Netze BW GmbH and Karl Dungs GmbH & Co. KG have signed a letter of intent (LoI) regarding the future supply of hydrogen to the Urbach site. With this, both partners reaffirm their shared goal of actively driving the regional transformation towards climate-neutral energy sources.
The molecules of the hydrogen economy, together with the electrons of the electricity sector, form the strategic backbone of a climate-neutral energy supply. Hydrogen acts as a universal energy storage medium that can bridge the gap between volatile generation and continuous industrial demand. In this way, hydrogen also ensures the decarbonisation of industrial production processes.
“The development of the hydrogen core network is the next logical step for Netze BW as a gas distribution network operator: We are further developing our infrastructure so that companies in Baden-Württemberg can continue to produce in a climate-friendly and competitive manner in the future,” emphasised Dr. Jörg Reichert, Chairman of the Management Board at Netze BW.
DUNGS as a technological pioneer
At its headquarters in Urbach, DUNGS develops and produces components and systems for safe and efficient gas combustion. As a technological pioneer in the field of hydrogen-compatible combustion technology, the company will be both a supplier and user of hydrogen technologies in the future. A particular challenge is the location of the site: Urbach is relatively far from the South German Natural Gas Pipeline (SEL), which will be part of the nationwide core hydrogen network in the future and represents an important connection to Baden-Württemberg. A direct connection is therefore not expected until the long term (from 2035 onwards).
Nevertheless, with this letter of intent, Netze BW and DUNGS aim to examine early on how a future hydrogen supply can be enabled even without relying on the major hydrogen pipelines.
Connecting locations away from the H2 core network
“The ramp-up of the hydrogen economy must not be based solely on existing pipelines,” explains Hendrik Adolphi, Head of Gas Network and Infrastructure Management at Netze BW. “Industrial companies like DUNGS demonstrate that locations further away from the core hydrogen network also have a need. These needs must be incorporated into the planning early on if we want to avoid regional disadvantages.”
Against this backdrop, the establishment of a regional hydrogen cluster in Urbach is under discussion. The aim is to decarbonise not only the local heat supply, but also, in the long term, to supply neighbouring industrial and craft businesses with climate-friendly energy, e.g., via a district heating network, through decentralised production of green hydrogen – for example, via electrolysis – in addition to pipeline-based infrastructure.
Regional clusters with bridging function
“Regional clusters can play a crucial bridging role until the core hydrogen network is actually rolled out across the region,” Adolphi continued. “The project in Urbach is a good example of how industry, network operators, and the region can jointly assume responsibility.”
DUNGS also sees great opportunities in the regional approach: "Especially for small and medium-sized enterprises, switching to climate-neutral heat is often an enormous challenge," added Simon Dungs, Managing Director of Technology at the company. "A regional hydrogen cluster can open up new perspectives here, keep added value in the region and strengthen the Urbach location overall."
LoI as a strong signal for the Urbach industrial location
The municipality of Urbach expressly welcomes this commitment. "The LoI sends a strong signal for Urbach as an industrial location," explained Mayor Martina Fehrlen. "It strengthens regional value creation, secures jobs, and demonstrates that climate protection and industrial development can be considered together."
With the signing of the LoI, Netze BW is further expanding its network of potential industrial anchor customers for hydrogen use. At the same time, it becomes clear that the development of a hydrogen region begins where committed companies develop concrete solutions – even beyond existing infrastructure. Other industrial and commercial enterprises are invited to participate in regional hydrogen planning at an early stage through their responsible gas network operator.