimistic long-
Level of tariff required to realise
regulated return across different
term financial picture, it is important to mitigate the potential effects of high early
financial phases (utilising a single tariffs hindering hydrogen market development. Building a smaller pipeline to
simplified pipeline model). match the initial low hydrogen capacity booking level—while initially requiring
less investment—is neither an efficient nor a competitive solution: it would fail to
accommodate the expected future hydrogen flows, leading either to additional
costs required to build new lines outside of the initial large-scale buildout or
insufficient transport capacity and a bottleneck for Europe’s decarbonisation
efforts.
Conceptual IRC Example: In this simple illustrative example, assume that the regulator has set the RAB revenue cap
at 100€, that the expected booked capacity is 4 MWh/y in the first year, and that the pipe can transport 20 MWh/y at
maximum capacity.
The TSO is allowed to set the tariff at 25€/MWh = 100€ (RAB) / 4 MWh/y (booked capacity). This tariff is visualised by
the yellow line at the start of market ramp-up phase. If network users are willing to pay a tariff of 25€/MWh, no IRC exists.
However, due to low initial capacity booking level (and subsequently low denominator in the IRC equation), the TSOs
need to ask for the calculated 25€/MWh tariff to earn back their network costs. However, such a tariff (in this example) is
likely to be unacceptably high for first movers. Consequently, if network users are only willing to pay 10€/MWh (visualised
by the blue line in Figure 17), there is a 15€/MWh = 25€/MWh – 10€/MWh difference between the tariffs required to
realise the regulated return and the willingness-to-pay of (initial) network users. This scenario results in an IRC of 60€ =
15€/MWh x 4 MWh.
By contrast, in a mature market where hydrogen capacity booking level matches the maximum capacity of the pipes, the
required tariff would be: 5€/MWh = 100€ (RAB) / 20 MWh/y (capacity booking level). This 5€/MWh is likely lower
than the maximum early market end-user willingness-to-pay. After the market has matured, this would mean that tariffs are
acceptable to network users while also allowing TSOs to recover their investments.
Therefore, in many cases, the UFG arises as a consequence of the projected IRC
and represents the difference between the total required upfront investment prior
to project operation29 and the ability of a TSO to finance the project (Figure 18).
There are cases where TSOs have sufficient capital available but are not able to
invest this capital, as the IRC poses too big of a risk.
Figure 18
The UFG poses a particular problem for the upfront capital that is reserved
for DEVEX. If TSOs do not have sufficient capital to conduct developmental
activities, the timeline to build a project is directly delayed (this is the first step
in realising a project, as section 3.1 shows). Therefore, the UFG—which impacts
the DEVEX—should be a primary concern of European policymakers aiming to
achieve ambitious decarbonisation goals.
Policymakers could mitigate the challenges associated with the UFG by facilitating
funding or guarantees in an amount appropriate to counter the IRC. In this way,
network development could be sufficiently derisked and able to attract market-
rate investment to finance its buildout.
5. What to energy system. Hydrogen makes use of plentiful European and neighbouring
resources, serves a multitude of sectors—including those typically viewed as hard
expect from
to decarbonise—and provides connectivity and resilience across the continent.
Simply put, the hydrogen infrastructure network is of critical importance for
the EHB in
achieving energy transition goals while preserving the competitiveness of the EU.
In this paper, we have conceptually framed certain financial challenges that could
2024 potentially arise in the emerging hydrogen market. Future EHB efforts will explore
the size of the financial commitment required for the EHB network development
and compare it with the existing funding mechanisms already available for
hydrogen infrastructure development. In conjunction, we aim to examine the
current and future role of the EU and member states in funding the EHB.
Beyond the financial challenges, there are a variety of considerations related to the
hydrogen value chain and project delivery process that could help to enable the
timely and efficient implementation of the EHB. Each of these ecosystem factors
contributes to the success of the emerging hydrogen market, and in turn provides
some measure of risk mitigation for financiers by streamlining the process and
encouraging hydrogen market development. Future EHB efforts will also recap
the current understanding of these supplemental and ecosystem considerations,
with recommendations for an efficient path forward to implementation.
The project includes the development of a hydrogen backbone from Sicily to the
export points with Austria and Switzerland, enabling the transport of hydrogen
produced in Northern Africa and Southern Italy to the main national and European
consumption areas. The project supports creation of an interconnected EU
hydrogen market, ensuring diversification and security of supply and positioning
Italy as a hydrogen hub.
SoutH2 Corridor
Project partners: Snam, TAG, Gas Connect Austria and bayernets
Development phase: Pre-feasibility phase / feasibility phase
Website: https://www.south2corridor.net/
The bidirectional design of TAG’s 380 km hydrogen pipeline meets the local
needs of customers in Austria and enables Italy, Germany, Slovakia, Czech
Republic, and all of central and eastern Europe to develop a common hydrogen
market, promoting competition and security of supply. The system is optimised
to transport hydrogen from the Snam system at 168 GWh/day capacity from low-
cost production areas in North Africa.
The Central European Hydrogen Corridor, Czech part (gas pipeline DN 1.400,
403 km), between the Czech/Slovak border and Czech/German border enables
transport of pure hydrogen of 144 GWh/d starting by the end of 2029 and
aims to create a part of a hydrogen “highway” in Central Europe for transporting
hydrogen from two major hydrogen supply areas outside the EU (mainly Ukraine
and North Africa) as well as the supply areas along the corridor to expected high
demand clusters along the corridor, especially in Germany.
The supply corridor from North Africa will go to Germany through Italy, Austria,
Slovakia, and Czechia and is developed as SunsHyne. The project is promoted
by the following gas TSOs: Snam (IT), TAG (AT), EUSTREAM (SK), NET4GAS
(CZ), and Open Grid Europe (DE).
The supply corridor from Ukraine will go to Germany through Slovakia and
Czechia and is developed as project CEHC. The east-west corridor is promoted
by four gas TSOs: Gas TSO of Ukraine, EUSTREAM (SK), NET4GAS (CZ), and
Open Grid Europe (DE).
H2 Backbone Murfeld
Project partners: Gas Connect Austria
Development phase: Pre-feasibility phase
Website: https://h2backbone-murfeld.at/en/home-english/
With the realisation of the project bidirectional cross-border hydrogen transport
possibilities between Slovenia and Austria to the extent of 33 GWh/day (12
TWh/a) are established. The project enables the transportation of hydrogen from
the South, e.g., from Croatia via Slovenia or Italy to Austria. Hence, it contributes
to the diversification of the future hydrogen supply supporting consumption areas
in Austria, such as Styria, the wider area of Vienna and Linz and surrounding
industrial regions in neighbouring countries.
The CelZa (Celorico-Zamora) is part of the H2Med corridor and is about 242 km
long with a bidirectional capacity of 81 GWh/d (HHV), links and supplements the
development of the BarMar interconnection project, enabling the emergence of a
supply corridor. With the CelZa as an enabler, REN considers a first component
of the Portuguese Hydrogen Backbone with new pipelines between Figueira
da Foz and Cantanhede and the repurposed portion between Cantanhede –
Celorico da Beira – Monforte, allowing the connection of Green H2 Valley at
Figueira da Foz and other producers along the corridor.
The Portuguese Hydrogen Backbone is linked to the CelZa project and includes
a new Figueira da Foz–Cantanhede hydrogen pipeline, about 50 km long, and
three repurposed pipelines: Cantanhede-Mangualde (68 km of a trunkline and
8 km branch line), Mangualde-Celorico da Beira (48 km of a trunkline), and
Celorico da Beira-Monforte (213 km of a trunkline plus 4 km branch line).
This project creates a condition for the production and integration of green
hydrogen, both in Portugal’s central inland region and in the Figueira da Foz
region, which benefits from its proximity to industrial infrastructures and offshore
wind production as part of the objectives pursued by the government.
By 2030, the proposed hydrogen network will connect the industrial clusters
along the Mediterranean coast and in the north of Spain, where two underground
storage projects could also link to the network. The network will also comprise
pipeline axis along the Via de la Plata and Ebro Valley to harness the potential for
hydrogen production from the rich renewable resources of these areas. Later,
the development of the network will guarantee cohesion between the different
demand regions and integrate the multiple supply points that will be distributed
across the country.
The project has a capacity of 0.40 Mt/y and consists of 460 km of new and 180
km of repurposed natural gas pipelines for hydrogen transport:
− Connection of the saline cavern storage facility near Lacq to the Iberian-
Franco-German H2Med corridor
− Connection to the renewable energy and hydrogen production hub in Port-
la-Nouvelle
− Connections to key demand centres and additional production sites in the
ports of Bordeaux and Bayonne
HySoW has received explicit support from more than 37 national and international
stakeholders, including public authorities (e.g., French Ministry for the Energy
Transition, Région Occitanie, Région Nouvelle Aquitaine), hydrogen producers
(e.g., H2V, DH2 Energy), and off-takers (e.g., Lafarge, Aerospace Valley, or
BASF). Teréga is also actively cooperating with GRTgaz, Enagas, and REN on
delivering the H2Med corridor.
BarMar (part of H2Med corridor)
Project partners: GRTgaz, Teréga, Enagás, OGE
Development phase: Pre-feasibility / Feasibility
HY-FEN
Project partners: GRTgaz
Development phase: Pre-feasibility phase
The HY-FEN project aims to develop a French hydrogen transmission network via
pipeline, connecting the Iberian Peninsula (via H2Med) to Germany (H2ercules)
and national storage sites by 2030. Security of supply and flexibility will be
enhanced through access to UGS projects (such as GeoH2 and HySoW) and
future salt cavern projects in Etrez and Tersanne/Hauterives in the Rhône Valley.
HY-FEN will further enhance the Hynframed, MosaHYc, HySoW, and RHYn projects
by providing access to competitive hydrogen from various sources, particularly
imports. Overall, stakeholders of the mentioned projects will gain access to
hydrogen volumes produced/stored outside their immediate periphery, thereby
broadening the market for large hydrogen volumes. In Germany, Corridor B
connects to the H2ercules project to continue supply from HY-FEN (see Section).
The objective of the Dutch hydrogen network project is to create an open access
non-discriminatory national and cross-border network and for connection with
large-scale hydrogen storage in northeast Netherlands. This network will be
composed of 70%-80% repurposed natural gas pipelines, with the addition of
new pipes in areas where connections are not yet available. Once complete, the
hydrogen network will connect onshore and offshore hydrogen sources with
consumers in the Netherlands, Germany, and Belgium. As such, the hydrogen
network will form a vital part of the EHB and help kickstart the shift towards
carbon-neutral energy in Europe.
AquaDuctus
Project partners: GASCADE, Fluxys
Development phase: Feasibility / Pre-FEED phase
AquaDuctus will be an offshore hydrogen pipeline and connect the first large-
scale offshore hydrogen wind farm site SEN-1 (up to 1 GW generation capacity)
located 150 km northwest of the island of Heligoland. The 48” offshore pipeline
will transport green hydrogen to Wilhelmshaven, Germany. Through an additional
onshore pipeline, a direct link to Hyperlink will secure downstream connection to
hydrogen users. AquaDuctus will be capable of picking up additional hydrogen
quantities, e.g., from further hydrogen wind farm sites, re-powering existing wind
farms, and providing the interconnection of adjacent offshore hydrogen pipelines
(e.g., from DK, NL, UK or NOR) aiming for export of local hydrogen production
to the European market. Hence, AquaDuctus (total length of approximately
250 km) will already be designed to transport up to approximately 20 GW of
hydrogen capacity.
Fluxys has the ambition to link hydrogen import facilities and local hydrogen
production in Belgium with industrial clusters through an interconnected hydrogen
backbone. This project aims to kickstart the development of the hydrogen
economy in northwest Europe. The import of hydrogen in maritime ports and
interconnections with adjacent countries such as Germany, the Netherlands, and
France are foreseen to ensure security of supply and flexibility. Repurposing
existing infrastructure is put forward to reduce the system cost of the hydrogen
value chain. The first phase of infrastructure is planned for implementation in
2026.
The aim of the Nordic Baltic Hydrogen Corridor project is to enable transport
of 7-11 Mt of green hydrogen produced in the Nordic and Baltic Sea region
to Central Europe and demand centers along the corridor covering up to
100% of REPowerEU domestic hydrogen supply targets. The corridor project
aims to integrate the Nordic, Baltic, Polish, and German hydrogen markets
with connecting hydrogen infrastructure and to trigger further infrastructure
developments to connect additional hydrogen suppliers and consumers in these
countries. The project is aiming to foster market processes between producers,
consumers, and trading companies that might enter the hydrogen markets in
Finland, Estonia, Latvia, Lithuania, Poland, Germany, and beyond.
The Baltic Sea Hydrogen Collector will be a newly built, large-scale, cross-
border, offshore, bidirectional transmission system of 1,250 km in the Baltic Sea,
promoted by Gasgrid Finland Oy and Nordion Energi AB, and supported by
co-investors OX2 AB (OX2) and Copenhagen Infrastructure Partners (CIP).
As one of the core systems envisioned as part of the EHB, the Baltic Sea
Hydrogen Collector is an offshore pipeline project with the potential capacity of
296 TWh/y that will connect mainland Finland and Sweden with Finnish Åland
island and Germany by 2030. The offshore project might also be connected to
other energy islands in the region such as Gotland and Bornholm in Sweden
and Denmark. The aim of the Baltic Sea Hydrogen Collector is to unlock the
significant offshore wind potential in the Bothnia Bay and Baltic Sea region,
creating a booming hydrogen market and connecting both supply and demand.
The description of the hydrogen Backbone WAG + Penta West project, which
enables hydrogen transportation from Slovakia – Austria - Germany can be found
in the project description in Corridor A. It is also part of the SoutH2 Corridor.
In Germany, Corridor E connects to the H2ercules via CEHC and CGHI projects
and also to the HyPipe Bavaria project via H2 Backbone WAG + Penta West.
GR/BG H2 Interconnection
Project partners: DESFA, Bulgartransgaz
Development phase: Feasibility
H2ercules
Project partners: OGE
Development phase: Pre-feasibility and feasibility phases
With an initial technical capacity of 144 GWh/d, the project aims to transport
hydrogen as of 2030. The total length of the corridor is 1,068 km and consists
of 90%-100% repurposed pipelines.
doing Hydrogen
Project partners: ONTRAS Gastransport GmbH
Development phase: feasibility phase/pre-FEED
Website: https://www.doinghydrogen.com/
The Central German Chemical Triangle needs green hydrogen. The same is
true for the industries in Saxony-Anhalt and the steel region in Salzgitter/Lower
Saxony. Green Octopus Mitteldeutschland (GO!) is the future transport route for
this hydrogen: GO! connects the regions and integrates the future hydrogen
storage facility in Bad Lauchstädt. From 2026, GO! will ensure the secure
transport of hydrogen with a network of pipelines covering around 305 km. GO!
will also make use of other hydrogen pipelines to integrate these regions into
the growing EHB. A connected cavern storage facility with a working gas volume
of 50 million cubic meters supports the hydrogen infrastructure and ensures a
balance between supply and demand. Along with doing hydrogen, GO! is one
of the ONTRAS projects that has been selected by the German Federal Ministry
of Economics and Technology as IPCEI in 2021.
A hydrogen pipeline system of the Hyperlink 1 and 2 projects will connect the
Dutch and German hydrogen networks. As a central part of the hydrogen network
planned by Gasunie, the pipeline will run from the border at Oude Statenzijl
and Bunder Tief through Germany to the Hamburg region. It also connects
a storage facility near Nüttermoor and the Bremen region with Leversen. The
first consumers and producers within the area covered by Hyperlink 1 will be
able to be connected in 2026-2027. The Hyperlink 2 project is expected to be
completed and operational by 2029 to supply a steel plant in Salzgitter. The
project has an IPCEI status. In Heidenau, Hyperlink 3 joins up with the other
Hyperlink sections to enable the transmission of hydrogen to customers in other
parts of Germany too.
Hyperlink 4 & 5
Project partners: Hyperlink 4 – Gasunie; Hyperlink 5 – Gasunie and
Thyssengas
Development phase: feasibility phase/pre-FEED
Website: https://www.hyperlink-gasunie.de/en
The Hyperlink 4 project will enable the transfer of imported hydrogen from the
Wilhelmshaven terminal and Norway to northwestern Europe. The Wilhelmshaven
terminal will be directly connected to the hydrogen network. The Hyperlink 4
project will enable direct supply to the major industrial clusters and urban centres
of Hamburg, Bremen, and Hanover via the Hyperlink 1 and 2 pipelines and to
the Ruhr region via Hyperlink 5. The Hyperlink 4 and 5 projects are candidates
for PCI status and are expected to be in operation by 2030.