The traffic light coalition ruling Germany agrees on billions in financing for the hydrogen network

   "The traffic light coalition has decided on the financing for the development of a hydrogen core network, which should be in place by 2037 at the latest. The network is to be set up privately and financed through user fees.

 

     The traffic light coalition has agreed on the financing methods for the billion-dollar development of a hydrogen core network. The energy policy spokesmen for the three parliamentary groups announced on Friday that the project could now be discussed and decided on in the Bundestag next week.

 

     Contrary to what was envisaged in the proposal by Economics Minister Robert Habeck (Greens), the 10,000 kilometer network should not be in place in 2032, but only by 2037 at the latest.

 

     This would also stretch the financing burden for the operators, emphasized SPD expert Nina Scheer. In addition, if one operator goes bankrupt, the others should not be liable. “We have ensured that the core network is being built privately and are now creating attractive investment conditions for the industry,” said FDP expert Michael Kruse.

 

     The network is intended to connect industry, power plants, ports and storage facilities.

 

     The transmission system operators (FNP) estimate the costs at almost 20 billion euros. In principle, the core network should be financed entirely through user fees and built by private companies. A good 60 percent of existing natural gas pipes can be repurposed, but the other part requires new construction. The companies are guaranteed a return on equity of around 6.7 percent before taxes.

 

     As with natural gas and electricity, the lines should be paid for through user fees.

 

     Since there will initially be relatively few buyers, the state wants to make advance payments over the next few years in order to keep use affordable and to promote the ramp-up of the hydrogen economy.

 

     Since the government assumes that more and more users will access the network over the years, the so-called amortization account should be balanced by 2055 at the latest. If there is still a shortfall, the line operators must, according to the draft, contribute 24 percent of it. Contrary to initial considerations, the construction should be carried out solely by the private sector - albeit with guarantees from the federal government.

 

     With the new regulations in the EnWG, there will also be ongoing network development planning for gas and hydrogen. In 2026, a network development plan for gas and hydrogen is to be approved by the Federal Network Agency for the first time." [1]

By 2037 German industry will be completely gone because of high energy prices, introduced, let's say it openly, by failed sanctions on Russia. Norway is selling expensive gas to Germany and making some nice piles of cash. Some others enjoy the same game. These are like vultures feeding on the dead horse of German industry, the only industry left in the West. Political punishment for this crime is already seen from Scotland to Washington, D.C. You say, what is the crime here, it was ours, we destroyed it. If there was no climate catastrophe, then, you idiots, destroy what is yours as much as you want.

 

1. Ampel einigt sich auf milliardenschwere Finanzierung des Wasserstoffnetzes. Frankfurter Allgemeine Zeitung (online) Frankfurter Allgemeine Zeitung GmbH. Apr 5, 2024.