Germany gets EC nod for industrial decarbonisation support scheme

The German government has received the green light from the European Commission (EC) with regard to a EUR-2.2-billion (USD 2.39bn) state aid scheme to support investments in the decarbonisation of industrial production processes.

Under this scheme, Germany intends to provide direct grants to companies investing in the electrification of industrial processes and in enabling the substitution of fossil fuels with renewable hydrogen or renewable hydrogen-derived fuels.

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In order for a project to be deemed eligible for the support, it needs to lead to a reduction of greenhouse gas emissions from production processes of at least 40%, compared to today. The aid will be granted no later than December 31, 2025, and each beneficiary will receive no more than EUR 200 million.

The Commission has approved the measure under the State aid Temporary Crisis and Transition Framework, having determined that it “is necessary, appropriate and proportionate to accelerate the green transition.”

(EUR 1.0 = USD 1.086)