The European Commission has approved, under EU State aid rules, a €900 million German scheme to support investments in the production of renewable hydrogen in non EU countries, which will be then imported and sold in the EU.
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The scheme, called ‘H2Global', aims at meeting the EU demand for renewable hydrogen that is expected to significantly increase in the coming years, by supporting the development of the unexploited renewable resource potential outside the EU. It will contribute to the EU environmental objectives, in line with the European Green Deal, without unduly distorting competition in the Single Market.
Germany notified the Commission of its plans to introduce a new scheme, ‘H2Global', to support the production of renewable hydrogen in non EU countries, to be imported and sold in the EU. The scheme, which has an estimated budget of €900 million, will run for 10 years starting from the award of the first contract under the scheme.
Renewable hydrogen can be produced through the electrolysis of water with the electricity stemming from renewable sources. Since almost no greenhouse gas is emitted in the production of renewable hydrogen, large reductions in greenhouse gas emissions can occur when renewable hydrogen displaces a fossil fuel or fossil based chemical.
The scheme will be managed and implemented by a special purpose entity named HINT.CO. This intermediary will conclude long term purchase contracts on the supply side (green hydrogen production) and short term resale contracts on the demand side (green hydrogen usage).
The aid will be awarded through competitive tenders. Prices will be determined on the buying and selling side via a double auction model, where the lowest bid price for hydrogen production and the highest selling price for hydrogen consumption will each be awarded a contract. ■
A very active and complex mid-May weather pattern is set to produce numerous areas of severe weather, heavy rain, high winds, and anomalous temperatures through this weekend.