Germany Unveils Hydrogen Market Acceleration Package: Up to EUR 8.7 Billion in Carbon Contract Authorisations and 4 GW of Power Capacity to Convert
Germany's Federal Ministry for Economic Affairs and Energy (BMWE) on October 19 introduced a package of 10 measures to accelerate the country's hydrogen market. The ministry said the development of the hydrogen market is currently facing major challenges and is being delayed, especially since production costs are still significantly higher than the willingness to pay of many potential application sectors.
On funding, the government will provide EUR 1.5 billion through carbon contracts for difference (CCfDs), which compensate companies for the additional costs of transitioning to climate-friendly production processes, and the envelope could be increased if demand is strong during the preliminary stages of the bidding round. The government draft also provides for up to EUR 8.7 billion in commitment authorisations to finance CCfDs supporting various carbon-reduction technologies, including hydrogen, through to 2050.
On generation, the BMWE plans to incentivise the conversion of power plants to hydrogen by supporting the technical retrofitting of 4 GW of generating capacity: 2 GW to be tendered in 2027, with hydrogen use scheduled to begin in 2040, followed by a further 2 GW to be tendered between 2030 and 2032, with conversion planned from 2043. On transmission, EUR 4.2 billion in public funding will be made available over the coming years to expand the network; more than 500 km of the core hydrogen pipeline network was operational in 2025, while an additional 2,200 km is currently under construction.
The ministry also intends to establish a lead market for low-emission steel for the first time. Under the Offshore Wind Energy Act (WindSeeG), offshore wind turbines must use steel produced with renewable or low-carbon hydrogen, a requirement the ministry says is designed to stimulate hydrogen demand and support the development of the market.
Source: GSM · USA (original Chinese edition)
Photo: 德国一辆氢燃料电池公交车正在加氢，Icke68746 摄，CC0（Wikimedia Commons）
