The EU Commission approves $1.5 billion in German state funding for green hydrogen.

On Wednesday, the European Commission authorized €1.3 billion ($1.5 billion) in state aid from Germany for the production of renewable hydrogen, aimed at reducing greenhouse gas emissions and reliance on Russian fossil fuels.

The German initiative will utilize the European Hydrogen Bank's Auctions-as-a-Service (AaaS) for an auction that is set to conclude in 2026, according to a statement from the Commission. The approved plan will aid in constructing up to 1,000 MW of electrolyser capacity, facilitating the production of up to 10 million metric tons of hydrogen, which is expected to help prevent as much as 55 million tons of CO2 emissions.

This approval comes at a difficult time for the green hydrogen sector, as Thyssenkrupp Nucera, a German electrolyser manufacturer, has indicated that clients are still postponing investment decisions.