Hydrogen - VNG invests in hydrogen grid in Mitteldeutschland
The transmission network operator Ontras intends to engage in the future hydrogen core network in Middle Germany with an investment volume in the mid-hundred million range. Ontras' subsidiary, named responsible for around 600 km of hydrogen transport pipelines in the Middle German region, as announced by Ontras in Leipzig. Accordingly, around 80 percent of the hydrogen transport pipelines are existing natural gas pipelines that will be converted to hydrogen. Around 20 percent will be newly built.
Hydrogen pipeline between industrial centers
The project's goal is to connect the Leipzig region with the Middle German Chemical Triangle, industrial centers in Saxony-Anhalt and Lower Saxony, the Berlin region, and the Meissen Industrial Belt. According to the information provided, a hydrogen ring in the region Leipzig with an extension to the Meissen Industrial Belt (Saxony), a connection from Bad Lauchstädt (Saxony-Anhalt) to Berlin-Süd, and a connection to Salzgitter (Lower Saxony) are to be realized. The hydrogen transport pipeline between the Leipzig region, Bad Lauchstädt, and Salzgitter is a so-called IPCEI project ("Important Project of Common European Interest").
Largest single investment in company history
"In total, we are looking at the largest single investment in our over 65-year corporate history with our participation in the hydrogen core network application," said the VNG managing director Ulf Heitmüller. For the VNG Group, it is the largest project to date in the field of decarbonization. "The construction of the hydrogen core network is a pioneering infrastructure project to enable the national hydrogen high-performance network." Ultimately, the project contributes to securing the competitive position of the German industrial location.
VNG intends to participate in the construction of the core network through Ontras and invest substantially in Eastern Germany, Heitmüller further stated. "We are taking this step despite some uncertainties, especially regarding the financing framework and the difficult-to-predict demand and price development for hydrogen and the associated risks for the infrastructure." To limit these risks, a phased construction is initially planned. Further projects would be possible with an improvement in financial framework conditions.
- Ontras' investment in the hydrogen core network in Middle Germany falls within the 'million-range'.
- The hydrogen transport pipelines in the Middle German region, overseen by Ontras, extend to industrial centers in Saxony-Anhalt, Lower Saxony, Berlin, and the Meissen Industrial Belt.
- The hydrogen pipeline project aims to connect the Leipzig region with Salzgitter in Lower Saxony, involving a significant portion of existing natural gas pipelines conversion.
- VNG Group, with its managing director Ulf Heitmüller, is embarking on its largest single investment in decarbonization history through the hydrogen core network application.
- The hydrogen transport pipeline between Leipzig and Bad Lauchstädt in Saxony-Anhalt is part of an IPCEI project, striking a significant impact on Germany's hydrogen high-performance network.
- Ontras' subsidiary will oversee around 600 km of hydrogen transport pipelines in the Middle German region, with approximately 20% newly built and 80% converted from existing natural gas pipelines.
- Companies in Leipzig, Leipzig's chemical industry, and other regions in Middle Germany such as Meissen and Salzgitter, stand to benefit from this large-scale hydrogen infrastructure project.
- Bad Lauchstädt in Saxony-Anhalt will be connected to Berlin-Süd through the hydrogen transport pipeline, reducing emissions and promoting renewable energy sources.
- The phased construction plan is in place due to some uncertainties, such as financing conditions and hydrogen's unpredictable demand and price development, for the VNG Group's participation in the hydrogen core network.
