On Monday 3 October the European Commission approved a €134 million German support measure to help BASF SE produce renewable hydrogen, with the aim of decarbonising its chemical production processes and promoting the use of hydrogen in the transport sector.
The decision follows the approval of two important projects of common European interest (IPCEI Hy2Tech and Hy2Use) in the hydrogen value chain (see EUROPE 13026/14).
BASF’s project was selected by Germany after an open call for participation in an IPCEI in the field of hydrogen technologies and systems, which resulted in the two approved IPCEIs. However, given its characteristics and objectives, it was more suitable for assessment under the Guidelines on State aid for climate, environmental protection and energy 2022.
The aid, which will take the form of a direct grant, will support the construction and installation of a large-scale electrolyser at BASF’s Ludwigshafen site, which will have an annual production capacity of 54 MW and will produce around 5,000 tonnes of renewable hydrogen and 40,000 tonnes of oxygen per year. The electrolyser is envisaged to start operating in 2025.
The project is expected to avoid the release of 565,305 tonnes of carbon dioxide into the atmosphere over the 15 years of expected operation of the electrolyser. (Original version in French by Lionel Changeur)