24 hydrogen production projects will be financed. Its total value reaches 8 billion euros
The European Commission (EC), under the Important Project of Common European Interest (IPCEI) Hydrogen program, approved around 4.6 billion euros in financing for 24 hydrogen production projects in Germany. This is stated in the message from the German Ministry of Economy.
"The Commission's approval is an important milestone for the German Federal Ministry of Economic Affairs and Climate Action in its efforts to expand the hydrogen economy and develop the hydrogen value chain in Europe as a whole," the ministry said.
Financial support is provided to projects along the entire hydrogen value chain, from production to transport, storage and industrial use. The proposed projects will make a fundamental contribution to the implementation of the German National Hydrogen Strategy and to the achievement of the objectives of the EU's environmental, energy and transport strategies.
“The Hy2Infra wave projects are important building blocks for boosting the hydrogen economy in Germany and Europe. I am pleased that the European Commission has now granted approval for state aid. The German government recognizes the importance of strengthening the German hydrogen economy along the entire value chain to enable rapid market growth. Germany and the other participating Member States can now quickly move to the implementation phase with companies,” said Federal Republic of Germany's Minister for the Economy, Robert Habeck.
As the GMK Center previously reported, the decarbonization of the steel industry will continue to be a key topic in 2024. An adequate supply of clean hydrogen and renewable energy at competitive prices will be crucial in this process.
In particular, Europe needs to establish electricity production without the use of fossil fuels. However, large-scale electrolysis to produce green hydrogen requires significant volumes of it.
Current hydrogen prices are around 5 euros/kg, but they need to be much lower to become commercially viable for steel production.
