The Bundeskartellamt currently has no competition law concerns about the cooperation in the context of the Get H2 project of several operators of natural gas pipelines to set up a hydrogen network infrastructure. With this project, the pipeline network operators Nowega GmbH, Open Grid Europe GmbH and Thyssengas GmbH jointly intend to gradually set up and operate a hydrogen network extending from Lingen to the Ruhr area and from the Dutch border to Salzgitter.

Andreas Mundt, President of the Bundeskartellamt: “There are currently a number of cooperation projects in the growing hydrogen market. Switching existing gas pipelines which are no longer required to hydrogen, as is done in the case of the Get H2 project, certainly plays a big role in this context. When competitors cooperate, the guiding principles of competition law have to be observed. A cooperation project may only restrict competition to the extent and for the period required for a speedy set up of the hydrogen infrastructure. Competition requirements include in particular non-discriminatory network access for producers and distributors. Alternative providers of hydrogen infrastructure must not be excluded either.”

The network the three pipeline operators intend to set up in the context of Get H2 consists of both existing natural gas pipelines which are to be switched to hydrogen and new pipelines. RWE Generation SE in Lingen will produce the hydrogen which will be transmitted via the network. Buyers of the hydrogen will include BP Europa SE and Salzgitter Flachstahl GmbH. According to the agreed access and exploitation scheme, producers can feed hydrogen into the network and buyers can draw it from it at any point in the network. Whatever the specific route of transport, fees will be charged both for feeding hydrogen into and drawing it from the network (entry-exit model). The cooperation also governs specifics as to the calculation of network charges and the duration of the contracts concluded with the producers and buyers of hydrogen involved in the project.

The access model chosen by the parties has already proven to be an efficient exploitation and billing system in the gas industry. It safeguards non-discriminatory network access and preserves competition in the production and distribution of hydrogen. It is particularly important to the Bundeskartellamt that the hydrogen network is designed in a way that also allows alternative infrastructure operators to be part of it in practice. The present project currently does not give reason to suspect unlawful restraints of infrastructure competition.

The hydrogen market is undergoing dynamic development and it is not possible at this stage to predict future market conditions. Individual aspects of cooperation projects may have to be reassessed in future. Companies are in principle responsible for setting up agreements which comply with competition law. The Bundeskartellamt is also available for advice regarding cooperation projects. The Bundeskartellamt would examine any potential complaints as to the specific implementation of the cooperation project and take action where necessary. The authority will also continue to keep a close eye on the competition situation on the respective markets.