Natural gas: still an important energy source for heating homes
There are three reasons why natural gas is still indispensable at present:
- Due to the volatile nature of electricity generation from renewable energies such as wind and solar power, natural gas guarantees security of supply. Gas-fired power stations are able to provide electricity flexibly and thus support the integration of renewable energies. They secure the base load and stabilise the energy supply – especially at times when the sun and wind do not provide sufficient energy.
- At the same time, natural gas is an indispensable transitional energy source, replacing emission-intensive coal in the short term and making European energy supply more climate-friendly in the medium term.
- Furthermore, natural gas remains an important factor for the competitiveness of Germany as an industrial location. The current geopolitical tensions have highlighted the urgency of a diversified and resilient energy supply.
Our CH4 pipeline projects
With our 12,000-kilometre natural gas network, we at OGE make a significant contribution to security of supply. We are aware of this responsibility, which is why we are continuously modernising and expanding our pipeline infrastructure.
In just nine months, OGE connected the Wilhelmshaven LNG terminal to the German natural gas network via the Wilhelmshaven connection pipeline (WAL). Now the north-south connections need to be expanded, such as the EWA (Etzel-Wardenburg) and the WAD (Wardenburg-Drohne), which are crucial for connecting new gas-fired power plants and integrating the Wilhelmshaven LNG site into the German network.
EWA
The EWA, with a length of 60 km, is the first section of the Etzel–Wardenburg–Drohne supply pipeline. It connects the gas storage facility in Etzel with Wardenburg and transports natural gas from the Wilhelmshaven LNG terminal to the German long-distance gas network. We completed the final weld seam at the beginning of November.
WAD
The 90 km long WAD connects directly to the EWA and runs from Wardenburg to Drohne in North Rhine-Westphalia. This second section of the overall project is intended to further increase transport capacities and is scheduled for completion as early as next year.
TENP III
Another north-south connection that OGE has completed is the renewal of TENP III, the Trans-European Natural Gas Pipeline in Baden-Württemberg. The new sections have been in operation since 11 July, replacing ageing sections of the pipeline. This will guarantee safe transport for decades to come. In addition, all new pipelines are future-proof: they are already H2-ready and can also transport hydrogen.
What is now needed from politics
Reliable regulatory framework and attractive financing conditions
The results of the NEST process give rise to fears that the regulatory framework will be significantly tightened by the Federal Network Agency. This has serious financial implications for the operation of natural gas networks. In view of the upcoming transformation tasks and the associated investments, austerity measures are counterproductive.
In order to promote investment in the targeted development and expansion of infrastructure, an attractive and reliable regulatory framework is needed with an appropriate return on equity and a realistic efficiency comparison. Existing assets should not be taken out of service overhastily.
Security of supply through storage
Storage facilities are central to security of supply and play an important role in the energy system. They provide the necessary power even at peak consumption, which requires sufficient fill levels in winter. The market can basically fulfil this task, but a strategic reserve is still useful to ensure reliable supply over longer periods.
LNG as a diversified energy source for a German supply strategy
LNG imports must be a central component of German energy policy in order to ensure security of supply and price stability. They enable an independent, diversified supply without ties to individual pipelines. The example of the Wilhelmshaven connection pipeline (WAL) shows that Germany can respond promptly to crises if the relevant permits are granted quickly. This pace must serve as a model for the further expansion of LNG infrastructure and the transition to greenhouse gas-neutral technologies.
One year of the hydrogen core network and the first pipeline has already been built
Hydrogen plays a key role in the decarbonisation of industry, the energy sector, heat supply and mobility. It is crucial to rapidly develop the hydrogen infrastructure in order to gradually replace fossil natural gas with renewable or low-carbon gases. This is the only way to build a climate-neutral future and secure the competitiveness of the business sector at the same time. The approval of the hydrogen core network in autumn 2024 marked an important milestone. Since then, OGE has been building and converting hydrogen pipelines and will commission the first ones at the end of 2025. This marks the beginning of the hydrogen age.
Insight into our H2 pipeline construction projects
From the North Sea to the Ruhr region: Wilhelmshaven coastline and North Sea-Ruhr link
The Wilhelmshaven coastline (WKL) and the North Sea-Ruhr Link (NRL) form the central transport route for hydrogen from the North Sea coast to north-western Germany.
Both pipeline projects connect the northern import corridor with national producers and industrial customers along the route. In doing so, they establish the basis for a future-proof, efficient and sustainable hydrogen infrastructure in Germany.
The North Sea-Ruhr Link comprises several sections (NRL I–IV), which will be implemented in stages and connected to existing energy infrastructures.
The Wilhelmshaven Coastal Line (WKL – H2) runs for around 12 kilometres from Wilhelmshaven North to Wilhelmshaven South, mainly through industrial areas, and connects important infrastructure in the northern import corridor with national producers and consumers. Construction is scheduled to begin in the fourth quarter of 2026, with commissioning planned for the end of 2027.
NRL I is the first of four pipeline sections of the North Sea-Ruhr Link. The approximately 21-kilometre-long pipeline runs largely parallel to the Wilhelmshaven connection pipeline (WAL) and connects the Wilhelmshaven coastline with Dykhausen. Instead of the WAL, which transports natural gas, the NRL will secure the supply of hydrogen. This section is scheduled to go into operation by the end of 2027. This will once again make Wilhelmshaven a central energy hub.
The NRL III runs for around 122 kilometres from Bunde (Lower Saxony) to Wettringen (North Rhine-Westphalia), connecting the northern import corridors with industrial consumption centres in western Germany. Construction is scheduled to begin in the third quarter of 2026, with commissioning planned for the end of 2027.
NRL IV connects the northern import corridor with national hydrogen producers and consumers along the route. The planned 22-kilometre pipeline runs from Emden to Rysum (Lower Saxony) and is scheduled to be commissioned by the end of 2029. NRL IV will thus contribute to the complete connection of the northern German coastal regions to the hydrogen core network.
Hydrogen pipelines in the Ruhr area – connection to the industrial heart of Germany
The HEp, DoMa and DoHa projects are key components in the development of the German hydrogen core network in the Ruhr area. Together, they create a high-performance connection between the hydrogen storage facilities in Epe, the existing transport corridors of the GET-H₂ network and the industrial consumption centres in Marl and Duisburg.
In doing so, they are making a decisive contribution to the transformation of energy supply and, in particular, supporting the use of climate-neutral hydrogen in energy-intensive industries such as chemical and steel production.
The pipeline from Heek to Epe (HEp) in the district of Borken is scheduled to go into operation in 2025. This 11-kilometre pipeline will connect the underground hydrogen storage facilities in Epe with the GET-H₂ network.
The DoMa project, between Dorsten and Marl in the district of Recklinghausen, will secure the hydrogen supply for the Marl Chemical Park – one of the most important industrial sites in the Ruhr area. OGE is currently preparing the documents for the planning permission process, with commissioning scheduled for 2027.
The DoHa pipeline between Dorsten and Duisburg-Hamborn will create an essential link for hydrogen transport in the Ruhr region. The 39-kilometre pipeline will enable the supply of green hydrogen to thyssenkrupp Steel Europe (tkSE) for steel production in the future. OGE is currently preparing the documents for the planning permission process, with commissioning also scheduled for 2027.
What is now needed from politics
Attractive financing conditions, accelerate implementation
An efficient hydrogen infrastructure forms the foundation for building a competitive hydrogen economy. Reliable and sustainable financing conditions are crucial to driving forward the expansion of the necessary networks. We must create attractive framework conditions in the international competition for investment. For the H₂ core network, this means in concrete terms: The return on equity should be increased and the planned retention on the amortisation account reduced. This is the only way to create a balanced risk-return profile that will activate private capital for the development of the infrastructure.
To speed up approval and procurement procedures, the Hydrogen Acceleration Act (WassBG) must be passed quickly.
Consider the entire value chain
Legislators must consider all parts of the hydrogen value chain. Large hydrogen storage facilities are essential from the outset to ensure security of supply and flexibility. Politicians should therefore create a clear regulatory framework and targeted funding instruments that enable investment in these storage facilities.
In order to supply the German core network with sufficient hydrogen, international hydrogen projects must be developed and implemented – especially with neighbouring countries. This requires accelerated approval and funding procedures as well as European risk mitigation mechanisms to secure financing and utilisation of the import corridors.
Hydrogen distribution networks also need attractive financing options in order to tap the huge potential of commercial and industrial customers across the country. The German government should implement the EU gas and hydrogen package quickly and pragmatically so that planning security is also created in the distribution network and infrastructure development is not slowed down by regulatory uncertainties.
Robust demand and reliable supply
A state-supported intermediary (midstreamer) would be useful for bundling imports. It could procure the required quantities while also creating market liquidity and investment security for producers and consumers. In addition, further incentives are needed on the production and consumption side. Electrolysis capacities, H2-ready power plants and industry must be specifically promoted in order to establish hydrogen as an energy carrier.
The German Government should swiftly present its plans for the power plant strategy agreed in the coalition agreement.
Align European rules with the ramp-up
The focus here is on the criteria presented by the EU Commission for the production of renewable and low-carbon hydrogen. If the restrictive approach taken to recognising hydrogen as renewable or low-carbon is continued in this form, the timely availability of sufficient quantities of hydrogen for the development of a liquid market is seriously jeopardised. A liquid hydrogen market needs sufficient low-carbon hydrogen. The delegated act adopted by the European Commission is proving to be an obstacle here because it is too restrictive. A broader definition of low-carbon hydrogen would accelerate industrial change.
Sustainable carbon management
Climate targets can only be achieved with a comprehensive carbon management strategy at national and European level According to the IPCC report, CO2 capture in industrial processes is essential to achieve the goal of climate neutrality by the middle of the century. In the long term, we will also need negative emissions from direct air capture to achieve this goal. In the short and medium term, however, the competitiveness of industry must be maintained through carbon capture and storage (CCUS). Unavoidable emissions from the lime, cement and waste industries must be captured and transported to storage sites in the North Sea. This is where OGE’s expertise comes into play.
We are working closely with our potential customers and partners to realise transit and export corridors in a timely manner. Time is short, as planning and approval procedures must be well prepared and implemented, and storage facilities must be developed and constructed. Furthermore, industry has just over a decade to invest in new innovative facilities and thus massively reduce its emissions. European regulations will gradually reduce the number of emission allowances in the European emissions trading system, and free allocation will also decline from 2026 onwards. Companies subject to European emissions trading will therefore face higher costs and will have to reduce their emissions or, in the case of hard-to-abate sectors, capture, transport and store them underground.
Um dies zu ermöglichen ist das wichtige Fundament aufTo make this possible, the important foundation has been laid at national level. The KSptG not only enables capture, but also the storage and transport of CO2. With the ratification of the London Protocol, CO2 can also be stored across borders in storage sites throughout Europe. These are important prerequisites for establishing a cross-border European CO2 network and the corresponding transit corridors. The national legal basis now provides planning security for energy-intensive companies in the cement, lime and waste management industries. The development of the entire value chain, from capture to storage, will take approximately seven to ten years.
Our vision for a European CO2 network
Together with our European partners, we are working on our vision of a trans-European CO2 transport network.
In phase one, we are focusing on individual corridors via our neighbouring countries such as Belgium and the Netherlands towards the North Sea and Norway in order to be able to use the offshore storage facilities there. Germany is expected to benefit from its important role as a transit country, transporting CO2 from our south-eastern neighbours to storage facilities in the North Sea. Here, too, OGE’s expertise is indispensable, as we are experts in the pipeline transport of gaseous molecules.
Phase two involves the development of a European CO2 network to decarbonise the whole of Europe and jointly achieve European climate targets. To take this step, we need to start planning now and make investments in a pan-European network attractive.
What is now needed from politics
At national level, work on establishing the CO2 infrastructure must continue urgently after the KSptG has been passed. The first priority is to de-risk investments in infrastructure, because without safeguards, no construction will take place. The investments already flowing into planning and approval procedures are too high and are largely borne by the companies themselves in advance. De-risking measures must also be taken for companies along the entire value chain so that emitters and storage operators have long-term planning and investment security.
At European level, the European Commission is expected to publish the CO2 regulation package for the transport and storage of CO2 in the third quarter of 2026. The aim is to promote the development of a European CO2 infrastructure and to harmonise the rules for the transport, storage and use of CO2. Once the European Commission’s proposal is available, the regular legislative process will begin with the European Parliament and the Council. This is expected to take a total of two years. By 2028, there should be certainty about what the legislative framework for the development of a CO2 market in Europe and Germany will look like.
Since the European CO2 infrastructure is predominantly cross-border infrastructure, European de-risking measures must also be developed here. Only by hedging investment risks for companies will it be possible to establish a trans-European CO2 infrastructure and thus achieve climate targets. To realise this, the German government must advocate for political measures in Brussels. Only if the political framework supports the business case for CCUS will investments be made in the coming years. Otherwise, we will lose precious time.