The German Federal Ministry for Economic Affairs and Climate Action said in a strategy paper over the weekend that Germany plans to develop an 1800-km hydrogen energy pipeline by 2027.

The paper also envisages Germany fostering the use of blue hydrogen and importing it during a transition period towards green hydrogen.

Germany, the largest economy in Europe and 4th largest in the world, is making a concerted effort to use cleaner sources of energy and to diversify its suppliers -- being too dependent on Russian gas has been perceived as the principal cause of German and European energy market volatility the past year.  

The creation of a hydrogen network company with state participation was needed to build a system that was both fit for purpose and affordable, the paper said. The government will present its plans to industry shortly.

Chancellor Olaf Scholz in September said Germany wants to create a boom in the use of hydrogen as a way of diversifying its energy sources and to meet its climate goals.

Blue hydrogen is extracted from natural gas and captures the CO2 emissions in underground or subsea storage. It is seen as a transitional approach while green hydrogen, which uses renewable energy for extraction, cannot fully meet demand. Some environmentalists oppose it.