Ontras and H2 Energy Europe Sign MOU to Advance Hydrogen Infrastructure for Industrial Customers

Zurich, 5 September 2024 - H2 Energy Europe AG, a developer of large-scale green hydrogen ecosystems, and ONTRAS Gastransport GmbH (ONTRAS), a German transmission system operator (TSO), have signed a Memorandum of Understanding (MoU) to define the technical and commercial measures needed to establish a green hydrogen transport network within the European Hydrogen Backbone (EHB) initiative.

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The collaboration aims to explore ways to transport green hydrogen from H2 Energy Europe's planned 1GW production facility in Esbjerg, Denmark, via the proposed German hydrogen core network and the ONTRAS Green Octopus Mitteldeutschland (GO!) pipeline project to German industrial areas around Salzgitter, Berlin, Eisenhüttenstadt, Magdeburg and Leipzig-Halle. Hydrogen is expected to play an important role in the decarbonisation of hard-to-abate industries including chemical manufacturing, steel production and power generation. 

ONTRAS's comprehensive experience in transportation of gaseous energy will play a pivotal role in establishing a hydrogen pipeline network for Germany and Europe. As a combined approach, ONTRAS and the other German TSOs have proposed a hydrogen core network which will provide the necessary infrastructure for the efficient transportation of hydrogen within and through Germany. ONTRAS is currently repurposing Germany's first pipeline for the transport of green hydrogen. This involves analysing the pipeline network for suitability, planning new sections or repurposing existing ones, and coordinating with other operators to establish a comprehensive hydrogen backbone. 

ONTRAS and H2 Energy Europe will determine the technical and commercial transport requirements, as well as potential exit points within the new hydrogen network. Additionally, both companies will prioritise stringent security measures to ensure the safe and reliable long-term supply of hydrogen, adhering to the industry standards and regulatory requirements. Once these system requirements have been defined, the goal will be for the two companies to enter into a long-term capacity contract. 

"This agreement perfectly symbolises our dedication to creating a comprehensive hydrogen backbone on a European level. Hard-to-abate industries will be able to substantially reduce their carbon emissions using renewable hydrogen delivered to them through our network from sources such as this ambitious project in Denmark," said Ralph Bahke, ONTRAS Managing Director Controlling and Development. 

Cyril Cabanes, CEO of H2 Energy Europe, commented: "Our collaboration with ONTRAS should enable us to expand the hydrogen infrastructure essential for meeting the growing demand for sustainable energy solutions by industry. By linking our planned 1GW green hydrogen production project in Denmark with ONTRAS's robust gas transport network in Germany we plan to contribute to the development of an integrated, reliable hydrogen economy that spans across Europe." 

This strategic initiative aligns with Germany's national goals of establishing a resilient hydrogen infrastructure that integrates sources of domestic and international production. According to the hydrogen import strategy published by the Federal Ministry for Economic Affairs and Climate Action in July, the Federal Government of Germany anticipates a significant rise in hydrogen demand by 2030, estimating demand to reach 95-130 TWh per year, with 50-70 % of supply expected to be met through imports. The agreement between ONTRAS and H2 Energy Europe supports these objectives by enabling hydrogen imports via cost efficient pipelines from Denmark to Germany. 

ONTRAS is part of the European Hydrogen Backbone (EHB) initiative which consists of a group of thirty-three energy infrastructure operators, united through a shared vision of a climate-neutral Europe enabled by a thriving renewable and low-carbon hydrogen market. The EHB initiative aims to accelerate Europe's decarbonisation journey by defining the critical role of hydrogen infrastructure - based on existing and new pipelines - in enabling the development of a competitive, liquid, pan-European renewable and low-carbon hydrogen market. Furthermore, ONTRAS, together with five further European TSOs, is part of the Nordic-Baltic Hydrogen Corridor (NBHC) which aims to transport renewable hydrogen from production sites in Finland through the Baltics, Poland and Germany to the respective industrial customers.

About H2 Energy Europe

In 2020, Trafigura, a global leader in the commodities industry, announced its investment in H2 Energy, forming a joint venture, H2 Energy Europe, to develop large-scale green hydrogen ecosystems across Europe. In October 2023, Trafigura became the majority owner of H2 Energy Europe. Major planned projects include a 1GW green hydrogen initiative in Esbjerg, Denmark, converting offshore wind power, and a 20MW green hydrogen project in Milford Haven, South Wales. H2 Energy Europe is also advancing a network of hydrogen filling stations along key transport routes in Germany as part of its strategy to build a comprehensive European green hydrogen ecosystem. 

Visit: h2eeurope.com  

About ONTRAS Gastransport GmbH

An independent transmission system operator, ONTRAS operates the 7,700 km long gas transmission system in eastern Germany and is responsible for the reliable and efficient transport of gaseous energy. We are actively shaping the development of a German hydrogen network - integrated into the European hydrogen infrastructure. With our “ONTRAS hydrogen starter network” as part of the Germany-wide H2 core network, we are laying the foundation for a nationwide hydrogen supply in eastern and central Germany. Our goal is an efficient transport network that optimally connects producers, storage facilities and consumers of hydrogen and enables access to import points and storage facilities.

Visit: www.ontras.com/en