Commission approves €900 million German scheme to support investments in production of renewable hydrogen

The European Commission has approved a €900 million German scheme, called ‘H2Global', to support investments in the production of renewable hydrogen in non-EU countries, which will be then imported and sold in the EU.

H2Global aims at meeting the EU demand for renewable hydrogen that is expected to significantly increase in the coming years. Also, it will contribute to the EU environmental objectives, in line with the European Green Deal.

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. The producers of renewable hydrogen and hydrogen derivatives (such as ammonia, methanol etc) wishing to participate in the tenders will have to strictly comply with the sustainability criteria, set by the revised Renewable Energy Directive (RED II).

The scheme will run for 10 years starting from the award of the first contract under the scheme.