Germany set to join H2Med hydrogen pipeline project

Gary Hornby

23-Jan-2023

LONDON (ICIS)–Germany is set to join Portugal, Spain and France in the H2Med hydrogen pipeline project, it was announced over the weekend at the 60th anniversary of the Elysee Treaty.

“We will also take the necessary steps on a European backbone for hydrogen transport across Europe, including the necessary national and transnational hydrogen infrastructures and, in particular, the extension and connexion of existing and planned infrastructures, including extension of the H2Med pipeline to Germany in close cooperation with involved partners, and also for extending and reinforcing the electrical grid within the whole European Union,” French President Emmanuel Macron said.

The H2Med pipeline, forecast to become operational in 2030, will move renewable hydrogen between Portugal, Spain, and France.

The capacity of the €2.5billion pipeline is slated at 2million tonnes/year.
Germany has at its hydrogen strategy core a strong emphasis on renewable hydrogen and renewable ammonia imports, with estimations from the German government that the country will have 90-110TWh of hydrogen demand by 2030.

However, with domestic production capacity estimated to be around 14TWh over the same time frame, imports are due to account for the bulk of the hydrogen demand within the country.

Portugal and Spain have previously stated that they are seeking to export renewable hydrogen sourced from renewable energy sources, and France is targeting an electrolyser capacity of 6.5GW by 2030.

Data from ICIS showed that a 10-year power-and-purchase agreement beginning in 2024 in Spain would cost €6.02/kg for solar and €5.68/kg for onshore wind on 20 January.

Equivalent German contracts were at €10.35/kg and €8.16/kg respectively, with offshore wind at €7.32/kg.

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