Munich utility to participate in Neumünster green hydrogen hub

Munich utility firm SWM could join the 5,000 tonne-per-year decentralised green hydrogen hub in Neumünster, Germany, being built by Swiss project developer Infener.

While details of SWM’s involvement remain vague, under a newly signed letter of intent, it could support the 50MW  multi-use regional hydrogen hub and flagship EU hydrogen valley project due online in 2028.

It says the hub represents a promising pilot project which could strengthen its position in green hydrogen.

Tennet, the region’s transmission system operator, and grid operator Schleswig-Holstein Netz (SH Netz) are also eyeing the hub for its grid balancing potential. This involves producing green hydrogen during periods of excess renewable generation for storage and reuse when generation is low.

SH Netz is overseeing the hub’s transmission infrastructure, while Tennet will install a substation to which it will be connected.

While grid balancing presents a potential way to absorb excess energy generation, it faces clear bottlenecks, including high capital costs for production, storage and reconversion, and underdeveloped transport and storage networks.

Germany’s hydrogen production capacity and infrastructure development continue to lead the way in Europe, despite falling short of targets.

The government has been ramping up funding commitments, offering fast-track regulatory frameworks, and forging cross-border partnerships to secure long-term supply and industrial demand.