The world needs stronger commitments and appropriate policies to achieve the goal of being carbon neutral by mid-century laid out in the Paris Agreement on Climate Change. To limit the global temperature increase to no more than 1.5°C, fossil fuels must be eliminated while the application of renewable energy forms that do not pollute the environment must be developed.

According to the assessment of scientists around the world, green hydrogen is the key to promoting efficient energy transition, helping to reduce greenhouse gas emissions according to the goals set by the Paris Agreement. Green hydrogen has high energy content and produces no greenhouse gas emissions; therefore, it is an ideal fuel in energy systems and can be used effectively as an energy carrier, energy storage, and production materials for industries.

In addition to activities to support the development of other renewable energy sources, the German government has implemented a financial support package for businesses applying hydrogen technology in operation and production, and facilities doing research on hydrogen technology.

Goals:

Through this financial support package, the German government aims to develop and expand the size of the global hydrogen market, thereby contributing to reducing the cost of hydrogen infrastructure. In particular, the support program aims to encourage the development and use of hydrogen technology in production, thereby creating a premise for the development of hydrogen trade infrastructure and build capacities in the value chain of this energy source.

Target applicants:

Applicants for the financial support program must be businesses or research institutions headquartered in the EU and must have a permanent establishment in Germany. International consortia are eligible, when the eligible companies (i.e. EU companies or research institutions) bear at least 51% of the added value. Start-ups and small and medium enterprises are particularly encouraged to participate in the program.

Support level:

For projects with the goal to produce or store green hydrogen, businesses can get a non-refundable contribution of up to 30-45% of the eligible cost, which increase up to 40-65% for small and medium enterprises. The maximum funding amount is €15 million per project and per applicant.