EC clears EUR-260m German aid for hydrogen production, storage

The European Commission (EC) said on Tuesday it has granted its approval, under EU state aid rules, for a EUR-260-million (USD 285m) German scheme to back the installation of electrolysers for the production of renewable hydrogen and hydrogen storage.

The scheme will be financed fully by the Just Transition Fund. It will provide aid in the form of direct grants to companies active in German regions identified under the Just Transition Fund for the construction of green hydrogen electrolysers and hydrogen storage facilities.

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The aid will be granted till the end of 2025 and will involve a claw back mechanism to avoid overcompensation.

According to the EC, the scheme will help accelerate the green transition and is in line with the REPower EU Plan and the Green Deal Industrial Plan.

On Tuesday, the EC also authorised the German government to provide a direct grant of EUR 2.6 billion to help SHS Stahl-Holding-Saar GmbH & Co KGaA partly decarbonise its steel production in Saarland.

(EUR 1 = USD 1.094)