Europe’s first-of-its-kind agreement signed for large-scale hydrogen storage with Dutch energy infrastructure company Gasunie

• PATRIZIA SE and STORAG ETZEL, a wholly managed operating company of PATRIZIA, have signed option lease agreements with Dutch energy infrastructure company Gasunie for the development of hydrogen storage caverns in the caverns facility in Etzel in Lower Saxony
• Agreement includes an option of storing over 1 TWh of hydrogen¹ and expands the existing cooperation between STORAG ETZEL and Gasunie, who have been conducting one of the largest industrial-scale hydrogen storage pilot tests "H2CAST Etzel" in Europe since January 2023
• "H2CAST Etzel" is designed to prove the feasibility of high-volume hydrogen storage in Etzel's underground caverns under real conditions including the injection and withdrawal of hydrogen and integrity of the storage facility
• This unique agreement with Gasunie - the first of its kind in the European energy industry - is a further step for the transition from fossil to renewable energy in Germany - with potential to become an important part in the future hydrogen energy economy

Augsburg, Groningen, 20 February 2024. PATRIZIA, a leading partner for global real assets, has announced the signing of option lease agreements for the first industrial-scale hydrogen storage between PATRIZIA/STORAG ETZEL, a wholly managed operating company of PATRIZIA, and Dutch state-owned energy infrastructure company Gasunie. According to the agreement, STORAG ETZEL which has been managing large-scale oil and gas storage facilities in underground caverns in Lower Saxony for over 50 years, will develop hydrogen storage caverns. The hydrogen storage pilot project H2CAST Etzel conducted by STORAG ETZEL, Gasunie and other partners since 2022/2023 should prove the feasibility of hydrogen storage in Etzel's underground caverns.

According to the European Union, the potential for hydrogen for our future carbon-neutral energy consumption is significant. Renewable energies could supply a substantial part of the European energy mix in 2050, of which hydrogen could account for up to 20%, notably 20-50% of energy demand in transport and 5-20% in industry. Industrial-scale hydrogen storage is a key prerequisite to compensate for the fluctuations in green energy generation via solar and wind and provide a stable energy supply for our power grids.

Germany's future power plant strategy to serve natural gas power plants that will be H2-ready and converted to hydrogen in the future will generate further hydrogen storage demand, which the cavern field in the Etzel salt dome can supply. The connection of the Etzel storage facility is also part of the planned hydrogen pipeline grid called "Kernnetz" (core hydrogen grid) to mee the future hydrogen demand across Germany.

"The "H2Cast Etzel" pilot project as this new agreement with Gasunie are key to prove that our caverns field is "H2-ready" and can play an important role in securing constant energy supply for Germany and across Europe," said Heiko Süß, Head of PATRIZIA Fund Management Frankfurt. "Our common goal is to demonstrate that we can manage a safe transition from fossil to renewable energy in Germany with the cavern field in Etzel being an important part of a future hydrogen energy economy to meet the increasing energy needs of a carbon-free society and economy."

Scope of hydrogen storage pilot project

The hydrogen storage pilot project called "H2CAST Etzel" comprises the conversion of two caverns into hydrogen storage caverns, the construction of an above-ground facility and a subsequent test and research phase to be completed by end of 2026. The pilot project is funded by the German Federal government and the state government of Lower Saxony with a low double-digit million Euro investment covering more than one third of the total test pilot costs.

The goal of the pilot test is to prove the feasibility of high-volume hydrogen storage in underground caverns with a storage volume on an industrial scale. The test will be conducted under real conditions including the injection and withdrawal of hydrogen in a multicyclic operation mode, the purification of hydrogen gas as well as the proof of integrity of the storage facility.

Future potential of PATRIZIA's caverns storage business

PATRIZIA und STORAG ETZEL as an operating partner have been successfully managing large-scale oil and gas storage facilities in underground caverns for over 50 years. The salt dome encompasses 75 caverns in operation which currently store 3.9 billion cubic meters of natural gas and can store an additional 10 million cubic meters of crude oil.

Etzel underground facility can be build-out to 99 already approved caverns, which is an additional capacity of 24 caverns with the equivalent of approximately five TWhH2. An average natural gas cavern in Etzel has a size of about 0.7 million cubic meters and can store about 1 TWh of energy which is enough to supply 100,000 households with heating and warm water for one year. Due to the lower calorific value of H2, the storage volume required of hydrogen is four times higher than that of natural gas.

PATRIZIA has launched two dedicated caverns funds in 2008 and 2013 respectively. Both funds have a strong track-record of stable and attractive returns for a group of 20 long-term investors. The prospect of transitioning the cavern field in Etzel to a full hydrogen storage facility by 2050 underlines PATRIZIA's commitment to investing in the energy transition and net-zero economies.

PATRIZIA: A leading partner for global real assets

With operations around the world, PATRIZIA has been offering investment opportunities in real estate and infrastructure assets for institutional, semi-professional and private investors for 39 years. PATRIZIA manages approx. EUR 58 billion in assets and employs around 1,000 professionals at 28 locations worldwide. PATRIZIA has been making an impact since 1984 by helping children in need, since 1992 in close collaboration with Bunter Kreis ("colourful circle") in Germany for aftercare of children with severe diseases and since 1999 through its support for the PATRIZIA Foundation. The PATRIZIA Foundation has given more than 600,000 children and young people worldwide access to education, healthcare, and a safe home to get the chance to live a better self-determined life over the last 24 years. You can find further information at www.patrizia.ag and www.patrizia.foundation

Contact

Ed Whittaker
Corporate Communications
Phone: +44 7881 276427
communications(at)patrizia.ag

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