Greece pursues plans for a 1-billion Euro hydrogen pipeline project in its gas grid
In the heart of Europe, a significant energy transition is underway, with Greece and Bulgaria at the forefront. The proposed 1 billion euro hydrogen pipeline project, while not yet explicitly confirmed in detail, is part of a larger context of changes in Greece's gas market.
The project, if realised, would be a crucial part of the Vertical Corridor initiative, an existing gas pipeline system that connects several European countries, including Greece and Bulgaria. This corridor is currently undergoing upgrades to increase its capacity, aiming to bolster Southeastern Europe's gas connectivity and reduce dependency on Russian gas.
The Vertical Corridor plays a crucial role in the European southeastern energy infrastructure. It connects Greece's expanding LNG import facilities to Eastern Europe and Ukraine, enhancing energy diversification and security by facilitating gas flows from multiple sources. The corridor is also essential for supporting EU energy policies under REPowerEU, which aim to reduce reliance on Russian fossil fuels.
However, the most recent updates focus on natural gas expansion and liquefied natural gas (LNG) terminals rather than a dedicated hydrogen pipeline. For instance, the Alexandroupoli FSRU terminal, partly owned by Bulgaria, is aimed at creating a new axis of diversification for Central and Eastern Europe’s gas supply.
The proposed hydrogen pipeline, if it materialises, would connect regions with high potential for hydrogen production with central Europe and southern Germany, where significant demand for hydrogen is expected by 2030. The pipeline, approximately 540 kilometers long, would tap into big quantities of solar and wind energy.
In the first half of the year, domestic gas consumption in Greece dropped by an annual 21.7%. This drop, along with a 15% rise in gas exports, is not limited to the hydrogen pipeline project but is broader trends in Greece's gas market. The war in Ukraine has led to a shift in gas imports towards liquefied natural gas through Greece's sole LNG terminal off Athens. Greece's role as a transit route for gas to Bulgaria and other central European countries has strengthened due to the war and cuts of Russian gas supply.
The hydrogen pipeline project, while significant, is part of a larger picture of Greece's energy transition. The pipeline, if realised, would place Greece, Spain, and Italy at the same level in terms of potential for hydrogen infrastructure, according to Maria Rita Galli, DESFA Chief Executive. The pipeline is part of a future European southeastern corridor, a testament to Greece's growing role in Europe's energy landscape.
[1] European Commission, "Vertical Corridor", [Accessed 15th May 2023]. [2] European Commission, "Southern Gas Corridor", [Accessed 15th May 2023]. [3] European Commission, "Alexandroupoli FSRU Terminal", [Accessed 15th May 2023].
- The proposed hydrogen pipeline, if realized, would not only be a part of the Vertical Corridor initiative but also introduce an element of technology, as it would transport hydrogen produced from renewable Resources such as solar and wind energy.
- In the European energy landscape, the hydrogen pipeline project, if successful, would not only establish Greece as a key player in the gas market but also position it as a significant contributor to sports like Formula 1, given hydrogen's potential as a sustainable fuel for high-performance vehicles.
