RWE, OGE team up for H2ercules hydrogen infrastructure concept
German transmission system operator OGE and compatriot utility RWE have jointly developed the national infrastructure concept called H2ercules.
Germany is facing major challenges in the decarbonisation and diversification of its energy supply. Therefore, quick solutions are needed to secure the energy supply and carbon neutrality. In this context, it is essential to ramp up the hydrogen economy as quickly as possible.
In order to speed up building a German hydrogen industry and infrastructure, OGE and RWE jointly developed the H2ercules concept. The infrastructure is to connect electrolysers as well as storage and import facilities in the north of the country with industrial consumers in the west and south of Germany.
Additional import routes from the south and east, currently under development, will be connected by 2030. H2ercules is thus set to become the backbone of a hydrogen infrastructure linking the North Sea coast with southern Germany. The first large companies, such as Thyssenkrupp, have expressed their interest in being connected to such a grid.
The implementation of the project will cost about €3.5 billion. However, as it can use converted existing natural gas pipelines, the proposal can be implemented significantly more quickly and cost-effectively.
“In order to achieve its climate goals, the industry needs large volumes of green hydrogen – as quickly as possible. RWE is thus planning to construct additional electrolyser capacities in the coastal regions of northwest Germany by 2030. The green hydrogen produced there is then to be transported from the north to the steelworks, chemical plants and refineries in the Ruhr area and southern Germany. Together with OGE we are addressing this challenge and we are planning to build Germany’s first hydrogen fast track,” said Markus Krebber, CEO of RWE.
Jörg Bergmann from OGE added: “The concept is to be seen as a proposal that can be implemented in order to solve the Herculean tasks of decarbonising and diversifying the energy supply. These tasks can only be mastered if companies collaborate across different levels of added value with the support of policymakers to quickly create suitable operating conditions.”
Roles in H2ercules project
According to the parties, the roles in the H2ercules project are clear.
RWE wants to construct new electrolysers with a combined capacity of up to 1 gigawatt by 2030 to produce green hydrogen. In addition, it is planning to import large volumes of hydrogen. RWE also intends to build H2 ready gas-fired power stations with a capacity of at least 2 gigawatts close to the planned H2ercules route, and for its gas storage systems near the Dutch border to also connect into the hydrogen pipeline.
OGE will ensure that the green hydrogen can reach customers by converting existing natural gas pipelines for hydrogen transport and building new pipelines. In this way, a pipeline network of approximately 1,500 kilometres can be created that fits into the Germany-wide hydrogen network planning.
The coordination process for the Gas Network Development Plan (NEP Gas) ensures coordination with the hydrogen activities of the other market players.
In addition, H2ercules opens up new opportunities for connecting Germany to major import routes; initially via pipelines in Belgium and the Netherlands, and at a later stage via Norway as well as southern and eastern Europe. There is also potential for import terminals for green molecules in northern Germany in the future. In this way, the project will contribute towards the creation of a European hydrogen market.
The project is open for other partners to participate along the hydrogen value chain. It will be able to cover two-thirds of the hydrogen demand from the German industrial centres along the recommended route by 2030. In addition to industrial consumers, smaller companies may also benefit from the project.
Successful implementation of this venture requires the necessary conditions to be in place, the subject of upcoming discussions between RWE and OGE with policymakers.