KfW IPEX-Bank provides financing for energy security and future hydrogen infrastructure in Germany

Transmission system operator bayernets is investing EUR 210 million in the energy infrastructure in Bavaria, which will also improve Baden-Württemberg's technical connection. KfW IPEX-Bank, Commerzbank and DZ Bank are each contributing a third of the sum.

The investments will be used for the construction of the 40.5 kilometre-long gas pipeline, AUGUSTA, which will connect the Wertingen network node in the district of Dillingen an der Donau, located on the Danube, to the Kötz network node in the district of Günzburg. Right from the outset, the pipeline will meet the basic requirements for the transportation of hydrogen, which will flow through the pipeline in the medium and long term.

“The AUGUSTA pipeline is an important step in securing the energy supply in Bavaria and Baden-Württemberg in the long term and will enable the transportation of hydrogen in the future,” explained Andreas Ufer, Member of the Management Board of KfW IPEX-Bank. “We are proud that our financing will contribute to the decarbonisation of industrial centres in southern Germany and, in turn, to maintaining Germany a strong industrial location.”

AUGUSTA will be linked to the planned SoutH2 Corridor, which is a joint initiative of four European transmission system operators from Germany, Austria and Italy. From 2030, green hydrogen will be transported from Algeria and Tunisia in North Africa to the Austrian-German border point at Burghausen via this conductor and then distributed in Germany via HyPipe Bavaria.