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KfW to provide €24bn loan for hydrogen network development grant to bridge the gap between network operators’ high investment costs and the initially low revenues from network charges

KfW Development Bank has offered €24 billion ($25.2 billion). The 9,040km link, to be completed by 2032, will see existing natural gas pipelines repurposed and new hydrogen pipelines built. Hydrogen to start to flow in pipelines in Germany in 2025. The German national hydrogen strategy is approved by the Federal Network Agency

KfW Development Bank has offered €24 billion ($25.2 billion) grant to bridge the gap between network operators’ high investment costs and the initially low revenues from network charges

KfW’s loan will finance an amortization account to offset deficits, with surplus revenue repaying the loan once network fees exceed costs

The network will repurpose existing gas pipelines and construct new hydrogen lines, connecting production, import sites, and industrial hubs. The first sections are set to launch next year

Integrating potential hydrogen production sites and connecting key industrial centres will enable the industrial use of hydrogen as a climate-neutral energy source. The successful switch to hydrogen is a critical factor, especially for energy-intensive industries