In Belgium, The European Commission has approved, under EU State aid rules, an estimated $3.2 billion German scheme to support the construction of the Hydrogen Core Network (HCN). The measure will contribute to the achievement of the objectives of the EU Hydrogen Strategy and ‘Fit for 55’ package, by enabling the creation of hydrogen transmission infrastructure that is needed to foster the use of renewable hydrogen in industry and transport by 2030, the commission said. Germany had previously notified the Commission of its intention to introduce this scheme to support the construction of the domestic HCN. The HCN will be the backbone of long-distance transport pipelines for hydrogen in Germany and part of the European hydrogen backbone connecting several member states. The measure aims to facilitate investments in the construction of the HCN. Necessary investments include repurposing of existing gas pipelines to transport hydrogen, and (building new hydrogen pipelines and compressor stations, the commission added. The construction and operation of the HCN will be financed by hydrogen transmission system operators (TSOs), who will be selected by the German federal network agency, Bundesnetzagentur. The aid will take the form of a State guarantee which will allow the TSOs to obtain more favourable loans to cover initial losses in the ramp-up phase of the HCN. The first major pipeline is expected to be operational as from 2025, while the completion of the entire HCN is expected in 2032.
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