The EU Commission has approved 3 billion euros ($3.2 billion) in German state aid to support the construction of a hydrogen pipeline network, the Hydrogen Core Network (HCN). 

The HCN is expected to become the backbone of Germany's long-distance hydrogen transport system and integrate with similar networks across the European Union. 

The project aligns with the EU's Hydrogen Strategy and "Fit for 55" package, which aims to develop renewable hydrogen infrastructure and reduce greenhouse gas emissions.

Germany's state aid will fund the repurposing of existing natural gas pipelines for hydrogen transport, as well as the construction of new pipelines and compressor stations. 

The hydrogen transmission system operators (TSOs) selected by the German federal network agency, Bundesnetzagentur, will oversee construction and operation, with the state aid intended to ease the financial burden during the initial phase. This will also provide TSOs with guarantees for securing favorable loans to cover potential losses. 

The first major pipeline is expected to be operational by 2025, with the entire HCN network targeted for completion by 2032 as Germany considers hydrogen as a key element in decarbonizing its economy. 

Earlier this year, state-controlled firm Securing Energy for Europe (Sefe) announced plans to invest 500 million euros ($534 million) to convert existing gas storage facilities and pipelines for hydrogen use.

In December, Sefe signed a significant natural gas supply agreement with Norway's Equinor, valued at an estimated 50 EUR ($54 billion). The deal also included a non-binding letter of intent for Sefe to become a long-term buyer of large-scale, low-carbon hydrogen from Equinor starting in 2029 and continuing through 2060.