KfW is supporting the construction of a national H₂ core network on behalf of the German Federal Government. This forward-looking project is a key component of the Federal Government’s national H₂ strategy, as a result of which infrastructure with a total length of 9,040 km is to be created by 2032. By financing a new instrument - the amortization account - KfW will be making a significant contribution to the implementation of this technology of the future. KfW is providing a loan for the amortization account in the amount of €24 B. The loan agreement was signed yesterday evening.

Stefan Wintels, Chief Executive Officer of KfW said, "The construction of the H₂ core network is a pioneering and crucial project for the ramp-up of H₂ that is as green as possible. A successful transition to H₂ is particularly critical for energy-intensive industries. The amortization account will play a key role here: the funds provided by KfW via the account will make a significant contribution to a viable financing concept for the H₂ core network."

The core network is generally financed privately. By capping network fees, the Federal Network Agency will ensure that the costs for users are affordable from the outset. A compensation mechanism will finance the difference between the high investment costs of the core network operators and the low revenues from network fees in the initial phase. KfW will provide the necessary compensation payments for the amortization account. As soon as the H₂ core network operators’ revenue from the network fees exceeds the costs, the additional revenue will be returned to the amortization account.

For the H₂ core network, existing natural gas pipelines will be repurposed and new H₂ pipelines built. Integrating potential H₂ production sites and connecting key industrial centers will enable the industrial use of H₂ as a climate-neutral energy source.