European Commission authorised, on Wednesday 20 May, a German scheme worth €1.3 billion to support the production of hydrogen from renewable energy, under the ‘CEEAG’ guidelines on State aid for climate and energy, applicable since 2022 (see EUROPE 12858/2).
The authorised scheme will support the construction of 1 000 MW of installed electrolyser capacity and the production of 10 million tonnes of renewable hydrogen. These electrolysers will have to supply the ‘Danish Hydrogen Backbone 1’ hydrogen pipeline, a European project of common interest that will transport the gas to buyers connected to the German Hydrogen Core Network.
Granted through the European Hydrogen Bank’s ‘auctions-as-a-service’ mechanism, the aid will take the form of a direct grant per kilogramme of renewable hydrogen produced over a maximum period of 10 years. Beneficiaries will have to prove that they comply with the provisions of the Renewable Energy Directive (2018/2001) relating to the production of renewable fuels of non-biological origin (RFNBO).
The Commission considers that the German scheme is necessary, appropriate, has an incentive effect, and will have a limited impact on competition. (Original version in French by Mathieu Bion)