One step closer to a Norwegian/German hydrogen value chain

“The integration of Norwegian hydrogen imports into the German hydrogen pipeline network could be possible without delays and without increased overall network costs”, concludes the report presented by the Norwegian Minister of Petroleum and Energy. 

The report has considered both reuse of the existing pipelines, and building of a new network. With a pipeline infrastructure, Norwegian sites can export natural gas converted into hydrogen, while capturing the CO₂. This process reduces the emittance by 90 %, compared to today’s use of natural gas. The rapport suggests pipelines from either Mongstad/Kollsnes in Greater Bergen, or Aukra or Kårstø. 

- We have reached a milestone, stated Minister of Petroleum and Energy Terje Aasland when he presented the report this week.

He underlines that the report shows that establishing a hydrogen value chain between Norway and Germany is technically feasible, given that the right assumptions are in place, and continued:

Norwegian Minister of Petroleum and Energy Terje Aasland. Photo: Naina Helen Jåma NTB/Kommunikasjon.

- I want to thank Gassco and DENA for leading the study in an excellent manner, and look forward to following this work further.

Germany needs to import blue hydrogen

The industry-led feasibility study has been carried out the last year, with objective to assess the viability of a German-Norwegian hydrogen value chain, from potential hydrogen producers in Norway to consumers in Germany. Looking further ahead, aslo German steel facories are predicted to be able to use blue hydrogen. 

The projected demand for hydrogen in Germany is expected to exceed the domestic production volumes for hydrogen already before 2030, making import necessary both in short-term and long-term. The German core network is planned to be regulated. The grid charges and further grid planning necessary to integrate increasing imports from Norway into the German grids are planned available by the end of 2023. Under the assumption that the grid fees will be set in a regulated manner and will be the same throughout Germany, there will be no disadvantages for the first consumers, regardless of their location.

Confirms regional predictions

The study points out that a development depends on critical success factors, as a sufficient market maturation and customer willingness to pay on the user side. Also regulatory framework and technology qualification must align to reach the goals within 2030.

The report’s findings are important for potential projects in the Greater Bergen area, as they confirm predictions made by several parties in the region. The report will now be followed up in the joint Task Force which was recently set up between German and Norwegian authorities.

You can read the report in full text here.