CASE Corporate Finance in cooperation with ABN AMRO acted as the financial adviser to Gasunie for their multi-billion EUR hydrogen network tender submission to the German government as part of the "Kernnetz" hydrogen backbone initiative in Germany
Germany has unveiled an ambitious plan to build a 9,666 km hydrogen pipeline network, at an estimated cost of EUR 19.7 billion. The project, featuring bespoke government underwriting and risk-sharing components, aims to stimulate both demand and supply by creating a liquid, tradable hydrogen market, addressing the transportability challenges crucial for large-scale industrial uptake.
The German transmission system operators have submitted a joint application for the hydrogen core network to the Federal Network Agency (BNetzA). This network will repurpose 60% of existing natural gas pipelines and connect key consumption, production, storage, and import hubs by 2032. With the BNetzA's approval process nearing its conclusion, the first hydrogen pipelines are set to become operational in 2025. This project is designed to support the decarbonization of industry and energy supply, providing market participants with the security needed for investment.
Gasunie, a leading energy network operator in the Netherlands and northern Germany, is one of the transmission system operators which submitted an application. The company aims to facilitate large-scale hydrogen transport and storage, transitioning from natural gas to green gas and hydrogen to ensure a sustainable energy future. This project positions Gasunie as a key player in Germany's hydrogen rollout, marking a significant milestone in Europe's energy transition and paving the way for innovative hydrogen projects.
CASE Corporate Finance and ABN AMRO served as the financial adviser to Gasunie for this groundbreaking initiative. Our advisory responsibilities encompassed an in-depth exploration of opportunities within the hydrogen market, a comprehensive review and analysis of the Kernnetz financing model, evaluating its risk-return profile and offering recommendations for optimising the government's support package. We provided insights on how third-party debt and equity providers might perceive the investment proposition and advised on potential rating impacts for Gasunie. Additionally, we supported Gasunie in their application to the German government for inclusion in the Kernnetz scheme, with Gasunie’s proposed projects being multi-billion EUR.