Germany shortlists 62 hydrogen projects with 2 GW capacity for IPCEI state aid

Germany has shortlisted 62 hydrogen production and infrastructure projects as Important Projects of Common European Interest (IPCEI), the energy ministry said May 28.

IPCEI status would remove potential conflicts with EU state-aid rules, clearing the way for Eur8 billion ($9.6 billion) of national subsidies with the ministry hoping to clear projects before the end of this year.

The projects were selected from 230 proposals, covering the whole value chain from electrolyzers to pipelines.

"We have taken a big step on the way to climate neutrality for our economy with several million tons of CO2 to be saved by these projects especially in the steel and chemical industry," Energy Minister Peter Altmaier said.

The energy ministry has selected 50 projects including electrolyzer projects with a combined capacity of over 2 GW, and hydrogen pipelines with a length of 1,700 km.

The transport ministry selected a further 12 projects in the mobility sector for development and production of fuel cell systems and vehicles as well as refueling infrastructure.

RWE involved in three projects

RWE said three projects it is involved in were shortlisted with over 400 MW electrolyzer capacity proposed at Lingen (300 MW), Rostock (100 MW) and offshore Heligoland (28 MW).

It expected funding decisions to be released in spring 2022 with matchmaking across Europe to start June 8.

"Together with partners, RWE is currently forging ahead on 30 hydrogen projects [across Europe]," according to RWE's head of hydrogen, Sopna Sury.

Meanwhile, Vattenfall said its proposal for a 100 MW electrolyzer at the former coal plant Hamburg-Moorburg was shortlisted.

All steel companies active in Germany (ArcelorMittal, Stahl Holding Saar, Salzgitter Stahl and Thyssenkrupp Steel) presented proposals.

These, such as BASF's proposal for the Ludwigshafen chemical site, showed some of the biggest potential to reduce emissions, the statement said.

The government aimed to achieve formal EU state aid clearance for selected projects before the end of this year.

In addition to the state aid consisting of Eur4.4 billion from the energy and economy ministry, Eur1.4 billion from the transport ministry and Eur2.2 billion from states, the projects would trigger some Eur33 billion in private investment, the ministry said.

S&P Global Platts assessed the cost of renewable hydrogen (PEM electrolysis with capex) at Eur5.25/kg on May 27, more than double the cost of natural gas-derived hydrogen with CCS (Netherlands TTF MA gas, SMR with CCS, capex) at Eur2.16/kg.

SELECTED GERMAN HYDROGEN PROJECTS FROM IPCEI SHORTLIST

Source: BMWi; S&P Global Platts, developers