Billions for green fuels from around the world

20.12.2024

Source: E & M powernews

Germany and the Netherlands may provide up to 3 billion euros in subsidies for the production of hydrogen and synthetic fuels outside the EU.

The governments in Berlin and The Hague want to use this to promote the construction of electrolysers and factories for so-called RFNBOs (renewable fuels of non-biological origin) in countries outside the EU. Among other things, electrolysis plants with a capacity of 1,875 GW are to be built worldwide. The hydrogen produced there and the RFNBOs are then to be exported to Germany and the Netherlands. Germany intends to provide 2.7 billion euros of this, with the Netherlands providing the remaining 300 million.

"These 3 billion will help to meet the growing demand for renewable fuels in the EU by further developing them worldwide," said the Commissioner responsible, Teresa Ribera, in Brussels.
The funds will be auctioned across several regions until the end of 2025. Electrolyser projects with a capacity of at least 5 MW may take part in the auctions.

There is a "double auction" for the RFNBO, which brings together suppliers in third countries and buyers in Germany and the Netherlands. The subsidized supplies combine the suppliers with the lowest prices and the buyers with the highest bids. The subsidies would fill an existing gap.

Producers of synthetic fuels must prove that they comply with the relevant standards in the EU. According to estimates by both governments, the projects supported within the approved budget will lead to savings of 5.73 million tons of CO2 per year.

According to the EU Commission, the subsidies are "necessary and appropriate" to increase the supply of green hydrogen. Without it, the planned investments would not be made, according to a statement from the Commission. Both countries have ensured that the aid only has a "limited impact on trade and competition", according to a communication from the European competition authority, and that there is no overcompensation. The positive effects on the implementation of the European climate targets are therefore significantly greater than the expected impairment of competition.

Author: Tom Weingärtner