Multi-billion euro hydrogen funding

Habeck: „Now we start digging and excavating.“

The expansion of Germany's hydrogen infrastructure has received another financial boost. Federal and state governments are distributing grants totaling 4.6 billion euros to 23 companies.

Habeck: „Now we start digging and excavating.“

In Brussels, patience is often required. In the case of „Hy2Infra“, a program for developing the hydrogen infrastructure in the EU, it took four years before the participating German companies could recently receive their funding checks at the Federal Ministry for Economic Affairs. Now, however, there is a sense of momentum among the representatives of the selected 23 projects. The generous public funding being distributed here certainly adds to the optimism. Companies have pledged investments of 3.3 billion euros across the entire value chain. Additionally, a total of 4.6 billion euros in grants are now being provided, with 70% from the federal government and 30% from the states.

„Hy2Infra“ operates in Brussels under the term „Important Projects of Common European Interest“ (IPCEI). Across the EU, the program supports the construction of new hydrogen pipelines totaling up to 2,700 kilometers – Germany alone accounts for 2,000 kilometers of these pipelines. In the German portion of the funding, there is also support for the production of green hydrogen through electrolysers with a capacity of 1.4 gigawatts (GW) and storage of up to 370 gigawatt-hours (GWh). Minister Robert Habeck therefore sees this as „a significant day for Germany's hydrogen economy.“

EU funding aims to solve the „chicken and egg problem“ in the hydrogen sector

The Green Party politician defends the „substantial“ funding by emphasising its strategic importance. He states that the industry's „chicken and egg problem“ must be resolved. The federal funding primarily comes from the Climate and Transformation Fund (KTF), with some also financed through Germany's Recovery and Resilience Plan derived from the EU's Covid-19 recovery fund. The Minister hopes that developing the hydrogen infrastructure will create „a wave of orders for the German industry.“

Habeck's message to the company representatives standing on stage with their oversized funding checks was clear: „And now we start digging and excavating.“ Energy companies familiar with the old natural gas world are primarily tasked with this. RWE alone has received funding commitments of 619 million euros. The Essen-based utility, for example, is constructing a 300-megawatt electrolyser for green hydrogen production at its former power plant site in Lingen, Emsland. Other participants in the „Hy2Infra“ programme include the eastern German gas supplier VNG, pipeline operators Ontras and Open Grid Europe, Thyssengas, the German subsidiary of Gasunie, and EWE.

Minister of Economics Robert Habeck outlines the funded projects, primarily located in the northwest and east of the country (Photo: picture alliance/dpa | Kay Nietfeld).

Even after the launch of the 23 projects, the Ministry of Economic Affairs continues to work on the framework conditions for Germany's future hydrogen market, with an import strategy. And the results of the first tender round for importing green hydrogen products from 2027 have already been made public.