CleanTechnica•about 1 month ago
Pressurized Steel, Missing Demand: Germany’s Hydrogen Backbone In Energy Flows
Key Takeaway
The German hydrogen backbone project highlights the risks of policy-driven infrastructure development without a clear economic case, posing potential challenges and uncertainties for developers and large power consumers regarding future energy costs and market demand.
AI Summary
- •Germany is actively constructing a hydrogen backbone (physical steel pipelines) despite claims of missing demand and a lack of clear customers or suppliers, implying significant infrastructure investment.
- •The article suggests this infrastructure is being built for an energy system that may not need it, raising concerns about potential stranded assets, inefficient capital allocation, and future cost burdens on the energy system.
- •The project is 'defended as inevitable,' indicating strong policy or governmental commitment, which could lead to future mandates or subsidies influencing hydrogen market development for developers and large loads.
- •Developers should exercise caution regarding hydrogen production or consumption investments without robust, economically viable demand signals, while large power consumers should monitor potential policy-driven hydrogen mandates or associated infrastructure costs.
Topics
emissionsfinancinginterconnectpolicytransmission
Article Content
The German hydrogen backbone without customers or suppliers—a pipeline from nowhere to nowhere—is real steel in the ground, pressurized and defended as inevitable, yet it is being built for an energy system that does not need it. That claim sounds provocative until the energy flows are laid out in full. ... [continued] The post Pressurized Steel, Missing Demand: Germany’s Hydrogen Backbone In Energy Flows appeared first on CleanTechnica .