BAKU, Azerbaijan, April 5. The European
Commission has greenlit a €350 million initiative by Germany aimed
at bolstering the production of renewable hydrogen, Trend reports via the
Commission.
This initiative, facilitated through the innovative
“Auctions-as-a-Service” tool of the European Hydrogen Bank, aligns
closely with the objectives outlined in the REPowerEU Plan and the
European Green Deal Industrial Plan. By facilitating this scheme,
Germany aims to not only reduce its dependence on Russian fossil
fuels but also accelerate the transition towards sustainable
energy.
Key Details of the German Scheme:
Germany formally notified the European Commission of its
proposal to implement a €350 million scheme focused on supporting
renewable hydrogen production through the “Auctions-as-a-Service”
tool within the European Hydrogen Bank. This approved initiative is
poised to bolster the construction of up to 90 MW of electrolysis
capacity, with an anticipated production of approximately 75,000
tonnes of renewable hydrogen. Such efforts align with Germany’s
ambitious target of achieving at least 10 GW of domestic
electrolysis capacity by 2030, contributing significantly to the
EU’s broader goal of reaching a minimum of 42.5% renewable energy
production by the same year, with aspirations of reaching 45%.
Transparent and Competitive Process:
The allocation of aid under this scheme will be conducted
through a rigorous competitive bidding process overseen by the
European Climate, Infrastructure, and Environment Executive Agency
(CINEA). Bidding officially concluded on 8 February, with the
Agency presently engaged in the evaluation and ranking of project
proposals from Member States. Notably, support provided through
this German initiative will be accessible to companies intending to
establish new electrolysers within Germany.
Form and Duration of Aid:
Under this scheme, financial aid will be disbursed in the form
of direct grants per kilogram of renewable hydrogen produced, with
a maximum duration of ten years. Beneficiaries are mandated to
demonstrate adherence to EU criteria governing the production of
renewable fuels of non-biological origin (RFNBOs). This entails
demonstrating a commitment to the deployment or funding of
additional renewable electricity necessary for the production of
hydrogen supported by the scheme.
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