Energy infrastructures

Germany, Patrician-Gasunie agreement to store hydrogen in salt caverns

The first agreement in Europe between the German multinational and the Dutch energy infrastructure company has been signed: underground storage facilities at the Etzel plant in Lower Saxony, where oil and gas are already stored, will also become hydrogen storage facilities

by Laura Cavestri

Il sito

3' min read

3' min read

Underground caverns in Lower Saxony - already storage for oil and gas on a large scale - will also become storage for hydrogen. Patrizia SE and Storag Etzel (Patrizia's wholly-owned operating company) have signed a lease agreement with the Dutch energy infrastructure company Gasunie for the development of caverns for hydrogen storage at the Etzel cavern plant in Lower Saxony. According to the agreement, Storag Etzel - which has operated oil and gas storage facilities in underground caverns for more than 50 years - will develop the same storage facility for hydrogen storage.

The agreement includes an option to store more than 1 TWh of hydrogen (which is equal to 1,000 million kilowatt hours and provides hot water and heat to 100,000 average households per year). The 'H2CAST Etzel' hydrogen storage pilot project, conducted by Storag Etzel, Gasunie and other partners from 2022/2023, is expected to demonstrate the feasibility of hydrogen storage in Etzel's underground caverns.

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The pilot project

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The hydrogen storage pilot project called 'H2CAST Etzel' includes the conversion of two caverns into hydrogen storage caverns, the construction of an above-ground plant and a subsequent test and research phase that will be completed by the end of 2026. The pilot project is financed by the German federal government and the state government of Lower Saxony with an investment covering more than one third of the total costs of the pilot test.

The objective of the pilot test is to demonstrate the feasibility of high-volume hydrogen storage in underground caverns with an industrial-scale storage volume. The test will be conducted under real-world conditions, including injection and withdrawal of hydrogen in multi-cycle operation, purification of the hydrogen gas and testing of the integrity of the storage facility.

Currently, the salt dome comprises 75 caverns in operation that today store 3.9 billion cubic metres of natural gas and can store a further 10 million cubic metres of crude oil. Etzel's underground facility can be expanded to 99 caverns already approved, which represents an additional capacity of 24 caverns with the equivalent of approximately five TWhH2. Due to the lower calorific value of H2, the required storage volume for hydrogen is four times larger than for natural gas.

Patrizia SE launched two cave funds over the years in 2008 and 2013, respectively. Both funds have a solid track-record of stable and attractive returns for a group of 20 long-term investors. The prospect of transforming the Etzel cavern deposit into a full hydrogen storage facility by 2050 underlines PATRIZIA's commitment to investing in the energy transition and zero-emission economies.

The potential

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According to the European Union, the potential of hydrogen for our future zero-emission energy consumption is significant. Renewable energies could provide a substantial part of Europe's energy mix in 2050, of which hydrogen could account for up to 20 per cent, in particular 20-50 per cent of energy demand in transport and 5-20 per cent in industry.

Germany will provide EUR 350 million from its national budget for hydrogen production in Germany, in addition to the EUR 800 million already earmarked for European projects by the EU Innovation Fund. Germany's future strategy of natural gas power plants, which will be ready and converted to hydrogen, will generate an additional demand for hydrogen storage, which the Etzel salt dome cavern deposit can provide. The Etzel storage facility connection is also part of the planned hydrogen pipeline network, called 'Kernnetz' (central hydrogen network), to meet future hydrogen demand throughout Germany.

'The 'H2Cast Etzel' pilot project and the new agreement with Gasunie,' said Heiko Süß, Head of Patrizia Fund Management Frankfurt, 'is crucial in demonstrating that our cave deposit is 'H2-ready' and can play an important role in securing a steady energy supply for Germany and Europe.

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