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Germany’s $1bn scheme to subsidise green hydrogen projects in non-EU nations gets green light

By November 22, 2021January 4th, 2022No Comments

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Germany’s $1bn scheme to subsidise green hydrogen projects in non-EU nations gets green light

Dec 22, 2021 • Recharge

European Commission approves Berlin's H2Global initiative, which offers a route to market for large-scale renewable hydrogen facilities around the world

A €900m ($1bn) plan to subsidise green hydrogen production in non-EU countries for import into Germany has been approved under EU state aid rules by the European Commission.

Berlin launched the H2Global scheme earlier this year because it believes that Germany will not be able to produce enough affordable green hydrogen from renewable energy inside its own borders.

The green light from Brussels will be great news for green hydrogen project developers from around the world, as the German scheme offers a route to market for their H2, which is generally more expensive than standard grey hydrogen derived from unabated fossil fuels. But the €900m is only expected to cover about 500MW of electrolyser projects, meaning that competition is likely to be fierce.

Germany has already signed partnerships with Canada, Chile, Japan, Morocco, Saudi Arabia, the United Arab Emirates to co-operate on green hydrogen.

Countries with high solar irradiation and strong winds, or excess hydropower, are expected to be able to produce the lowest-cost green hydrogen, as the more hours per day an electrolyser is in operation, the cheaper the H2 will be. However, the high cost of shipping hydrogen to the EU could eliminate savings made from lower-cost production.

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