Germany grants €4.6 billion for full hydrogen supply chain

Germany is poised to invest billions in innovative hydrogen projects, aiming to enhance the production, storage, and transport of this potentially transformative green energy source. The German federal and state governments have allocated a combined €4.6 billion ($4.9 billion) for 23 projects.

“By funding hydrogen projects, we are making a significant step towards a climate-neutral and sustainable economy in Europe and beyond,” stated Economy Minister Robert Habeck in Berlin, according to a ministry statement. Habeck emphasized that a robust hydrogen infrastructure could be crucial for the decarbonization of German industries and the energy sector. He added that hydrogen pipelines will be the lifelines of industrial centers, creating the foundation for climate-neutral growth.

The funded projects span the entire hydrogen value chain, including the production of green hydrogen through electrolysers with a capacity of up to 1.4 GW, powered by renewable energy. They also involve the development of innovative storage solutions capable of safely and efficiently storing up to 370 GWh of hydrogen.

Additionally, the projects include the construction of pipeline infrastructure extending up to 2,000 km to ensure the transport and availability of hydrogen. The initiative will also utilize liquid organic hydrogen carriers (LOHC) for transporting approximately 1,800 tonnes of hydrogen annually.

These 23 green hydrogen projects are part of the third “HyZinfra” wave of the IPCEI Hydrogen (Important Projects of Common European Interest), approved by the EU Commission under state aid law on February 15, 2024.

Funding will also come from the European Union, with businesses involved in the projects expected to invest an additional €3.3 billion. According to the ministry, the total investment will amount to €7.9 billion by 2030.