The European Commission has approved a new €900m ($1bn) German scheme that aims to support investments in hydrogen production from renewable energy sources.
Unveiled today (Dec 20), the H2Global scheme aims to meet the rising EU demand for hydrogen with it set to increase rapidly in the near future.
With this in mind, the H2Global scheme will support the development of unexploited renewable resource potential outside the EU, running for ten years, and will boost the global hydrogen value chain.
With Germany putting forward the scheme to the European Commission it could see several regions of the world see significant developments for its hydrogen capabilities.
For example, Germany has made a major focus on hydrogen production within Northern Africa this past year and, as part of the new scheme, these nations could see additional financial support to increase its renewable energy projects to bolster hydrogen production.
The financial aid will be awarded through competitive tenders with prices determined on the buying and selling side via a double auction model, where the lowest bid price for hydrogen production and the highest selling price for hydrogen consumption will each be awarded a contract.
Margrethe Vestager, Executive Vice-President of the European Commission, said, “This €900m ($1bn) German scheme will support projects leading to substantial reductions in greenhouse emissions, in line the EU’s environmental and climate objectives set out in the Green Deal.
“It will contribute to addressing the increasing demand for renewable hydrogen in the Union, by supporting the development of this important energy source in areas of the world where it is currently not exploited with a view to importing it and selling it in the EU.
“The design of the scheme will enable only the most cost-effective projects to be supported, reducing costs for taxpayers and minimising possible distortions of competition.”
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