The energy transition will not only be decided at the locations of energy production, but also in particular in the lines that bring generation and demand together. The electricity, gas and, in future, hydrogen grids must be consistently aligned with these new requirements. The transmission system operators bear particular responsibility for a gas transport system that guarantees climate neutrality, security of supply and resilience at the same time. A key project here is the hydrogen core network.
The energy transition requires a twofold commitment from the transmission system operators (TSOs): today, their networks ensure a reliable supply of natural gas. At the same time, they are shaping the future by creating the basis for a climate-neutral gas supply with the hydrogen core network. Three goals characterise this transformation process within the energy transition: Climate neutrality, security of supply and resilience.
Climate neutrality: hydrogen as the key, the H2 core grid as the foundation
Many industrial processes cannot be decarbonised simply by flicking a switch. Hydrogen is the key here: it enables CO2 reduction where electrification reaches physical or economic limits. This is the case in steel production, the chemical industry and heavy goods transport, for example. In the steel sector alone, around 28 tonnes of CO₂ can be saved with every tonne of green hydrogen. In order to realise the potential of hydrogen as an energy source, the FNB is currently building the necessary infrastructure: the Germany-wide hydrogen core network. It connects production sites, import points, storage facilities and large consumption centres over a distance of around 9,040 kilometres. New north-south and west-east axes create the basis for a nationwide hydrogen supply. With the development of the transport infrastructure, the TSOs are making targeted advance investments to enable the hydrogen ramp-up
Security of supply: reliable supply today, efficient conversion tomorrow
The transmission grid has been the backbone of the energy supply for decades: It reliably moves large amounts of energy over long distances and connects import points, storage facilities and industrial centres. This network is not a relic of the past, but a locational advantage for the future. It can be further developed, adapted and largely converted to climate-neutral gases. The transition to a hydrogen economy will take time. Despite the growing use of hydrogen, natural gas will remain indispensable in the coming years. That is why the TSOs are pursuing a dual strategy: securing the stable natural gas supply of today and at the same time gradually making the grids H₂-ready. New transport connections are currently being planned and built for the hydrogen future, interfaces to import terminals and storage locations are being created and existing pipelines are being adapted so that they can be seamlessly integrated into the future hydrogen system.
Resilience: the underestimated system insurance
The future energy system must not only be efficient, but also robust and crisis-proof. Resilience means that the energy supply must not depend on a single line, technology or supply chain. Multiple paths, redundancies and flexibility must ensure that energy flows even in the event of disruptions. This is precisely where gas and, in future, hydrogen grids make a decisive contribution. They stabilise our energy system as an important buffer: for example, when there are fluctuations in electricity generation from wind and sun or when the electricity grid is disrupted in its function. Hydrogen can be used particularly flexibly. Many potential import sources and broad domestic production ensure diversification and therefore independence - an important building block for resilience. The conversion and modernisation of the infrastructure is therefore much more than a construction project: it is a security project. In a world of geopolitical tensions, a resilient, diversified and crisis-proof energy supply is a strategic advantage. At the same time, it is a key location factor for industry. Biomethane also plays an important role here: it complements the system as a flexible energy source that can close supply gaps and create additional controllability.
Market development lags behind grid development
Infrastructure alone does not create an energy market. Grids can be planned, lines can be converted to hydrogen and new transport routes can be built. But without generation and demand, there is nothing to connect. It is precisely in this area of tension that the H₂ grid development is currently taking place. Even though the official go-ahead was given with the approval of the H₂ core grid in October 2024 and the first projects, partnerships and investments have been initiated, the breakthrough has yet to materialise. Despite positive signals, there is still a great deal of uncertainty in large parts of the energy sector and industry. Many players are hesitating, investments are being postponed and business decisions are being postponed. What is missing is a reliable framework: Clear rules and political backing that give decision-makers an economic perspective for their investments. Several factors are currently slowing down the hydrogen ramp-up: EU regulations are making the production of green hydrogen more difficult, while requirements for low-carbon fuels threaten to restrict the use of blue hydrogen at an early stage. Important national guidelines are also missing: from H₂ readiness for power plants to a consistent CCS strategy and effective subsidy mechanisms. In addition, hydrogen is currently significantly more expensive than natural gas. Without the necessary commitment on the customer side, suppliers will not make decisions in favour of building electrolysers or concluding long-term import contracts. This poses a dilemma for the TSOs: if they plan and build the hydrogen core network too early and too large, the costs and thus the risks increase. If they plan too small, the lack of infrastructure will slow down the market before it even gets off the ground. The result is a state of limbo. As long as supply, demand and infrastructure are not better harmonised, the hydrogen ramp-up will remain fragmented. The necessary market breakthrough will not materialise. A functioning hydrogen market can only emerge if investments are made in production and import infrastructure in addition to the H₂ core network. Customers need a reliable supply and therefore planning security for many years to come. Politicians are now called upon to provide this.
Political tailwind or just a gentle breeze?
The problem of the H₂ ramp-up has long been known. Ever since the Tagesschau headlined "Hydrogen boom is a long time coming" in the summer, it has been clear that there is not a lack of realisation, but a lack of consistency. Following the recently presented monitoring report on the energy transition, the necessary political framework is now urgently needed. Nevertheless, the Federal Ministry of Economics' 10-point plan (note: the topic of H₂ is dealt with in point 9) is a first step away from the hydrogen hype towards more efficiency, less complexity and economic rationality. We expressly welcome the announced focus on the overall system. This course correction is the right one: the H₂ ramp-up must become more focussed, realistic and cost-efficient if it is to be sustainable in the long term. However, cost efficiency must not become an end in itself and promotion must not be limited to selective individual measures. A new energy policy course, as outlined in the 10-point plan presented, is not yet a holistic regulatory or funding framework. What is urgently needed now is concretisation and targeted, broad-based government support in order to create planning and investment security and thus bring together supply, demand and infrastructure.
1. capital market-compatible investment conditions In order for the hydrogen core network and other key projects to become a reality, private capital must be mobilised on a large scale. However, this requires reliable, attractive and capital market-compatible framework conditions that offer investors security and a realistic return expectation. With the current framework conditions, the risk-return ratio is not attractive compared to the investment alternatives. This is another area where politicians need to take action now. At the same time, the financing framework should be designed with foresight: It must not focus solely on major pipeline projects, but must also promote regional grid connections and cross-border links. This is the only way to create an integrated and scalable hydrogen network that reliably connects production, import, storage and consumption.
2. supply: consistently promote production A competitive supply is a prerequisite for a functioning hydrogen market, security of supply and geopolitical resilience. The development of a new market will not succeed with selective measures, but requires strategic, coordinated promotion. The 10-point plan identifies important levers: a better import strategy, more domestic electrolysis capacities and funding approaches that are open to all technologies. It is now important to turn these into concrete measures with clear timetables. We need reliable energy partnerships with supplier countries, long-term purchase agreements and political safeguards that give investors confidence. At the same time, the expansion of domestic H₂ production must be massively accelerated - with faster approvals, more electrolysers and significantly more renewable electricity. More pragmatic criteria for green and low-carbon hydrogen are absolutely essential in order to reduce costs and bring volumes to the market more quickly.
3. demand: create lead markets, trigger investment Without reliable demand, even a well-developed supply will be ineffective. Today, hydrogen is still significantly more expensive than natural gas. Without targeted political support, a liquid H₂ market remains a dream of the future. The 10-point plan names initial instruments, but they are still too vague and too small. What is needed are clear signals: purchase guarantees and price safeguards that give companies planning security. Industry will only switch production processes if it knows that the changeover is worthwhile. Lead markets in sectors such as steel and chemicals can also help to achieve economies of scale and reduce costs. Funding instruments such as climate protection agreements, H₂ cluster funding, double auctions or tenders for H₂-ready power plants must now be introduced quickly and decisively. Equally important is an EU regulatory framework that is open to technology and investment-friendly. This is the only way that supply and demand can grow together.
4. secure the transition - further develop the natural gas grid Even if hydrogen and other green gases are the future, natural gas remains indispensable in the transition phase. It secures energy for industry and households and stabilises the electricity market as long as renewable energies and hydrogen are not available in sufficient quantities. This is why the existing infrastructure must continue to operate economically and targeted expansion and conversion measures are needed. These include grid reinforcements for conversions to hydrogen, additional capacities for the planned gas-fired power plants if necessary and replacement investments for older lines that will still be needed until 2045. The Federal Network Agency's ongoing NEST process and the further development of incentive regulation must go beyond mere cost reductions. The regulatory framework should enable investments, create planning security and give grid operators sufficient room for manoeuvre to take regional needs and industrial developments into account.
Conclusion: It can only work together
The TSOs are making advance investments in the development of the H₂ core grid. But they cannot build "into the blue": Only when generation and demand are secured and binding purchase commitments are in place can the TSOs really pick up the pace. Infrastructure alone does not lead to urgently needed CO₂ savings. For the transport grids to become real lifelines of the climate transformation, politics, regulation and the market must play their part. Reliable framework conditions are needed so that capital flows. Faster approvals so that projects become reality. And far-sighted industrial policy decisions to turn hydrogen from a vision into an economic foundation. Without hydrogen, industrial decarbonisation in Germany and Europe will not succeed. The hydrogen core network is the key to this. Anyone who really wants climate neutrality must also make it politically possible - with courage, clarity and speed. Only if we act today will Germany become climate-neutral, competitive and resilient tomorrow.
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Specialist article by Dr Thomas Becker at energate