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.