Germany

Germany

Provides a €3 billion State aid scheme to develop hydrogen transmission infrastructure

27 Jun 2024

On 21 June 2024, the European Commission approved a €3 billion State aid scheme of Germany to support the development of the Hydrogen Core Network (HCN), a long-distance hydrogen transmission infrastructure for fostering renewable hydrogen use in industry and transport by 2030. The scheme, financed through loans provided by Germany's national promotional bank KfW at below-market rates under a State guarantee, will cover investments in repurposing existing gas pipelines, constructing new hydrogen pipelines, and building compressor stations. The HCN will facilitate hydrogen uptake during its ramp-up phase with lower tariffs. The first pipeline is expected by 2025, with full network completion by 2032, aligning with the EU Hydrogen Strategy and ‘Fit for 55’ goals.

Nature of measure:
  • Incentives
Type:
  • Promotion and facilitation (Investment incentives)
Industry:
  • Services (Electricity, gas, steam and air conditioning supply)
Inward FDI:
No
Outward FDI:
No
Sources: