Approval of the hydrogen core network: A crucial step for hydrogen expansion
On October 22, the Federal Network Agency approved the development of the hydrogen core network. This is a key milestone in creating a central infrastructure for hydrogen supply and establishing a future hydrogen market. Such infrastructure is essential for the decarbonization of the steel industry and other energy-intensive sectors.
Kerstin Maria Rippel, Managing Director of the German Steel Federation, emphasized: “The approval of the hydrogen core network is a vital step to kickstart the stalled expansion. However, more concrete actions must follow quickly, as an adequate supply of hydrogen at affordable prices is still far off. What we need now is the rapid development of import connections and a pragmatic approach to the different types of hydrogen—what matters in the end is the reduction of CO2 emissions!”
Flexible response times
The steel industry, however, can flexibly respond to initial difficulties: In a direct reduction plant (DRI plant), natural gas can be used as an interim solution until affordable hydrogen is available. By using natural gas, around 60 % of CO2 emissions can already be reduced.
Competitive framework conditions and planning security for industrial hydrogen users are essential. This includes, above all, internationally competitive electricity prices, which must now be the top priority for the federal government.”
EU Parliament debate: Urgent action needed for the steel industry
In the European Parliament’s debate on October 23, the significance of the steel industry, which faces immense challenges, was highlighted: Global overcapacity, unfair trade practices, and high energy costs are weighing heavily on steel companies, particularly in Germany. In addition, steel demand has decreased and, according to forecasts, will remain low next year.
“Steel companies must make their production climate-neutral while dealing with massive pressures—especially in Germany, where electricity costs are particularly high compared to other European countries, and domestic demand has significantly decreased,” said Kerstin Maria Rippel. The debate in the European Parliament is a crucial signal at the right time, showing that the challenges facing the steel industry are being taken seriously within the EU.
Supplementing the Green Deal
At the beginning of her second term, European Commission President Ursula von der Leyen announced an industrial policy complement to the European Green Deal. Measures such as the Clean Industrial Deal and a Steel and Metals Action Plan are intended to pave the way for a climate-friendly and competitive industrial landscape. “The fact that the industrial policy debate is now gaining momentum in the EU is welcome and urgently needed,” Rippel said. She urged that concrete measures must soon follow to protect the transition to climate neutrality in trade policy, ensure competitive energy prices, and create clear guidelines for CO2-reduced products.
Germany must play a key role in this, as the steel industry is a foundational sector, forming the basis of nearly all industrial value chains and making a crucial contribution to European resilience and climate goals—both in Germany and across Europe.
