This transformation won’t happen overnight or through a one-size-fits-all solution. While efforts to tackle the full hydrogen value chain are underway, transportation and storage continue to lag behind production. This gap could prevent potential users from accessing hydrogen at the industrial scale required for meaningful change.
Hydrogen Valleys: A Strategic Start
To address these challenges, several countries are focusing their distribution efforts on “hydrogen valleys.” These are regions with clusters of industries — typically around ports and refineries—that can leverage hydrogen as a decarbonisation tool.
Notable examples include:
- Normandy Hydrogen Valley (France): Focused on integrating green hydrogen production with industrial use.
- HEAVENN (The Netherlands): A comprehensive hydrogen ecosystem encompassing production, storage, and distribution.
- California Hydrogen Valley (USA): A hub for hydrogen-powered transportation and industrial applications.
While these valleys represent critical progress, they don’t address the broader challenge of delivering hydrogen to factories and industries located outside these concentrated zones.
Germany’s Ambitious Hydrogen Pipeline Network
Germany is taking a more ambitious approach by developing a national hydrogen pipeline grid. By the end of 2025, the country aims to have 525 kilometres of hydrogen pipelines in service, 507 kilometres of which will be repurposed natural gas infrastructure. By 2032, Germany plans to expand this network to over 9,000 kilometres, ensuring hydrogen is accessible across the country.
A Case Study: South Wales’ Hydrogen Pipeline
In South Wales, plans are underway to construct a 130-kilometre pipeline that will transport hydrogen from offshore wind farms equipped with electrolysers to industrial hubs like Port Talbot. This initiative, part of the Pembrokeshire Demonstration Zone in the Celtic Sea, involves Dolphyn Energy and serves as a proof-of-concept for scaling a standardised approach to hydrogen distribution.
Localised Hydrogen Production: A Competing Vision
In contrast, other regions are exploring the potential of localised hydrogen production near end-users to eliminate the need for long-distance transportation. Small-scale plants, utilising either electrolysis or natural gas reforming, are under development worldwide.
One advantage of this approach is that it avoids placing additional demand on electricity grids for transporting renewable energy. This is particularly appealing at a time when electricity demand is growing exponentially, driven by the proliferation of data centres and other energy-intensive sectors. Moreover, public support for renewables remains crucial, and large-scale electricity infrastructure projects, such as new 50-metre-tall pylons spanning hundreds of kilometres, often face resistance from local communities due to their visual impact.
The Path Forward: Should Others Follow Germany’s Lead?
Germany’s ambitious pipeline plans raise an important question: Should other countries follow suit? A hydrogen pipeline grid offers a scalable solution for transporting hydrogen across regions and industries, enabling widespread adoption and decarbonisation. However, localised production also presents a compelling alternative, particularly for countries with significant renewable energy potential and distributed industrial demand.
As the hydrogen economy evolves, a mix of these strategies may be necessary to address regional differences, infrastructure limitations, and economic considerations. What’s clear is that bold, coordinated action is essential to ensure hydrogen’s role in decarbonising our hardest-to-abate industries.
