The European Commission has approved a EUR1.3bn German State aid scheme to support the production of renewable hydrogen through the European Hydrogen Bank's “Auctions-as-a-Service” tool (EU Commission press release, 20/05/2026).
The approved scheme will support construction of up to 1 GW of installed electrolyser capacity and the production of up to 10 Mt of renewable hydrogen, which should avoid the emission of up to 55 MtCO2. The aid will be awarded through a competitive bidding process supervised by the European Climate, Infrastructure, and Environment Executive Agency (CINEA).
Specifically, the aid is directed to companies that plan to construct new electrolysers connected to feed the Danish Hydrogen Backbone 1 pipeline (a Project of Common Interest) and deliver to the German Hydrogen Core Network. Selected companies should also be supported for the development of the cross-border infrastructure necessary for their projects. Awarded projects will receive a direct grant per kilogram of renewable hydrogen produced, for a maximum duration of ten years.
The European Hydrogen Bank is an initiative to facilitate EU-domestic production and imports of renewable hydrogen in and to Europe.
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