- The European Commission approves 3 billion euros in German state aid for the Hydrogen Pipeline Infrastructure.
- The funding aims to facilitate favourable loans for companies building a 20-billion-euro hydrogen pipeline infrastructure.
- Germany extends the project deadline to 2037, emphasising green hydrogen’s role in reducing industrial emissions.
The European Commission has approved approximately 3 billion euros ($3.2 billion) in state aid from Germany for developing a hydrogen pipeline infrastructure known as the Hydrogen Core Network (HCN). This financial support aims to assist companies in obtaining favourable loans during the initial phase, which will start in 2025.
The Commission justified its decision by emphasising that the environmental benefits of promoting hydrogen adoption outweigh any potential impact on EU competition and trade. Germany’s government agreed on the financing plan in April, extending the project deadline to 2037 and implementing safeguards for investor protection.
Hydrogen is crucial in achieving net-zero greenhouse gas emissions, particularly in heavy industries like steel, chemicals, and refining. The planned 9,700 km (6,000 miles) network of hydrogen pipelines will leverage existing natural gas infrastructure for 60% of its coverage, connecting renewable energy sources in the north with industrial hubs in the south of Germany.
Green hydrogen, produced through electrolysis powered by renewable sources such as wind and solar, will support sectors that cannot easily transition to electricity. Future network operators expect to recoup investments through user fees.
This initiative demonstrates Germany’s commitment to advancing sustainable energy solutions while enhancing its industrial competitiveness in a decarbonised