CMS advises H2 Amortisationskonto GmbH on EUR 24 billion loan to develop Germany’s hydrogen core network
Hamburg, 28.11.2024 – A key milestone in setting up Germany’s core network of hydrogen pipelines has been reached. With support from CMS, the operators behind the hydrogen core network have secured EUR 24 billion in finance by entering into a loan agreement with KfW, with special-purpose vehicle H2 Amortisationskonto GmbH being used for this purpose.
H2 Amortisationskonto GmbH has concluded a loan agreement for EUR 24 billion with KfW as interim financing for the amortisation account. This finance is a crucial step in ramping up the national hydrogen market and building a hydrogen core network in Germany. The legal basis for this intertemporal compensation mechanism is the Energy Industry Act (Energiewirtschaftsgesetz, EnWG), and in particular sections 28r and 28s.
The amortisation account managed by H2 Amortisationskonto GmbH is an important instrument for developing Germany’s hydrogen infrastructure. The account serves to pay subsidies to the operators of the hydrogen core network, with the aim of cushioning the initial investment and driving forward development of a sustainable hydrogen market. The loan agreement with KfW acts as interim financing for these subsidies. The plan is for the hydrogen core network operators to pay surplus income into the amortisation account in later years, as soon as revenue from network fees exceeds the costs.
The sole shareholder of H2 Amortisationskonto GmbH is currently Trading Hub Europe GmbH, a joint venture formed by the eleven biggest gas transmission system operators in Germany which is the sole market area manager of the German gas transmission networks.
A CMS team headed by Dr Marc Riede, Shaghayegh Smousavi and Nicolai Bischof provided H2 Amortisationskonto GmbH with comprehensive legal advice. This covered all aspects of interim financing for the amortisation account and other legal issues relating to implementation of the account. CMS regularly assists companies and institutions around structuring innovative financing models and implementing pioneering projects to promote Germany’s energy transition.
CMS Germany
Dr Marc Riede, Lead Partner, Banking & Finance
Nicolai Bischof, Counsel, Banking & Finance
Dr Holger Kraft, Partner, Corporate/M&A
Dr Stefan Kühl, Senior Associate, Corporate/M&A
Shaghayegh Smousavi, Partner, Energy
Dr Susann Brackmann, Partner, Restructuring & Insolvency
Inhouse at Trading Hub Europe GmbH
Sanel Rekic, Head of Legal, HR
Markus Berger, Head of Controlling, Treasury, Procurement
Press Contact
presse@cms-hs.com
