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Germany grants $5bn to 23 hydrogen projects

The funding from Germany's federal government along with company-level investments amounts to a total volume of EUR 7.9bn by 2030.

Germany has granted $5bn to 23 hydrogen infrastructure projects.

The projects can be viewed here.

The funded projects cover the entire hydrogen value chain:

  • The production of green hydrogen by electrolysers with up to 1.4 GW of hydrogen production capacity powered by renewable energy.
  • Innovative storage solutions for hydrogen, for efficient and safe storage of up to 370 GWh .
  • Pipeline infrastructure of up to 2000 km in length to ensure the transport and availability of hydrogen.
  • The use of liquid organic hydrogen carriers (so-called “LOHC”) for the transport of around 1,800 tonnes of hydrogen per year.

A particular focus is on the interaction of individual projects, the German Ministry for Economic Affairs and Climate Action said in a news release. Several projects are forming cross-state clusters of pipeline, storage and generation infrastructure with connections to industrial customers in energy-intensive sectors such as the steel and chemical industries. Other projects are intended to enable pipeline-based hydrogen imports to Germany in the future by connecting pipelines from neighboring countries (such as the Netherlands). The IPCEI pipeline projects are also an important building block for the hydrogen core network, which will enable the rapid and cost-efficient development of the hydrogen transport network in Germany by 2032.

Part of the funding of EUR 4.6 billion is supported by the German Recovery and Resilience Plan (DARP), which is financed from funds from the European Union’s NextGenerationEU Recovery and Resilience Facility. The companies themselves are investing an additional EUR 3.3 billion. Including funding from the federal and state governments, the total investment volume by 2030 will therefore be around EUR 7.9 billion. With the IPCEI -Hy2Infra-Wave, the federal government is underlining its commitment to a sustainable and climate-friendly restructuring of the energy supply. The funding of the IPCEI -Hy2Infra-Wave projects is part of the National Hydrogen Strategy, which was updated by the federal government in 2023. In addition, an import strategy for hydrogen and hydrogen derivatives is to be adopted soon. This is intended to provide orientation and clarity about the overarching goals and framework conditions, the German import demand for hydrogen and derivatives, and the establishment of hydrogen partnerships and import corridors.

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