The German state of Baden-Württemberg will support local hydrogen production projects under a new €100m ($105m) subsidy programme.
Electrolyser-based projects built within the state can apply for funding up until May 15, 2025. The maximum funding amount per project is €10m ($10.5m), while small and medium-sized enterprises (SMEs) can secure up to €8.25m ($8.6m) per project.
The funding will reportedly cover up to 45% of eligible investment costs, with small businesses entitled to an additional 20% and medium-sized organisations an additional 10%.
The German Ministry for Environment, Climate and Energy Economy (BMWK) is backing the Funding for Electrolysers (ELY) programme, which will be managed by the Karlsruhe Project Management Agency.
Baden-Württemberg Energy Minister Thekla Walker said a state-wide survey proved “the demand for renewable hydrogen is rising faster,” at a “significantly higher” pace than previously expected.
“It is crucial that we do not rely solely on planned large-scale hydrogen networks but also build local infrastructures in a timely manner,” Walker added.
“That is why I have advocated in budget negotiations for continued support of regional hydrogen expansion with over €100m. I am very pleased that we have successfully launched this funding programme.”
The Minister emphasised that since the German hydrogen core network will not cover the entire state and will take time to become operational, “it is crucial to invest in local generation capacities now and build value chains.”
Germany’s 9,000km hydrogen gamble: Will the Wasserstoff-Kernnetz pay off?
“We are creating security for everyone involved – from hydrogen producers at home and abroad to the operators of power plants and storage facilities and future industrial users.”
That was the message from German Vice-Chancellor and Minister for Economic Affairs and Climate Protection, Robert Habeck, when his government’s plans for a 9,040km ‘Wasserstoff-Kernnetz’ or hydrogen core network (HCN) were approved by the Federal Network Agency (BNetZA).
The HCN will cover the width of the country, resulting in a feed-in capacity of 101GW of hydrogen and a feed-out capacity of 87GW. Expected to complement the nation’s ambitious hydrogen production and import strategy, the network will connect import terminals to industrial hubs located throughout the country.
It’s a mammoth ambition. In many ways, enabled not only by the aspirations of the German Government, but also by EU regulations. The European Council which adopted the Hydrogen and Decarbonised Gas Markets Decarbonisation Package last May.
Under this European Union (EU) framework, the package covers transmission, storage and distribution, introducing a regulated third-party access regime in January 2033.
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