Germany aims to invest 33 billion Euros in hydrogen projects

31 May, 2021

The German Federal Ministry of Economics and Technology and the German Federal Ministry of Transport today selected 62 large-scale hydrogen projects to receive government funding as part of a joint European hydrogen project (known as Hydrogen IPCEI – Important Projects of Common European Interest). They are thus implementing an important measure of the National Hydrogen Strategy.

Federal Economics Minister Altmaier said: “We want to become the world’s number 1 in hydrogen technologies. To achieve this, we are joining forces in Europe and initiating massive investment in the future technology of hydrogen through the first joint European hydrogen project. This will secure competitiveness and jobs  in Germany as well as in Europe. We are providing over 8 billion euros in federal and state funding for the 62 German projects selected today, and the projects cover the entire value chain from hydrogen production and transport to applications in industry. We are thus taking a major step towards climate neutrality in our economy. A key area for this is the steel industry as well as the chemical industry, where several million tons of CO2 can be saved each year through these hydrogen projects.”

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Federal Transport Minister Scheuer said: “We are making Germany a hydrogen country. In doing so, we are rethinking mobility, European-wide and holistically from the energy system and drive technologies to the refueling infrastructure. At present, transport is still more than 95 percent dependent on the use of fossil fuels. That’s why we urgently need mobility that relies on renewable energies. Green hydrogen and fuel cells across all modes of transport  are a super complement to battery only vehicles. The fact is: we urgently need and WANT to push the transition to climate-friendly mobility. To cover all areas of mobility with zero-emission solutions, we need openness to technology. That’s why we also support fuel cell technology as well as vehicle and component manufacturers, so that we don’t miss the boat internationally. Today we are taking a giant step towards climate-friendly mobility.”

More information on the 62 hydrogen projects:

The €8 billion in government funding is made up of federal and state funds. Around €4.4 billion comes from the Federal Ministry of Economics; up to €1.4 billion from the Federal Ministry of Transport. The remaining funding will be provided by the federal states. In total, investments of 33 billion euros are to be triggered, of which over 20 billion euros will come from private investors. The 62 large-scale hydrogen projects were selected from over 230 project outlines received that represent the entire value chain of the hydrogen market.

In the area of the BMWi, 50 project outlines were selected. Among them are project outlines for generation plants, which together comprise more than 2 gigawatts of electrolysis capacity for the production of green hydrogen. This corresponds to 40% of the target of 5 gigawatts by 2030 set in the National Hydrogen Strategy. In addition, we are thinking about the infrastructure from the outset and want to advance hydrogen pipelines with a length of around 1,700 km. A particularly large number of emissions can be saved in the CO2-intensive steel industry. With ArcelorMittal, Stahl Holding Saar, Salzgitter Stahl and Thyssenkrupp Steel, all steel producers operating in Germany have submitted investment projects. A number of innovative projects in the chemical industry, e.g. by BASF at the Ludwigshafen site, also show enormous reduction potential through the CO2-free production of hydrogen and its further use, e.g. for the production of ammonia or synthetic fuels for truck or air traffic.

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The German Federal Ministry of Transport is funding 12 projects in the mobility sector. These concern the development and production of fuel cell systems and vehicles from passenger cars and trucks to municipal vehicles. In addition, funding is to be provided. For example, for the development of a nationwide and cross-border networked hydrogen refueling infrastructure. A joint project in Hamburg will also address aviation and the maritime sector with a holistic approach: from fuel cell vehicles for port logistics or the H2 push boats in the Port of Hamburg to H2 vehicles starting with intralogistics at Airbus. With such integrated real laboratories, which are being set up on site, fuel cell technology is being advanced and put into use.

The German projects are being funded as part of a European project (IPCEI Hydrogen) together with up to 22 European partner countries. The various national projects are to be networked in such a way that all countries benefit from each other and a European hydrogen economy can be established jointly. The initiative was launched by German Economics Minister Altmaier in December 2020 as part of the German EU Council Presidency. The aim is for the projects to be approved by the European Commission under state aid law before the end of this year. To this end, the BMWi and BMVI are working closely and in a spirit of trust with the European Commission.

An overview of the hydrogen projects in Germany can be found here: bmwi

Source: BMWi