The industry will also need to grapple with building or sourcing enough clean energy to run these machines. Electrolyzers are extremely power-hungry: The IEA estimates that between 44 and 90 gigawatts of renewable energy will be dedicated to hydrogen production over the next four years. Despite the difficulties, the puzzle pieces have started to come together for the supply of clean hydrogen to...
Hydrogen Subsidies
Germany’s transport ministry has halted the approval of any new hydrogen-related funding in the wake of a nepotism scandal that led to the firing of a department boss. Head of policy Klaus Bonhoff — a former long-standing boss of the National Organisation for Hydrogen and Fuel Cell Technology (NOW) — was sacked by transport minister Volker Wissing last week after previously withheld internal...
Germany’s Federal Ministry for Economic Affairs and Climate Action (BMWK) has allocated €3.53 billion for the country’s hydrogen importing mechanism, H2Global Foundation, to fund future auctions for renewable hydrogen and its derivatives.Illustration only; Archive. Courtesy of Port of Hamburg On February 12, H2Global issued a statement saying that BMWK had provided its subsidiary HINT.CO...
Japan will make a decision on which companies will be in receipt of subsidies from its massive ¥3trn ($20.3bn) fund for clean hydrogen supply by the end of 2024, Japanese newspaper Nikkei reported today (Tuesday). Domestic producers and importers of low-carbon hydrogen are hoping for a slice of the government’s Contracts for Difference-style (CfD) subsidy programme, announced in December, that aims...
TOKYO -- Japan plans to spend 3 trillion yen ($20.3 billion) over the next 15 years to subsidize the production of cleaner hydrogen, aiming to boost cooperation with the private sector to develop a domestic supply chain for the energy source.Hydrogen fuel, which emits only water as a byproduct, is regarded as a next-generation energy source as nations pursue decarbonization. But the cost of hydrogen,...
Introduction This past October, the Biden administration announced $7 billion in subsidies to create seven Regional Clean Hydrogen Hubs. In addition, under the 2022 Inflation Reduction Act (IRA), green hydrogen—hydrogen manufactured with no carbon emissions—will be eligible for a production tax credit of up to $3 per kilogram (kg) produced. These subsidies are part of the administration’s...
About $335m of investment tax credits have been awarded to eight companies for the construction of new hydrogen-equipment factories in the US, according to the US Department of Energy. Five of the awards of the Qualifying Advanced Energy Project Credit, also known as 48C, will go towards the construction of new electrolyser manufacturing facilities, with two allocated for fuel-cell production, and...
Germany’s steel sector may be set for billions of euros in subsidies to switch from blast furnaces to greener options, but the extra costs of hydrogen and electricity will lead to a premium that customers have little incentive to pay. “Production with hydrogen is currently not profitable,” Sebastien Bross, CEO of Salzgitter Mannesmann Handels, told logistics trade journal Deutsche...
Low-carbon hydrogen projects could be under threat due to high interest rates, according to recent analysis by research firm Wood Mackenzie. Interest rates have risen since the so-called “zero-era” following the 2008 financial crash, with 2023 seeing “the most aggressive hiking cycle in 40 years”, WoodMac notes. Meanwhile, structural trends that drive inflation — such as global trade...
(L-R) Lindner, Habeck and Scholz © Juergen Nowak / Shutterstock (L-R) Lindner, Habeck and Scholz © Juergen Nowak / Shutterstock Berlin has agreed plans to subsidise up to 10GW of hydrogen-ready gas power plants and “dismantle” construction and operation barriers for electrolysers. Updated below*.Chancellor Olaf Scholz, Economics Minister Robert Habeck and Finance Minister Christian Lindner...