EU clears €1.3 billion German renewable hydrogen project
The European Commission has approved a €1.3 billion German state‑aid programme to boost renewable hydrogen production across the bloc. The scheme will finance up to 1,000 MW of electrolyser capacity, targeting the creation of as much as 10 million tonnes of renewable hydrogen and an estimated avoidance of 55 million tonnes of CO₂.
Funding will be allocated through the European Hydrogen Bank’s “Auctions‑as‑a‑Service” mechanism, with direct grants paid per kilogram of hydrogen produced for up to ten years. Developers receiving support are expected to connect output to Denmark’s Hydrogen Backbone 1 pipeline and Germany’s Hydrogen Core Network, reinforcing a cross‑border hydrogen market.
The programme supports the EU’s broader climate and energy objectives, including REPowerEU and the EU Hydrogen Strategy, aimed at reducing reliance on imported fossil fuels and achieving climate‑neutrality by 2050.