German transmission system operator Bayernets has announced a significant investment in Hydrogen pipelines in Southern Germany. 

The company will inject €210 million (about $225 million) investment in southern Germany's energy infrastructure. 

The project centres on a new gas pipeline, AUGUSTA, designed to accommodate future hydrogen transportation. The 40.5-kilometer pipeline will be jointly funded by KfW IPEX-Bank, Commerzbank and DZ Bank. 

“Right from the outset, the pipeline will meet the basic requirements for the transportation of hydrogen, which will flow through the pipeline in the medium and long term,” KfW said in a statement.

AUGUSTA is planned to connect with the SoutH2 Corridor, a hydrogen pipeline initiative led by European TSOs and designated a Project of Common Interest (PCI) by the European Union.

“The AUGUSTA pipeline is an important step in securing the energy supply in Bavaria and Baden-Württemberg in the long term and will enable the transportation of hydrogen in the future,” said Andreas Ufer, Member of KfW IPEX-Bank’s Management Board.

Scheduled for completion by 2030, AUGUSTA will serve as a key conduit for green hydrogen sourced from Algeria and Tunisia in North Africa. The pipeline will deliver hydrogen to the Austrian-German border at Burghausen, where it will connect with Germany's HyPipe Bavaria network for further distribution.