EU approves €1.3 billion German aid package for renewable hydrogen

The European Commission has approved €1.3 billion in German state aid aimed at boosting renewable hydrogen production and advancing the European Union’s climate goals.

“This investment in renewable hydrogen production is a step towards Europe’s decarbonization goals,” said EU competition chief Teresa Ribera on May 20, Caliber.Az reports per German media.

“The scheme will increase the supply of clean hydrogen and also support the building of cross-border infrastructure to connect production in the North Sea with industrial users elsewhere,” said the EU commission vice president.

According to the European Commission, the subsidies are intended to “support construction of up to 1,000 MW of installed electrolyser capacity, and the production of up to 10 million tonnes of renewable hydrogen. This is estimated to avoid up to 55 million tonnes of CO2.”

The aid will be disbursed in the form of grants over a period of up to 10 years.

EU state aid rules are tightly regulated to maintain fair competition across member states, ensuring that companies in economically stronger countries do not gain an unfair advantage over those in less affluent regions.

In a separate decision on May 20, the Commission also approved €288 million in subsidies for two semiconductor manufacturing projects in Germany.

Under the plan, Carl Zeiss will receive €222 million to build a facility producing equipment used in semiconductor manufacturing, while Zadient Materials Europe will receive €66 million to construct a plant for semiconductor source materials.

By Sabina Mammadli