The Opportunity Costs of Germany’s Hydrogen Backbone - CleanTechnica

The article from CleanTechnica discusses the significant opportunity costs associated with Germany’s investment in its hydrogen backbone pipeline infrastructure. Germany has completed and pressurized about 400 km of hydrogen pipeline, yet there are no connected suppliers or contracted customers, meaning no hydrogen is currently flowing to paying users. This situation reflects a broader European strategy of building hydrogen infrastructure ahead of demand in the hope that demand will subsequently materialize. However, the article highlights that this approach results in substantial capital being tied up in assets that do not yet deliver usable energy outcomes. Converting existing natural gas pipelines to hydrogen service is complex and costly, involving detailed inspections for material compatibility, replacement of valves and seals, installation of internal linings to prevent hydrogen leakage, and major modifications to compressor stations. These technical requirements drive up costs significantly, with estimates suggesting around €2 million per km for conversion, implying that the 400 km segment alone could cost between €0.8 billion and €0.9 billion. This large expenditure is primarily for