Industrial Strategy 2035: Promoting Hydrogen

With the Industrial Strategy presented on 16 January, the Austrian Federal Government has established a strategic framework to strengthen Austria’s industrial location. The objective is to enhance competitiveness, ensure security of supply and advance the transformation towards climate neutrality while providing long-term investment certainty.

Hydrogen and Network Infrastructure

The Industrial Strategy underlines the importance of hydrogen for the industrial sector. The development of a hydrogen transmission network by 2035 is envisaged, connecting industrial clusters, storage facilities as well as import and transit corridors, and enabling an integrated hydrogen internal market.

In Austria, the establishment of a hydrogen start-up network forms the basis for the ramp-up of the hydrogen economy. Gas Connect Austria is actively driving this development through concrete projects. With H2 Backbone WAG + Penta West and H2 Backbone Murfeld, existing transmission pipelines are to be repurposed and expanded in order to connect Austria – and its industrial clusters – to a future European hydrogen network.

Regulatory and Financial Framework Conditions

The timely expansion of hydrogen infrastructure requires clear and practical framework conditions. The hydrogen package within the revised Gas Act (GWG) is intended to provide the necessary regulatory basis, in particular through clear rules on unbundling, network access, tariff structures, approval procedures and the repurposing of existing pipelines.

Equally important are suitable financing instruments for network expansion as well as measures to mitigate network costs during the ramp-up phase. Coordinated use of national and European funding instruments helps trigger investments and limit cost impacts for industry and end consumers. In this context, Gas Connect Austria proposed the introduction of a state-guaranteed hydrogen ramp-up account as a national financing instrument last year.

Security of Supply and Industrial Transformation

In addition to network expansion, further systemic measures are required to ensure a secure and resilient energy supply as well as grid stability. The Industrial Strategy provides, among other things, for the assessment and promotion of new generation capacities, such as hydrogen-ready gas-fired power plants. A comparable approach can also be observed in Germany, where the construction of new H₂-ready gas-fired power plants is planned as part of the power plant strategy.

Moreover, lifting the ban on Carbon Capture and Storage (CCS) creates additional options for reducing emissions in energy-intensive “hard-to-abate” sectors. In combination with the expansion of hydrogen infrastructure, this enables industrial transformation pathways that take climate targets as well as location competitiveness and security of supply into account.

Gas Connect Austria contributes technical expertise, existing infrastructure and many years of experience as a transmission system operator. The Industrial Strategy sets important impulses – the key task now is to translate these into practice through reliable framework conditions and swift, coordinated implementation.