German media: Hydrogen pipeline proposal could breathe new life into Nord Stream 2

The possibility of using the Nord Stream 2 pipeline to import "green" hydrogen from Finland to Germany and neighboring Baltic Sea countries is under consideration.

German publication Handelsblatt revealed the development citing sources within a consortium working on a hydrogen pipeline project in the region, per Caliber.Az.

The Baltic Sea Hydrogen Collector (BHC) project is being developed by three companies: Denmark’s Copenhagen Infrastructure Partners (CIP), Sweden’s Nordion Energi, and Finland’s Gasgrid Finland. The consortium notes that building a new hydrogen pipeline from scratch would be prohibitively expensive, making the repurposing of the Nord Stream 2 pipeline an appealing option. Sources within the group remarked, "It makes no sense for anyone to have the pipes rotting at the bottom of the Baltic Sea."

Experts suggest that converting the existing pipeline for hydrogen transport presents minimal technical challenges. They point to the example of the Ostsee Anbindungsleitung (OAL) pipeline, which was built using pipes originally intended for Nord Stream 2. The OAL pipeline was designed to be adaptable for hydrogen transportation, and experts believe the same approach could work for Nord Stream 2.

If the pipeline were to be converted for hydrogen imports from Finland, a connection to Finland would need to be added at a suitable location in the Baltic Sea. According to Handelsblatt, this modification is technically feasible.

However, a spokeswoman for Germany’s Ministry of Economy stated that the German government is not currently involved in any discussions regarding the use of the pipeline, including with Russia, and that "the question of using the pipes is not on the table."

In January, the Swiss canton of Zug extended the moratorium on debt restructuring for Nord Stream AG until May 9. This moratorium is being seen as a way for the German government to preserve its influence over the future of the pipeline. If the company is liquidated, investors, including the German state-owned energy firm Uniper, would lose control over the pipeline and the considerable funds invested by German taxpayers in its construction.

According to sources familiar with the situation, the extension of the moratorium provides the German government with an opportunity to shape the pipeline's future. A spokesman for the German Finance Ministry emphasized that efforts will continue to protect Germany’s interests, while Uniper has expressed its intent to "defend its interests as one of the investors."

Nord Stream 2 is an export pipeline that runs from Russia to Europe through the Baltic Sea, with a total capacity of 55 billion cubic meters of gas per year. Although construction was completed in September 2021, the pipeline was never operational. A year later, in September 2022, one string of Nord Stream 2 and both strings of the parallel Nord Stream pipeline were destroyed by explosions.

By Tamilla Hasanova