EUR 1.3 billion German scheme to support the production of renewable hydrogen approved
The Commission has approved a German scheme to support renewable hydrogen projects selected through the European Hydrogen Bank’s “Auctions-as-a-Service” mechanism. The measure will support the deployment of up to 1,000 MW of electrolyser capacity and the production of up to 10 million tonnes of renewable hydrogen, helping to avoid an estimated 55 million tonnes of CO2 emissions. The scheme contributes to the objectives of the Clean Industrial Deal, the REPowerEU Plan and the EU Hydrogen Strategy by accelerating industrial decarbonisation and strengthening Europe’s energy independence.
The aid will be awarded through a competitive bidding process supervised by the European Climate, Infrastructure and Environment Executive Agency (CINEA) and will support projects feeding renewable hydrogen into the Danish Hydrogen Backbone 1 pipeline which is a Project of Common Interest for delivery to off-takers connected to the German Hydrogen Core Network.
The Commission approved the scheme under the 2022 Guidelines on State aid for climate, environmental protection and energy (‘CEEAG’), finding it necessary and proportionate, including sufficient safeguards to limit distortions of competition.
For more information, see the Commission’s PR.