Germany Advances Major Hydrogen Plan

Germany's aggressive drive into the growing green hydrogen space continues with the European Commission (EC) approving plans by the government to provide 350 million euro (US$380 million) in state support.

The German scheme will support the production of renewable hydrogen through the "Auctions-as-a-Service'' tool within the European Hydrogen Bank (EHB)--enabling the construction of up to 90 megawatts (MW) of electrolysis capacity that will be capable of producing up to 75,000 tonnes of renewable hydrogen annually. The Auctions-as-a-Service tool lets Member States in the European Union (EU) use the EU-wide pilot auction mechanism of the Hydrogen Bank and allocate a predefined amount of national funding to renewable hydrogen production projects on their territory. The money is awarded in the form of a direct grant per kilogram of renewable hydrogen produced for up to 10 years. Germany wants to have at least 10 gigawatts (GW) of domestic electrolysis capacity by 2030. It will also go toward the EU target of a minimum of 42.5% renewable energy production by 2030, with the aim of reaching 45%.

Germany's coalition government has just agreed on a financing model to support the country's extensive future hydrogen network, which will extend over 9,700 kilometers (km) and cost about 20 billion euro (US$21.6 billion). It is expected that repurposed gas pipelines will account for 60% of the network. The network should be fully operational by 2037, five years later than originally planned. Kerstin Andreae, chairwoman of Germany's utilities association BDEW welcomed the news: "Without a reliable legal framework for financing the hydrogen core network, the start of a hydrogen economy cannot be successful. The agreement between the energy policy spokespersons of the government factions is therefore fundamentally an important step for the hydrogen ramp-up. It is the right decision to leave the construction of the hydrogen core network to the private sector. However, this involves billions in investments. Investors need framework conditions that keep the opportunities and risks in balance."

Last month, Industrial Info reported that Germany's Lower Saxony offered ideal conditions for establishing an advanced hydrogen economy, thanks to its extensive chemical and oil refining history. The state is home to the Central German Chemical Triangle and has a 150-km long pipeline that can be used to supply hydrogen between the three major chemical parks. Industrial Info is tracking 89 active green hydrogen projects with a total value of US$11.75 billion in Germany. Among these, 18 projects, amounting to US$1.91 billion, are planned for development in Lower Saxony.

In February, Germany's coalition government announced plans to subsidize the largest rollout of new gas-fired power plants in Europe, as long as they are ready to run on hydrogen in the future. The plan, which was expected last year, will see tenders launched "soon" for four 2.5-GW gas plants that will receive major financial aid, reportedly in the region of US$17 billion.

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