Business · Companies · 15 hrs ago
Germany plans at least €1.5 billion to boost hydrogen projects
Germany’s hydrogen market is developing more slowly than expected, in part because hydrogen still costs more than fossil fuels.
Economy Minister Katherina Reiche has announced a package of measures to encourage companies to use hydrogen and other cleaner production methods.
At least €1.5 billion is planned for industrial hydrogen projects in a funding round scheduled for 2027.
The government would use 15-year contracts to help cover companies’ extra costs when they switch to cleaner production.
Support is also planned for hydrogen-ready power plants and for demand for steel made with low-carbon hydrogen.
The government also aims to expand hydrogen production, infrastructure and imports, while making the fuel cheaper to produce.
The 2027 funding round still needs approval, and its details are being prepared.
Germany plans at least €1.5 billion for hydrogen projects in a 2027 funding round.
Economy Minister Katherina Reiche announced a package of 10 measures to accelerate the hydrogen market.
The package also includes support for converting gas-fired power plants and measures to increase demand for climate-friendly steel.
The ministry said the hydrogen market is developing more slowly than expected and production costs remain well above those of fossil-fuel alternatives.
The funding is part of a wider programme to support industrial shifts to climate-friendly production.
- Who
- Economy Minister Katherina Reiche and Germany’s Federal Ministry for Economic Affairs.
- What
- Germany plans at least €1.5 billion in hydrogen project funding, alongside other measures to support the hydrogen market.
- When
- The package was presented on October 19, 2026. The hydrogen funding is planned for a 2027 bidding round.
- Where
- Germany.
- Why
- The ministry said the hydrogen market is developing more slowly than expected and production costs remain much higher than those of fossil-fuel alternatives.
This story does not have two clearly opposing sides.
Germany completed an earlier funding round, which the ministry said was heavily oversubscribed against a €5 billion budget.
Reiche’s ministry presented a package of 10 measures to accelerate the hydrogen market.
The bidding procedure for the new funding round is due to start.
The first two gigawatts of gas-fired power capacity are due to be put out to tender for later conversion to hydrogen.
A further two gigawatts of capacity are due to be put out to tender for conversion to hydrogen from 2043.
- Hydrogen project funding
- At least €1.5 billion
- Package
- 10 measures
- Industrial funding mechanism
- CO2-difference contracts covering additional costs for 15 years
- Planned hydrogen power capacity
- 4 gigawatts
- Hydrogen network
- More than 500 kilometres in operation in 2025; 2,200 kilometres under development