The future
of energy
Our role in the energy transition
Our role
in the
energy
transition
Austria is a key player in the European energy sector and we are proud to be part of it. Thanks to its central location, Austria’s transmission network enjoys outstanding interconnectivity with those of neighbouring countries. For example, our pipeline system in the northwest transports gas to Germany via the WAG (West-Austria-Gasleitung) system of Gas Connect Austria GmbH. In the northeast, we connect to the system of the Slovakian TSO eustream, a.s., in the southeast to Slovenia via Gas Connect Austria GmbH’s SOL pipeline, and in the south to the Italian transmission system operator Snam S.p.A. We are able to transport gas in both directions – from the Slovakian-Austrian border to the Italian border and vice versa against the main flow direction (reverse flow).
As a transmission system operator, we will continue to play a key role in maintaining the security of energy supply in Europe. We are aware of our responsibility towards future generations. While we maintain our current natural gas transportation operations, we are actively shifting towards renewable energy alternatives like hydrogen and biomethane in order to pave the way for a sustainable energy future. It is important to recognise the significant benefits of biogas and biomethane as a renewable energy source and environmental solution. Our existing infrastructure can readily transport biomethane safely and reliably, with only minimal adjustments needed. Biogas and biomethane play a vital role in curbing greenhouse gas emissions while at the same time contributing to waste reduction, agricultural sustainability, job creation and community resilience. For us, the energy transition is more than a buzzword.
We are dedicated to achieving a secure, safe and prospering energy future for all while leaving a minimal footprint and environmental impact
TAG as a pioneer of
the energy transition
We are firmly committed to paving the way for a pan-European green hydrogen future
The “H2 readiness of the TAG pipeline system” project is of critical importance for our domestic energy supply. This project will convert parts of the existing TAG pipeline system, enabling reliable large-scale hydrogen transport. It will then be possible to import low-cost hydrogen from North African production regions to Europe and to supply industrial sites in Austria and Germany with sustainable renewable energy.
The project was submitted by us to the European Commission and was included in the 6th Union list of Projects of Common Interest (PCI) on 28 November 2023. On 8 April 2024, it was announced that our project “H2 Readiness of the TAG pipeline system”, part of the SouthH2Corridor and recognised as the “Hydrogen Corridor Italy-Austria-Germany”, has been granted PCI status by the European Commission.
The addition of hydrogen projects for the first time in a PCI list, which is adopted every two years following extensive stakeholder consultation in regional groups established by the TEN-E regulation, marks a significant advancement, demonstrating Europe’s dedication to establishing a fundamental European Hydrogen infrastructure. This move highlights a decisive shift towards realizing the objectives outlined in the Green Deal. PCI projects benefit from accelerated approval and implementation procedures, as well as, under certain conditions, access to European funding from the Connecting Europe Facility (CEF).
The project is being supported by leading players from the worlds of politics and business, including the Austrian Federal Ministry of Climate Action, Environment, Energy, Mobility, Innovation and Technology (BMK) and many of the companies located along the planned hydrogen corridor. With the aim of developing the required infrastructure as an integral part of the network in a timely manner, we are active members in two initiatives of transmission system operators. These initiatives share information on individual routes, promote their development, and coordinate the routes:
- The hydrogen route of the “SoutH2 Corridor” initiative runs along the pipeline systems of SNAM in Italy and TAG GmbH in Austria and then via the Gas Connect Austria network to Bavaria. For more information on the SoutH2 initiative see www.south2corridor.net
- The hydrogen route of the “SunsHyne Corridor” initiative also runs along the pipeline systems of Snam in Italy and TAG GmbH in Austria, but then continues northwards via Slovakia and the Czech Republic to Germany. For more information on the SunsHyne Corridor initiative see www.sunshynecorridor.eu
The ultimate goal of the two initiatives and routes is to create a transport infrastructure for hydrogen from North Africa across the Mediterranean and into Europe. The intention is to develop the projected demand of transport capacities and provide an infrastructure to ensure the supply of hydrogen.
A major initiative to promote the development of a hydrogen market across the European continent is the European Hydrogen Backbone. This initiative, consisting of 33 European transmission system operators, is working to secure the pan-European supply of hydrogen while at the same time strengthening the existing infrastructure. Together with Gas Connect Austria GmbH, we play an important part in this alliance as representatives of the Austrian energy infrastructure.
Our initiatives for
climate-neutral energy
Hydrogen has numerous compelling benefits: Hydrogen can be easily stored and transported safely in the current domestic pipeline system. Hydrogen production is climate neutral if specific if certain processes are used. It can also bridge the distance and the timespan created by fluctuating production of renewables and inflexible consumption patterns. Additionally, it is an indispensable energy source for high-temperature industrial processes, making it critical for achieving climate goals. Hydrogen as a sustainable energy source will therefore play a key role in the decarbonisation of the economy and the security of domestic supply in the future.
We believe in its great potential and are aiming to transport hydrogen through our pipeline network by early 2030.
There are two possible methods of transportation.
- Blending: A limited quantity of hydrogen is mixed with natural gas in the pipeline system (blending). Once it arrives at its destination, the hydrogen can be withdrawn from the network and used for specific purposes (de-blending).
- Hydrogen backbone: A pipeline system dedicated solely to the transport of hydrogen is built.
Blending is already possible to a limited extent via the existing gas network. In the long term, however, a dedicated hydrogen infrastructure will be needed to meet the growing demand for hydrogen at national and European levels. According to current estimates*, the annual demand for hydrogen in Austria alone will rise to 12 terawatt hours (TWh) by 2030 and to 47 TWh by 2040. It is therefore imperative that we implement the necessary measures and investments to put the technology in place without delay.
Hydrogen:
the future of clean energy
Hydrogen is a key resource for achieving Austrian and European climate targets by gradually converting our domestic energy system from fossil fuels to renewable sources
At TAG, we are strongly committed to developing and adapting the existing infrastructure in Austria and Europe to enable the transportation of hydrogen.
We are a member of the European Hydrogen Backbone (EHB) initiative – and firm supporters of the Southern Corridor with our “H2 readiness of the TAG pipeline system” project. We are also contributing to the creation of a climate-neutral society as an active partner in the SunsHyneCorridor initiative.
Partner for a sustainable energy future
The common goal is to develop a robust transport infrastructure capable of delivering hydrogen from North Africa across the Mediterranean in order to meet Europe's growing demand for hydrogen
10% H2 feasibility study
A low-carbon economy faces serious challenges that necessitate changes to its energy systems. To enable a fast and efficient transition to a low-carbon economy and support the European and Austrian climate and energy strategy, a regulatory framework for natural gas grids has been developed that will allow network operators to contribute to the energy transition (Chapter VI of the methodology pursuant to Section 82 of the Austrian Natural Gas Act 2011 of the 4th period for the TAG GmbH transmission network).
In consideration of the regulatory framework and following consultation with the Austrian regulatory authority E-Control, we decided to conduct an H2 (10%) feasibility study, the design and results of which are described below.
Sustainable energy use
focus on biomethane, CO2 transport and waste heat utilisation
Biomethane
Biomethane, which is also classed as a green gas, is produced by fermentation of organic matter. It has chemical properties similar to those of natural gas and may be transported in both gaseous and liquid form. It therefore has the potential to reduce our reliance on fossil fuels, stimulate local economic growth, and strengthen the circular economy.
The TAG pipeline system can already transport biomethane without requiring adjustments to the infrastructure. Biogas and biomethane are vital for achieving climate protection targets. They also contribute to waste reduction, sustainable agriculture and job creation.
CO2 transport
An effective carbon capture management system offers great potential for decarbonising the economy. This is why we are committed to the development of carbon transport and are looking into potential opportunities for carbon value creation.
Waste heat utilisation
Some of the compressor stations in our gas transport pipelines are powered by gas turbines. This releases waste heat that can be used to generate electricity in waste heat recovery systems. There is already one such system in operation in our TAG system in Weitendorf.
