European Commission approves €3bn German government support scheme for hydrogen core network

The European Commission has approved Germany’s plans to introduce a €3bn ($3.2bn) scheme to support the construction of a hydrogen core network — a necessary green light under the EU’s state-aid rules that aim to prevent market distortion.

The support will take the form of state guarantees that will allow the hydrogen transmission system operators (TSOs) — private companies that will build and operate the network — to obtain loans with below-market interest rates from the government’s KfW development bank, thus decreasing the costs of repurposing existing gas pipelines and building new H2 pipelines and compressor stations.

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Photo : European Commission