The European Commission has approved a €200m German state aid scheme to support the production of renewable hydrogen and related synthetic fuels in Canada, for import and sale in Germany and across the European Union (European Commission statement, 15/01/2026).
The scheme is intended to support the construction of up to 300 MW of electrolysis capacity and the production of renewable fuels of non-biological origin (RFNBOs), synthetic gaseous or liquid fuels produced using renewable electricity and CO2. The statement indicated that the €200m budget is expected to unlock an additional €200m in funding from Canada. This aid will be allocated through a competitive bidding process, which is scheduled to conclude in 2027.
“The scheme is based on a double auction system, which brings together RFNBO producers in Canada, and RFNBO buyers in the EU. The companies offering to sell RFNBOs at the lowest price, and to buy RFNBOs at the highest price, will enter into a contractual relationship, with State resources helping to fill the funding gap between the two prices”, according to the European Commission.
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