Germany has earmarked EUR 4.6 billion (USD 5 billion) for 23 hydrogen projects covering the entire value chain, following approval from the European Commission under the IPCEI Hy2Infra package in February.
Economy Minister Robert Habeck, alongside state economy ministers, has issued funding notices, signaling the commencement of these ambitious projects.
The initiatives include plans to establish up to 1.4 GW of hydrogen production capacity from renewable sources, innovative storage solutions capable of holding up to 370 GWh, and the development of around 2,000 km of hydrogen transport pipelines. Additionally, projects involving liquid organic hydrogen carriers (LOHC) aim to transport approximately 1,800 tonnes of hydrogen annually.
Several projects are forming interconnected clusters across state borders, integrating pipeline networks, storage facilities, and generation infrastructure to serve energy-intensive sectors such as steel and chemicals. Moreover, cross-border pipelines linking Germany with neighboring countries like the Netherlands are expected to facilitate future hydrogen imports.
One notable project, the Hamburg Green Hydrogen Hub (HGHH), led by Hamburger Energiewerke (HEnW) in collaboration with Luxcara and Gasnetz Hamburg, will receive over EUR 250 million. This funding will support the construction of a 100 MW electrolyser at the former Moorburg coal-fired power plant site and the initial 40 kilometers of the HH-WIN hydrogen distribution network.
A full list of the 23 projects is available on the economy ministry's website in German.
The funding, partially backed by the German Recovery and Resilience Plan, along with an additional EUR 3.3 billion in investments from participating companies, aims to achieve a total investment volume of about EUR 7.9 billion by 2030.
Minister Habeck underscored the importance of these initiatives, stating, “We are giving the green light for the construction of electrolysers in the three-digit megawatt class, thus enabling important progress in the domestic production of green hydrogen. An efficient hydrogen infrastructure plays a key role in enabling the decarbonisation of industry and the energy sector. Hydrogen pipelines will be the lifeblood of industrial centres. By doing so, we are creating the conditions for climate-neutral growth.”
