Ariadne Sees Potential for Hydrogen in Industrial Clusters

Source: E&M powernews

July 15, 2026

Researchers from the Ariadne project surveyed grid operators about the H2 ramp-up. According to their findings, hydrogen distribution networks will initially be established around industrial sites and connections to the core grid.

While the core hydrogen grid is being built out gradually, the development of hydrogen distribution networks is likely to vary significantly from region to region. This is the conclusion reached by the Kopernikus Ariadne project, a federally funded research initiative focused on the transformation of the energy system. According to a study published on July 14, hydrogen distribution networks will initially develop primarily in clusters with large industrial consumers and a connection to the hydrogen core network.

The study is based on a survey of gas distribution network operators conducted by the research team in the summer of 2024. Of the 727 companies contacted, 121 fully participated in the survey. According to the authors, this is the first independent, comprehensive scientific survey on the strategies of German gas distribution network operators regarding the ramp-up of hydrogen.

The study shows that companies are currently preparing investments in hydrogen networks primarily in areas where reliable demand is emerging. In particular, distribution network operators in metropolitan areas with energy-intensive industry and the prospect of a connection to the core hydrogen network are engaged in concrete planning. In regions without industrial anchor customers or without a foreseeable connection to the core network, however, the willingness to invest is significantly lower.

According to the researchers, this reluctance is not a sign of a lack of ambition. Rather, companies are reacting to current uncertainties. These include unresolved regulatory issues, a lack of financing models, and unclear prospects for future hydrogen demand.

Smaller Companies at a Disadvantage

The analysis also highlights differences among various groups of distribution network operators. Using a cluster analysis, the authors distinguish between small local network operators, regional-rural companies, and urban distribution network operators. Operators of large urban networks, in particular, are closely involved in the planning efforts of the Federal Network Agency and the transmission system operators. Smaller companies, on the other hand, often have to rely on informal networks to obtain information about the hydrogen ramp-up.

According to the authors, this unequal level of involvement complicates investment planning. Across all groups examined, there is a high demand for information on regulatory requirements, technical specifications, and financing options. Without reliable framework conditions, many companies would postpone investment decisions.

Call for Policy Support

The researchers derive several recommendations for policy and regulation from these findings. The government should not directly control the expansion of distribution networks but should, above all, improve the framework conditions. This includes a better flow of information between the stakeholders involved, greater planning and financing certainty, and the early involvement of all distribution network operators in overarching planning processes.

According to the authors, the development of a hydrogen distribution infrastructure is gaining importance because the hydrogen backbone network alone cannot ensure the supply to future consumers. Although the Federal Network Agency approved a hydrogen core network approximately 9,040 kilometers long in October 2024—the first sections of which are already in operation— However, a publicly accessible hydrogen distribution infrastructure does not yet exist. According to the Ariadne researchers, it will primarily develop in areas where industrial companies are the first customers and where a connection to the core network is economically feasible.

The Ariadne analysis of the hydrogen distribution network is available for download as a PDF.

Author: Susanne Harmsen