Three billion euros for climate-friendly hydrogen: The EU Commission has given Germany the green light. But how will the infrastructure be financed and when will it go into operation?
The EU Commission is allowing Germany to invest around three billion euros in its hydrogen infrastructure. This will be used to build long-distance pipelines to increase the use of climate-friendly hydrogen in industry and transport, the Brussels authority announced. The positive effects of the aid are greater than the potential damage that could arise, for example, from distortions of competition, according to the Commission.
If the state wants to support a company with money or tax benefits, very strict rules apply in the EU. This is to ensure that competition between competitors is not distorted by the state. The Commission monitors whether these rules are being adhered to. Green hydrogen, produced in particular using renewable energy from wind and solar energy, is expected to play a key role in the future. This is intended to replace fossil fuels such as diesel for trucks or coal in blast furnaces.
The first major line is scheduled to be operational in 2025. A complete core network is scheduled to be ready in 2032. Specifically, companies will be supported in the form of state guarantees that will enable them to obtain cheap loans. This could cover losses that are expected at the start of the project.
The state development bank KfW is to grant loans with interest rates below market rates. “The loans are to be repaid by 2055, with the amount and timing of repayments being adjusted to the expected gradual increase in demand for hydrogen,” said the EU Commission.
Source: Stern
