Germany has scrapped its €350m ($368m) plans for an EU-style renewable hydrogen auction 12 months after announcing the scheme, according to reports.
BNN Bloomberg reported that Germany’s Economy Ministry could not agree on the auction’s terms and conditions with the European Commission due to “very tight specifications.”
The Auction-as-a-Service (AaaS) scheme was set up by the Commission to allow member states to run their own subsidy auctions for green hydrogen production.
Following a similar structure to the EU-wide European Hydrogen Bank (EHB) auction, the national scheme would have provided a fixed premium offering per kg of hydrogen for domestic hydrogen producers.
Having become the first member state to announce plans for an AaaS auction, Germany’s scrapping of the scheme will reportedly see the €350m redirected to other green projects or returned to the federal budget.
Read more: Germany earmarks €350m for EU-style renewable hydrogen auction
In 2023, Robert Habeck, German Federal Minister for Economic Affairs and Climate Action, claimed the new auction would help the nation deliver on its targets – 10GW of hydrogen by 2030.
He added that for policymakers and market participants, the auction represents a “big step” in increasing the availability of renewable hydrogen.
The latest news comes amid a turbulent period for the country’s energy landscape, as Germany faces a snap election following the collapse of its three-party coalition government.
Charles River Associates’ (CRA) Dieter Keller-Giessbach reassured that the country’s hydrogen industry remains robust enough to withstand political upheaval, however.
Read more: German hydrogen robust enough to withstand political upheaval: CRA
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