Country Narratives

Austria’s current gas transmission system is operated by two TSOs, TAG and GCA and covers approximately 1,700 km. The three parallel TAG pipelines were designed to transport natural gas from the eastern border with Slovakia to Italy, but due to the bidirectional function, operation in both directions is possible which strengthens their role as an interconnector. GCA transports gas via its transmission pipelines from Slovakia to Germany, Hungary and Slovenia as well as from Germany to the neighbouring countries. Domestic customers are supplied via GCA’s primary distribution system in Austria.

In the future, both TSOs expect to transport hydrogen, while providing the basis for a domestic hydrogen network. This is in line with the Austrian hydrogen strategy, which envisages the existing gas pipelines for future hydrogen transport embedded in a pan-European infrastructure. Hydrogen can be transported either blended with methane or in pure form. The latter can be carried out via dedicated hydrogen pipelines or via deblending facilities, which extract hydrogen from the methane/hydrogen mixture.

Austria has set itself the ambitious target of generating 100 % of its electricity from renewable sources by 2030 and becoming carbon neutral by 2040, although this is enabled partly through its hydropower sources, solar and wind energy will need to be significantly expanded. Future hydrogen use will increase in Austria due to its industry presence in fuels, chemical, steel and other hard-to-abate sectors. However, the main driver for the emerging hydrogen infrastructure is the transit function for the corridors: East-West (Ukraine - Slovakia - Austria - Germany), South-North (North Africa - Italy - Austria - Germany) and North/North-West-South/Southeast (North and North-West Europe - Germany - Austria - East and South-East Europe). In addition to the transit role, the network would also supply domestic residential and industrial customers.

Fluxys Belgium is the owner and operator of gas transmission, storage and LNG regasification facilities in Belgium. The network consists of 4,000 km of pipelines and 18 interconnection points with neighbouring countries and import facilities. Fluxys is ready to build the gas network of the future. They plan to progressively reconfigure their natural gas network in Belgium towards the future energy system. They have taken steps with Belgian industrial players and policymakers to identify the potential for hydrogen production and consumption and the infrastructure needed. The timing of the investments for new pipelines and repurposed pipelines will however depend on the evolution of natural gas demand and the uptake of hydrogen demand. Considering this and in line with the feedback received from the market, the first H2 infrastructure could be ready by mid-2026.

Bulgartransgaz EAD is a combined operator performing licensed activities of natural gas transmission and storage. The company operates 3 380 km high-pressure gas pipelines and the Chiren Underground Gas Storage facility.

Bulgaria has strategic geographic location and well-developed gas infrastructure. By implementation of the already completed and planned new projects, proved itself as an important factor in ensuring energy security and diversification of gas sources and routes for the region.

The company’s gas transmission system has interconnections with all neighbouring countries – Greece, North Macedonia, Romania, Serbia and Turkey. Bulgartransgaz EAD is continuously developing its infrastructure both for transmission and storage. The ongoing projects for the expansion of Chiren UGS, building new interconnectors, raising cross-border transmission capacities and developing the national transmission network are of utmost importance for the realisation of the Balkan Gas Hub concept.

Plinacro is the Croatian gas transmission system operator and operates more than 2,500 km of transmission pipelines. The Republic of Croatia has a well-developed gas transmission and distribution system. The length of the distribution system is over 18,000 km, supplying gas directly to more than 680,000 consumers in 19 out of 20 counties and the City of Zagreb (if indirect users supplied over the district heating system are taken into account the number of natural gas users is significantly higher). The gas transmission system is connected to the regional and European gas system via the interconnections with Hungary and Slovenia, while through the LNG terminal and evacuation pipelines it is connected to the global LNG market and it enables gas transmission towards the regional and European market.

Plinacro aims to remain an esteemed and leading infrastructural energy entity in the transmission business in the Republic of Croatia and an important strategic energy partner in the region and the European Union, which enables its users to meet their energy requirements in a transparent and socially and environmentally responsible manner.

Utilization of hydrogen and decarbonization of the Croatian and regional gas market will enable Plinacro and other gas market players to remain important part of the future EU low carbon energy society.

The Czech Republic’s gas TSO, NET4GAS, operates around 4,000 km of pipelines consisting of three major branches of double or even triple pipelines which serve for international transit – connecting Germany, Slovakia, and Poland – while also covering domestic demand. NET4GAS sees the gas infrastructure as an enabler of decarbonisation in the energy sector and expects to transport hydrogen (and other renewable or decarbonised gases) in the future.

Due to its geographical position, NET4GAS will remain an important transit TSO as it can transport hydrogen from an Eastern direction (e.g., from Ukraine via Slovakia), from a Southern direction (e.g., from North Africa via Italy and Austria and from Turkey and Greece via Romania, Hungary, and Slovakia) as well as from the North-West (e.g. Baltics and Northern Germany) to industry clusters in Southern Germany and further westwards.

The hydrogen strategy of the Czech Republic assumes that the Czech Republic will need to import hydrogen from abroad by repurposed pipelines to meet domestic hydrogen demand. Potential utilisation of hydrogen is expected in carbon-intensive and hard-to-abate industrial processes such as ammonia, cement, steel production or fuels and transportation. But also, in the power production and (district) heating sectors, there is an increased interest in hydrogen as an energy carrier.

Denmark has set out a 70% greenhouse gas emissions reduction target by 2030, and in December of 2021 the Danish government published its proposal for a Danish Power-to-X (PtX) strategy with an ambitious Danish capacity target of 4-6 GW electrolysis by 2030. Infrastructure is a large part of the proposal, and the government addresses this matter with ambitions to examine the regulatory barriers for the development of a hydrogen market and to support the export of hydrogen and PtX products by creating the framework for a hydrogen infrastructure that can eventually be linked to a common European hydrogen infrastructure. The strategy also mentions innovative activities such as offshore PtX production in relations to the development of the two Danish energy islands, which in the first phase will supply 5 GW of electricity from offshore wind, rising to at least 12 GW once fully developed.

Denmark’s electricity and gas TSO, Energinet, owns and operates a gas transmission pipeline grid of around 925 km, with cross border connections to Germany and Sweden. An expansion with the Baltic Pipe connecting Norway, Denmark with Poland will be in operation from 2022, expanding the pipeline grid to approximately 1,250 km. Energinet owns and operates two gas storages facilities, one cavern and one aquifer storage. A market dialogue with 19 actors was carried out in 2021 by Energinet and the Danish Energy Agency, indicating the need for access to a hydrogen infrastructure already before 2030 to support the several large-scale electrolysis projects that have been announced in Denmark, totalling around 6.5 GW of installed capacity by 2030. Energinet has initiated the process of evaluating a 93 km stretch of infrastructure considered eligible for repurposing to hydrogen transport, subject to successful completion of the prepared requalification and material testing program.

Estonia’s electricity and gas TSO, Elering, operates a pipeline grid of 977 km, including the subsea interconnector with Gasgrid Finland. When moving towards a carbon-neutral integrated energy system, Elering sees great value in hydrogen for providing the energy system with more flexibility - absorbing and fulfilling the renewable generations' intermittency and price volatility.

Estonia has set out a 70% greenhouse gas emissions reduction target by 2030, and in November 2022 the Estonian Government approved a law that set a 2030 goal of covering 65% of final energy consumption with renewable sources and producing Renewable electricity in the amount that would cover 100% of the electricity demand on an annual basis. Estonia has a rapid development of solar PV and onshore wind projects, that could fulfil the renewable electricity goal, in addition, the Estonian Government approved Estonian Maritime Spatial Plan that determined areas suitable for offshore wind energy development. The Offshore wind areas are planned to be auctioned in 2023.

The renewable energy potential far exceeds the projected Estonian electricity demand of ~15TWh in 2050. The offshore wind areas alone could accommodate up to 15GW of generation capacity that could produce ~60TWh of renewable electricity, which could be exported or converted into green hydrogen. Green hydrogen can decarbonise hard-to-abate industries in the Baltic Sea region, and provide needed flexibility and seasonal storage for the electricity system. Without green hydrogen production and new interconnections to large consumption centres, Estonian renewable energy production would not reach its potential.

As highlighted by recent years' energy prices, excessive reliance on imports and energy security concerns, increasing European energy self-reliance is of utmost importance. Tapping into local renewable energy potential and connecting the regions with excess energy to large Central European demand regions, would help to resolve energy price issues and increase European economies' resilience to external shocks.

Finland’s gas transmission system operator (TSO) Gasgrid Finland owns and operates a network in the south of Finland of 1,300km and a subsea interconnector into Estonia with Estonian gas and electricity TSO Elering.

Finland has an ambitious carbon neutrality target already for 2035. The demand for clean hydrogen in Finland could grow and scale rapidly in industry, considering the 2035 carbon neutrality target and the strong presence of steel, chemicals, and fuel production. Thus, hydrogen and power-to-X production has significant potential in Finland.

The Government of Finland adopted a resolution on hydrogen on 9 February 2023. Finland’s goal is to become the European leader in the hydrogen economy in the entire value chain. Finland has the capacity to produce at least ten per cent of the EU’s emissions-free hydrogen in 2030.

Finland has significant onshore and offshore wind potential. Fingrid Oyj (electricity TSO in Finland) has received 250 GWs of inquiries for wind power connections. In one of its scenarios, Fingrid is estimating 44 GW of wind power by 2035. Wind power is estimated to develop at a very cost-competitive price level in Finland providing significant opportunities for hydrogen production. In addition, district heating is common in Finland, which increases the competitiveness of hydrogen projects as there is the possibility to utilise heat from the electrolysis process for the production of district heating. Furthermore, land and water availability are factors supporting the competitiveness of hydrogen production in Finland adding to the large potential of hydrogen production in Finland.

The need for energy system integration is a key driver of the development of a hydrogen network which could support the development of a carbon-neutral energy system in Finland by providing intermediate energy storage and efficient transport of renewable energy from supply sources to the demand locations. It would also enable the creation of a hydrogen market connecting hydrogen producers and consumers. Later on, the national hydrogen network could be connected to hydrogen networks in other countries, connecting Finland with larger European hydrogen markets with an expected significant increase in hydrogen demand. This would enable hydrogen export and access to central European gas storage facilities.

France’s current gas network is operated by GRTgaz which operates over 32,000 kilometres of pipelines and Teréga, which operates more than 5,000 km of the network in the South-West part of France.

Hydrogen developments are taking place primarily in hydrogen basins that combine both significant decarbonisation needs generating a significant demand for hydrogen, as well as decarbonised hydrogen production capacities that will reach gigawatt capacities to cover this demand. When consulted in 2021 by GRTgaz and Teréga, most market players expressed the view that, in addition to the competitiveness of hydrogen supply, which is the key decision-making criterion, diversity and security of supply are essential. Access to storage is also essential to balance production and consumption, not only for short-term, daily or hourly needs but also for seasonal needs. As shown by industrial stakeholders in the study "The role of hydrogen transport and storage infrastructure: An opportunity for industrial competitiveness", infrastructure at the national level can have hydrogen clusters benefit from drastic price reductions and accelerate the scale-up of the vector.

It is to address this need that network operators have launched consultations with market players - open seasons - for the creation of transmission infrastructures open to all producers and consumers, for example in the hydrogen basins in Moselle (Mosahyc) and Alsace (Rhyn), in the Valenciennes region in connection with Belgium and the port of Dunkerque (Whyn), and in the port of Fos with a connection to the underground storage in Manosque (HYNFRAMED).

In line with the ambitions of REPower EU and in support of the competitiveness of the basins, the development of a hydrogen corridor between the Iberian Peninsula, France and Germany (H2Med), driven by the decision of the Portuguese, Spanish and French heads of state GRTgaz and Teréga develop a maritime pipeline between Barcelona and Marseille (BarMar). France and Germany have also affirmed their joint desire to extend H2Med to Germany and to exploit the potential for hydrogen storage by developing infrastructure in south-west France leading GRTgaz to develop HYFEN, a south-to-north backbone that will allow the interconnection of main industrial basins in particular around the regions of PACA, AURA and Grand Est.

In this context, Teréga is involved in trials around hydrogen storage and studying industrial applications in the Lacq region cluster. The company is deploying the HySoW project, a renewable and low-carbon hydrogen storage and transport infrastructure connected to the H2Med pipeline project, which will make it possible, by 2030, to interconnect the major industrial and mobility hubs of the Occitanie and Nouvelle-Aquitaine regions to the flows of hydrogen produced locally as well as to those coming from the south of Europe and from the Atlantic coast. The project will strengthen the security of the supply of the entire energy system by providing access to large-scale hydrogen storage facilities.

OGE, headquartered in Essen, operates the largest German gas transmission system spanning 12,000 kilometres. Two-thirds of natural gas consumed in Germany flow through OGE’s pipeline system, comprising about 100 compressor units and about 1100 exit points. With its OGE 2030+ strategy implemented in 2018, the company defined a new purpose, namely, to enable energy supply today and in the future energy mix. While dedicated to providing efficient and reliable transport services for natural gas, the main focus in business development today is to become a leading provider of infrastructure in a decarbonised energy system in Germany and Europe, re-purposing natural gas infrastructure for transporting pure hydrogen, securing international import routes for hydrogen and investigating the transport of CO2 are key areas of activity today.

ONTRAS Gastransport GmbH is a national gas transmission system operator in the European gas transport system based in Leipzig. ONTRAS operates Germany’s second-largest gas transmission system, with approximately 7,700 km of pipelines and about 450 interconnection points. ONTRAS links the interests of transport customers, traders, regional network operators and producers of renewable and decarbonised gases. Since 2013, they have been transporting green hydrogen from two power-to-gas plants, as an admixture in their network. In the Bad Lauchstädt Energy Park real laboratory, they will be converting approx. 20 kilometres of natural gas pipeline to pure hydrogen by 2024. Moreover, with their IPCEI projects, they are driving forward the development of a hydrogen economy in Eastern Germany.

GASCADE Gastransport GmbH independently operates a gas pipeline network throughout Germany. Based in Kassel, the company offers its customers state-of-the-art and competitive transport services for hydrogen and other gases in the heart of Europe via the company's own high-pressure pipeline network, which is around 3,200 kilometres long. GASCADE is pursuing the goal of converting its transmission network to the transport of hydrogen and is therefore active in several specific hydrogen projects. In addition to a large onshore north-south connection (Project Flow - making hydrogen happen), GASCADE also develops offshore projects in the North Sea (Aqua Ductus) and in the Baltic Sea (Interconnector Bornholm-Lubmin).

As a result of Germany’s federal election in September 2021, the new Federal Government consists of a coalition between the Social Democrats (SPD), the Greens and the Free Democrats (FDP). The new government coalition intends to pursue the goal of climate neutrality by 2045 set by the previous Government. In its coalition treaty, the Government proclaims a technology-neutral approach to energy policy that includes cross-sector instruments aimed at achieving these targets.

Hydrogen features prominently in both, the Government’s industrial policy and its energy policy strategy. For the first half of 2023, the Government has announced the overhaul of the National Hydrogen Strategy, published by the previous government coalition in 2020. Hydrogen is considered alongside electricity as a prerequisite for Europe’s ability to act and compete in the 21^st century. Accordingly, the hydrogen economy is to be ramped up quickly and comprehensively with the necessary resources.

The primary focus is set on both domestic green hydrogen production, for which the government has announced to raise the target for installed capacity from 5 to 10 GW by 2030, and on hydrogen imports from the EU and third countries. Blue hydrogen is also considered an option. Appropriate hydrogen networks and import structures are to be created in a timely also within international co-operations. Moreover, the new Government plans to accelerate approval procedures. It considers gas-fired power plants as a prerequisite for system stability in the transition to a climate-neutral economy and recognises the need for additional capacity if H2-ready.

The German TSOs are continuously developing the German H2 grid and demonstrate the feasibility to establish a cost-efficient and reliable hydrogen grid in Germany.

National Gas Transmission owns and operates the National Transmission System in Great Britain, a network consisting of approximately 7,630km of pipelines. The UK government has targeted at least 10GW hydrogen production capacity and 40 GW offshore wind by 2030, with four low carbon industrial clusters established. A dedicated hydrogen transmission system is expected to emerge in Great Britain (the island consisting of England, Scotland and Wales) initially through the phased repurposing of existing natural gas transmission pipelines to join GB’s largest industrial clusters (Grangemouth, Teesside, Humberside, Merseyside and South Wales). This will provide resilience to the clusters and could support the conversion of some industries outside of these clusters.

The initial development of the emerging hydrogen backbone in GB aims to utilise and repurpose pipelines to transport hydrogen, whilst still maintaining the security of supply on the existing natural gas transmission system. Further conversion of remaining pipelines will likely develop at a later stage and may require small sections of new pipelines to enable the transition.

DESFA is Greece’s gas TSO and operates a relatively new network of 1,456km. Greece’s excellent conditions for both wind and solar power would allow the complete phase-out of coal-based power plants by 2028 or even earlier. There are plans to increase the installed capacity of Wind Power to 28,6 GW and Solar PV to  19,8 GW, as stated in the latest draft proposal for the revision of its NECP. The current hydrogen production capacity (captive) in Greece is approximately 150 thousand tons/y, all coming from fossil fuels, covering a demand of 5 TWh (mostly from refineries and ammonia production industries).

The three main industrial clusters, in Athens, Corinth and Thessaloniki, are potential large demand centres of hydrogen. In addition, according to the recently developed Master Plan for the decarbonisation of the lignite production area of Western Macedonia, there is a large potential for hydrogen production in the region. This potential stems from the expected deployment of large-scale PV plants, along with the possibility of the use of hydrogen locally or its transportation through the new hydrogen-ready pipeline DESFA is deploying in the region.

At the same time, several energy players in the country are planning their actions towards the production of green hydrogen, enhancing the efforts towards the “greening” of the Greek energy sector.

It is obvious that a Hydrogen Backbone will be needed to reconcile substantial differences in hydrogen supply potential and hydrogen demand across the country. The backbone will also serve to connect the national hydrogen system to neighbouring regions, thus providing security of supply and market integration.

FGSZ, Hungary’s gas grid operator, operates a mature network of 5,874 km. The network is partially for domestic use while playing a recently changed transit role from Ukraine to south-eastern Europe. The flows reversed partially and decreased slightly with the opening of the LNG terminal on the Croatian island Krk in 2021 and with the gradual opening of the new Balkan routes. Therefore, part of the network might become available at an early stage to be repurposed for green hydrogen transport from Ukraine into the coal-based regions in south-eastern Europe and to the West via Slovenia.

Hungary has set a carbon neutrality target for 2050 mainly focusing on the development of solar PV and nuclear power generation capacities. The possible lifecycle prolongation of the already existing Paks 1 nuclear power plant, the construction of the second nuclear plant and the targeted 12 GW solar PV capacity (by 2030) could lead to a fluctuating oversupply of renewable electricity. Green hydrogen generation could play a strategic role by offering flexibility services and integrating renewable capacities into the electricity grid while decarbonizing hard-to-abate sectors as well (such as refining, fertilizer and petrochemical).

Gas Networks Ireland (GNI) operates a network in Ireland of 2,477 km of transmission pipelines and 12,044 km of distribution and 2 subsea interconnectors from Moffat in Great Britain to just north of Dublin on Ireland’s east coast. Ireland has 30GW of offshore wind projects already in the pipeline and plans 5GW²⁰ of offshore wind to be operational by 2030. Large amounts of intermittent offshore wind production, particularly off the Atlantic west coast could result in electricity grid congestion and curtailment for a country of Irelands’ scale.

Green hydrogen production and integration with the gas network could provide a way to maximise Irelands wind energy potential, as a store of energy, as an alternative to imported hydrogen and potentially in peak production periods enabling hydrogen export. While scale hydrogen from offshore wind in Ireland is still developing, Ireland could import hydrogen, initially for the power sector providing zero carbon support to intermittent renewables and later for transport, industry and heating. This could be achieved mainly through repurposed existing gas pipeline network, and possibly some new bespoke hydrogen pipelines.

Snam owns and operates the National Transmission System in Italy, with over 32.500 km of transportation network in use and 17 bcm of storage capacity. The Italian guidelines for the national hydrogen strategy foresee that by 2030 hydrogen could make up 2% of Italy’s final energy demand. This demand will be mainly concentrated in industrial clusters located in the North and in some areas of the South. The Italian national backbone will connect these clusters with green production facilities in the Centre and South and blue production facilities that may emerge in the North. There is also the possibility of tapping into additional renewable capacity at favourable cost from North Africa.

The extended infrastructure will help the country in meeting the target set by the national strategy and deliver green and low carbon hydrogen to industrial clusters in the North of the country (Pianura Padana) and drive the creation of other hydrogen valleys in the South (Sicily, Puglia). Most of these developments will likely happen in conjunction with a switch from fossil sources to hydrogen, thus allowing the use retrofitted existing natural gas pipelines and pivoting on the availability of parallel routes.

As the industry scales up and costs fall, the grid will be extended in order to connect with other markets (Austria, Germany, Eastern Europe) and maximize the corridor role Italy may play in supplying Europe with cost-competitive green hydrogen coming from North Africa.

Conexus Baltic Grid (Conexus) is the national unified natural gas transmission system and storage operator in Latvia, managing an 1190 km long gas pipeline connection system. The transmission pipelines are composed of regional gas pipelines and cross-border gas pipelines which ensure gas transit to neighbouring countries, and their branches. Conexus also manages the Inčukalns underground gas storage, which is the only functional storage in the Baltic countries, ensuring the stability and security of the regional gas supply. During the summer season, when consumption of natural gas in the region is several times lower than in the heating season, natural gas is injected into the storage, so that in the heating season it could be supplied to customers in Latvia, Estonia, Lithuania, Finland and beyond. The capacity of Inčukalns UGS is around 24 TWh.

Latvia has not yet developed a hydrogen strategy, there is also no official vision regarding hydrogen development published. National Climate and Energy Plan covering 2021-2030 does not include specific objectives or targets for the production or use of hydrogen, nor hydrogen-specific policies and measures, but it will be updated in 2023. Hydrogen applications are considered from a long-term perspective.

The energy systems of the Baltic states and Finland is already very interconnected, therefore looking at the EHB from a more area-wide point of view makes most sense.

Amber Grid is the operator of the Lithuanian gas transmission system. The company operates 2285 km of high-pressure gas pipelines, gas distribution stations, and 2 gas compressor stations. Amber Grid system is connected to gas transmission systems of 4 other countries and the Klaipeda LNG terminal.

Lithuania's climate change mitigation policy goal until 2050 is to reduce greenhouse gas emissions by at least 80% in the energy sector. Green hydrogen energy will help to balance the energy system and replace fossil fuels in the future. Adaptation of a gas transportation system and construction of infrastructure for the transportation of pure hydrogen is one of the measures envisaged to enable the transportation of hydrogen from its production sites in the region to consumption sites, both domestically and for import and export in the future. Fertilizer producers, oil refining and transport sectors are expected to be the main consumers of hydrogen in Lithuania.

Creos Luxembourg, an electricity and gas transmission and distribution system operator, operates a gas network of 2.175 km with interconnections to the Belgian, French and German gas system. The Luxembourg gas network supplies industrial customers located mainly in the south of Luxembourg as well as residential customers.

In the longer term, apart from the expected development of hydrogen demand in Luxembourg mainly for the needs of industry, transport and the heating sector, Luxembourg could also serve as transit country for hydrogen and thus accelerate the decarbonization of the energy sector.

Infrastructure company Gasunie operates and owns a gas network of approximately 16,000 kilometres in the Netherlands and North-Western Germany. On June 2021 Gasunie received a formal mandate from the Ministry of Economic Affairs and Climate Policy to develop a national hydrogen transport network; the ‘Hydrogen Network Netherlands’. The accompanying Hyway27 study showed that this network will consist of mostly repurposed existing gas pipelines as these become available due to declining demand for natural gas. The first parts of this Dutch national backbone could be in place as early as 2027. The Ministry of Economic Affairs and Climate Policy is currently analysing the exact roll-out (phasing) of the backbone. Gasunie further develops the project Hyperlink, a hydrogen backbone in north-western Germany.

Thanks to this hydrogen infrastructure, the Netherlands and northern Germany can be the market leaders in Europe for the global hydrogen market, just as they are now for natural gas. This Dutch national backbone connects the five large industrial hubs with each other, with storage and with import/export options. This will enable major companies to wean themselves off natural gas, massively reduce their carbon footprint and maintain jobs, their export strength and innovation capacity for the Dutch economy.

Gassco is the independent system operator (ISO) for the integrated system for transporting gas from the Norwegian continental shelf to other European countries. This gas transport system consists of 9000 km of subsea pipelines, 3 gas processing plants in Norway, offshore platforms and receiving terminals in the UK, France, Belgium and Germany.

Gassco’s operatorship confers overall responsibility for running the infrastructure on behalf of the owners to ensure safe and efficient gas transport to millions of people. Gassco is also the architect for developing the future gas infrastructure on the Norwegian continental shelf.

REN - Redes Energéticas Nacionais, owns, under a regulated concession, and operates assets in two major business areas:

• The transmission of very high voltage electricity and overall technical management of the National Electricity System;
• The transmission of high-pressure gas and overall technical management of the National Gas System, the reception, storage and regasification of LNG, at Sines Terminal and the underground storage at Carriço Salt Caverns UGS

Additionally, besides a business area in telecommunications and as a shareholder in some international utility businesses, REN owns Portgás, which focuses its activity on the development and exploitation of the largest natural gas distribution network on the north coast of Portugal (about 5,493 kilometres).

Regarding the national public policy status, the Portuguese government has developed a national roadmap for Hydrogen (EN-H2) deployment as a key element of the energy transition towards carbon neutrality and focusing on achieving around 2GW of installed capacity, as well as decarbonise industry and injecting up to 15% of Hydrogen in the natural gas system. Additionally, Portugal has published legislation to convert the previous natural gas system to a Gas System, assuming that the assets must accommodate increasing mixtures of renewable gases and natural gas, converging to the development of a 100% Hydrogen system.

At the first stage (until 2030), it is expected that Hydrogen will be transported cross-country in the current gas infrastructure, blended with natural gas. Integrated (transmission, compression and storage) dedicated Hydrogen systems (Hydrogen valleys) are also expected to be developed in the main Portuguese industrial clusters, namely in the North (a large amount of chemical industry – which is already symbiotic) and in the South (Refinery, chemical and fuels).

Further conversion for 100% Hydrogen of current natural gas grid pipelines will be developed at a later stage depending on H2 market evolution. The in-between scenario would consist of some areas with a 100% Hydrogen network, while the remaining will have Hydrogen blended with natural gas.

In a future with 100% Hydrogen, a large part of the natural gas network will be repurposed.

In December 2022, in Alicante, Spain, the heads of state of Portugal, Spain and France together with the transmission system operators REN, Enagás, GRTgaz and Teréga, reached an agreement on the implementation of an undertaking to support the decarbonisation of European industry: the H2MED hydrogen project, which Germany joined at the end of January 2023. This project is an answer to EC RepowerEU communication

It is envisaged that H2MED acts as a corridor for green hydrogen, running from the Iberian Peninsula to the European supply network. Being a pure hydrogen project H2MED can be entitled to EU funds financing within the scope of the Projects of Common Interest, IPCEI, of the European Commission.

Portugal has also a storage potential (salt caverns) at the cross-section of the two main current natural gas backbone lines, which can be scaled up for Hydrogen storage.

Through a government resolution (RCM nr. 82/2022, dated 27th September 2022), the Portuguese government the UGS Operator, REN, to promote, within the scope of its regulated activities, the necessary steps to ensure the reinforcement of the storage capacity installed in Portugal in at least two additional cavities, namely through the use of its infrastructures, in order to:

a) Obtain a complementary amount of underground storage capacity in the Carriço infrastructures exceeding 1.2 TWh;

b) Allow accommodating in this underground storage all the security reserves or others that may be defined.

This complementary underground storage capacity is hydrogen ready.

SNTGN Transgaz SA, as the operator of the National Gas Transmission System (NTS) is preoccupied with the potential of integrating hydrogen from renewable and low-carbon sources into the natural gas transmission system in order to comply with the provisions of the applicable European directives and the European Green Deal.

In recent years, hydrogen has become an increasingly attractive candidate for decarbonising the energy sector in line with the EU’s climate targets. The EU Hydrogen strategy and the recent draft of Hydrogen and Decarbonised Gas Package set out a new agenda for clean energy investments.

Hydrogen can support the decarbonisation of industry, transport, power generation and buildings across Europe. To ensure that hydrogen is developed to its full potential, there must be a defined perspective towards the development of a well-interconnected European hydrogen market over time.

Large-scale hydrogen consumption will require a well-developed hydrogen transport infrastructure based on a “European Hydrogen Backbone”: a vision for a truly European approach, connecting hydrogen demand with supply from North to South and West to East. The proposed Romanian Hydrogen backbone contributes to this purpose.

EUSTREAM’s transport system provides an important energy link between the East and the West and the North and the South. The robust system of parallel lines is connected to the primary transmission routes in Ukraine, Hungary, Austria, the Czech Republic and Poland.

Today, Slovakia is mainly a transit country for natural gas. In the future, a similar role is foreseen for large amounts of green hydrogen. EUSTREAM’s system lies between the anticipated hydrogen productions centers in the CEE, including Ukraine, and the consumption in Germany and other Western European countries. Its unique geographical position and developed infrastructure makes it well positioned to become an important hydrogen entry gate for European markets.

To connect future markets with production centers, EUSTREAM plans to dedicate one or more of its main transit pipelines only for transport of 100% hydrogen. The modernized corridor of parallel pipelines will allow the combined transport of natural gas and pure hydrogen as soon as there is enough new hydrogen production capacities operational. The large diameter pipelines would provide a cost-efficient way of transporting hydrogen in the east-west direction as well as facilitate hydrogen flows from south further towards Czech Republic and Germany.

Plinovodi, the TSO of Slovenia, operates a network of 1,195 km, for domestic use while also playing a transit role from Austria to Croatia and Italy. For both using a doubled main backbone from its capital Ljubljana into the east which then stretches north into GCA’s and TAG network in Austria. With the LNG terminal in Croatia on the Krk Island, up and running since the beginning of 2021, the new planned interconnection with Hungary and other changes, the transit role will change. As a result, one of the pipelines of the main backbone could be repurposed for hydrogen.

Slovenia has nuclear energy and Solar PV installation is expected to increase. About one third of its electricity comes from coal. The coal fired power plant could be replaced in the future by a gas-fired power plant, thus providing another possible opportunity for the hydrogen.

A hydrogen network could be used to serve industry users and power plants with available green hydrogen via Austrian and FGSZ’s network or with North African green hydrogen via SNAM's network, as well as from domestic production. While the hydrogen network could also play a transit role, connecting sources of demand and supply, and integrating the energy systems in Italy, Austria, Hungary and Croatia.

Background

Enagás operates an extensive gas transmission network in Spain that comprises over 11,000 km of gas pipelines. This network has six international connections: two with North Africa via Tarifa and Almeria (linking with the Maghreb and Medgaz gas pipelines respectively); two with Portugal via Badajoz and Tuy; and another two with France via Irun and Larrau.

The Spanish Hydrogen Roadmap recognises that renewable hydrogen is a key sustainable solution for the decarbonisation and the development of a high value-added green economy.

The vision for a hydrogen pipeline network in Spain is currently based on a high-level analysis, and it would enable the coexistence of both natural gas and hydrogen for a defined period, optimising the use of current infrastructure to serve potential demand in industry and guaranteeing security of supply.

At the same time the backbone aims to harness the significant potential of Spain´s solar PV and onshore wind resources, which could enable the exportation of green hydrogen to other European countries, coherent with the Iberian Hydrogen Corridor included in the REPowerEU plan. Hereby, also ensuring the role of Spain as a transit country, with pipeline infrastructure to transport low cost hydrogen produced in North Africa to demand centres in Central and Western Europe.

Hydrogen infrastructure development

By 2030, the proposed hydrogen network will connect the industrial clusters along the Mediterranean coast and in the north of Spain, where two underground storage projects could also link to the network. The network will also comprise pipeline axis along the “Via de la Plata” and Ebro Valley to harness the potential for hydrogen production from the rich renewable resources of these areas.

Later, the development of the network will guarantee cohesion between the different demand regions, and also integrate the multiple supply points that will be distributed across the country.

Spain’s long-term ambition is to be one of the main hydrogen suppliers in Europe, building on its significant solar PV, wind and hybrid potential to produce green hydrogen. The national backbone will enable this by connecting with France through a new marine pipeline route from Barcelona to Marseille by 2030, and later by converting the existing connections via Irún and Larrau to hydrogen. A new connection between Portugal and Zamora (2030) is also planned.

The TSOs of Spain, France and Portugal, in line with the mandate of the governments of the three countries, which have also been joined by Germany, are working to promote the H2Med project connecting the Iberian Peninsula to France and on to Central Europe. This was submitted to the call for Projects of Common Interest (PCI) of the European Union in December 2022.

H2Med will have a capacity to transport up to 2 million tonnes per year of renewable hydrogen, which represents 10% of the forecast consumption in Europe in 2030, according to REPowerEU.

Connections to North Africa could be made by 2040 to complement domestic supply with imports from the region therefore further increasing export potential to centres of European demand.

The Swedish climate target is to reach net-zero emissions of greenhouse gases by 2045. To reach this goal, reliable supply, and use of low-cost, green hydrogen in industry and heavy-duty vehicles is pointed out as key enabling solutions, but also as a focus for new industrial initiatives creating innovations, new jobs and export.

The national hydrogen strategy, presented by the Swedish Energy Agency in Nov 2021, proposes planning goals of at least 5 GW and 15 GW installed electrolysis capacity by 2030 and 2045, respectively. This alongside with the necessary build-out of renewable electricity production (mainly on/offshore wind parks) and transmission solutions. The creation of a regulation with a revenue framework for hydrogen pipelines is suggested to be in place by 2023.

The visionary and ambitious scenario of a dedicated hydrogen backbone will support and accelerate the targeted decarbonisation and the development of the Swedish hydrogen economy, on the same time as additional robustness to the entire energy system is obtained. The backbone would aid the transmission of energy from north to south creating a sustainable, flexible, and balanced energy system.

During the late 2020s, the Swedish backbone is envisaged to emerge on the coastal regions in the south-west, mid-east and north of the country in the form of regional hydrogen networks connecting hydrogen supply with demand at transforming existing and new established process industries (mining, steel, fertilizer, chemical and/or refinery, e-fuel). Given the absence of parallel methane infrastructure available for repurposing, dedicated hydrogen pipelines will have to be newly built.

FluxSwiss markets approximately 90% of the Transitgas pipeline capacity connecting French, German and Italian gas markets. FluxSwiss offers capacity at the three border points Wallbach, Oltingue and Passo Griess. As part of the Fluxys Group, FluxSwiss is ready to participate in building the gas network of the future.

Switzerland aims to restructure the Swiss energy system by 2050. To do so a significant increase in using renewable energy and reduction of energyrelated CO₂ emissions will be needed. In view of the above a hydrogen strategy will be presented by the Swiss Federal Office of Energy by end of 2022.