The European Commission has approved a €350m German scheme to support the production of renewable hydrogen through the European Hydrogen Bank's “Auctions-as-a-Service” tool. The approved scheme will support the construction of up to 90 MW of electrolysis capacity and is expected to incentivise the production of up to 75,000 tonnes of renewable hydrogen. The aid will be awarded through a competitive bidding process supervised by the European Climate, Infrastructure, and Environment Executive Agency (CINEA) and it will be available to companies planning to construct new electrolysers in Germany. The aid will take the form of a direct grant per kilogram of renewable hydrogen produced, with a maximum duration of 10 years.
The country also plans to pass a financing mechanism for the country's future hydrogen network, extending a deadline for it to be built by five years to 2037 and offering protection for investors in case of bankruptcy. The core network for hydrogen fuel should extend over 9,700 km and cost around €20bn euros, with existing gas pipelines making up 60% of the network.The network plans and details are expected to be passed by the lower house of parliament by mid-April 2024.
Germany aims to have at least 10 GW of domestic electrolysis capacity by 2030 and contribute to the EU target of a minimum of 42.5% renewable energy production by 2030, with the aim of reaching 45%.
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