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The first pipeline plans leave Switzerland behind. A Swiss project wants to change that – also with state aid.
Algiers, mid-February. Robert Habeck stands on a roof terrace in Algeria’s capital for an Instagram video and enthuses: The North African country can produce hydrogen with solar power. “Algeria has ideal conditions for this – and above all, it has a gas pipeline to Europe,” says the German Economics Minister. “There is a very specific project to convert these gas pipelines into hydrogen pipelines. These go through the Mediterranean, high above Italy and arrive virtually around the Alps in southern Germany.”
Around the Alps – from a Swiss perspective, this is the problem: The first expansion stage of the European hydrogen network is intended to connect Italy and Germany in a wide arc via Vienna, past Switzerland.
This concerns Energy Minister Albert Rösti. A connection to Switzerland is important: “Because we cannot produce much hydrogen ourselves. We will therefore import the majority of hydrogen when it is one day heavily used in industry.
A billion for connection
There is a plan for a Swiss connection. He comes from the company FluxSwiss, the operator of the Swiss natural gas transit pipeline from north to south. She also wants to use this for hydrogen.
In northern Switzerland, the line is routed twice, making conversion easy, says Rudy Van Beurden from FluxSwiss. The route through the Alps will be more complex: “Here we have to build a parallel line through the existing tunnel.”
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For years, research has been carried out into how renewable hydrogen can be used to indirectly store electricity – like here in Auersthal, Austria, by the company OMV.
REUTERS/Heinz-Peter Bader
Van Beurden says for the first time how much the conversion could cost: around one billion francs. “It’s about a period of 30, 40 years – then a billion isn’t that much. It’s a safeguard for Switzerland.”
The billion can be raised on the capital market. In addition, there is a need for government protection in the event that hydrogen takes hold more slowly than expected: “We have to discuss how this can be done in Switzerland. In Germany they are working on a solution. If the market ramp-up is not sufficient, the state will compensate for this.”
Energy Minister Rösti and his department are non-binding: insurance is being examined. At the end of the year, the Federal Council will present a hydrogen strategy.
So there are question marks when it comes to money – as well as when it comes to speed: FluxSwiss has applied to the Association of European Gas Network Operators for Switzerland to be included in the first expansion stage. This is also in the European interest, says Van Beurden. The line via Austria leads past the important federal state of Baden-Württemberg. In addition, the route through Switzerland is shorter and therefore more economical to operate.
This line is scheduled to be officially registered with the EU in the fall. The train didn’t leave here.
The decision from the European network operators is still pending. In the next step, the EU comes into play: it could recognize the management by Switzerland as a “project of common interest”. This would simplify procedures and make subsidies possible.
So this is where things get political. And here Federal Councilor Rösti supports the project. “The line is due to be registered with the EU in the autumn. The train didn’t leave here.”
Switzerland has not yet missed the hydrogen connection. Exciting discussions are coming up – about speed, money and guarantees.