The Enterprise Europe Network informs:
20.05.2026
The European Commission has approved a German aid scheme worth €1.3 billion to promote renewable hydrogen. The aim is to accelerate the ramp-up of the hydrogen economy and promote the decarbonization of the industry as well as the energy independence of the EU.
Specifically, the funding is to be provided via the Auctions-as-a-Service instrument of the European Hydrogen Bank , whereby the EU provides a central auction system that member states can use to allocate national funding efficiently and in coordination with EU funding.
The focus of the measure is on
- the development of up to 1,000 MW of electrolysis capacity,
- the production of up to 10 million tons of renewable hydrogen,
- and the potential avoidance of up to 55 million tons of CO₂.
Funding is available for companies that plan to build new electrolysers and feed the hydrogen produced into the "Danish Hydrogen Backbone 1" pipeline. This project connects production sites in the North Sea with consumers in the German hydrogen core network and thus strengthens the European energy infrastructure.
Aid under the scheme will be granted in the form of direct subsidies per kilogram of renewable hydrogen produced for a maximum period of ten years, subject to compliance with EU criteria for renewable fuels.
After examination, the Commission concludes that the scheme
- creates targeted incentives for investment,
- contributes to the development of the hydrogen market
- and at the same time limits distortions of competition within the EU.
The measure is part of the European hydrogen strategy and ties in with key initiatives such as the REPowerEU plan and the Clean Industry Deal. It is intended to help achieve the planned expansion targets for renewable hydrogen by 2030 and support the transformation towards climate neutrality.
Source: European Commission
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