Sector News

EU approves €6.9 Billion state aid for 33 hydrogen projects

February 25, 2024
Energy & Chemical Value Chain

In a move to improve the supply of renewable hydrogen and thus reduce dependence on natural gas and contribute to achieving the objectives of the European Green Deal and the REPowerEU plan, the EU Commission has approved a third Important project of common European interest (IPCEI) to support hydrogen infrastructure.

The project, called Hy2Infra, involves 33 projects by 32 companies, including five small and medium-sized companies, from seven member states: France, Germany, Italy, the Netherlands, Poland, Portugal, and Slovakia.

The participating member states intend to provide up to €6.9 billion in public funding, which is expected to unlock additional €5.4 billion in private investments, for a total of over €12 billion.

Hy2Infra will cover a wide part of the hydrogen value chain by supporting the deployment of 3.2 GW of large-scale electrolyzers to produce renewable hydrogen; the deployment of new and repurposed hydrogen transmission and distribution pipelines of approximately 2,700 km; the development of large-scale hydrogen storage facilities with capacity of at least 370 GWh; and the construction of handling terminals and related port infrastructure for liquid organic hydrogen carriers (LOHC) to handle 6,000 t/y of hydrogen.

Participants will also collaborate on interoperability and common standards to prevent barriers and facilitate future market integration, the EU Commission stated. Thus, the IPCEI will support the gradual emergence of an EU-wide hydrogen infrastructure starting from different regional clusters.

Margrethe Vestager, the EU Commission’s executive vice-president, commented: “While the renewable hydrogen supply chain in Europe is still in a nascent phase, Hy2Infra will deploy the initial building blocks of an integrated and open renewable hydrogen network.”

Several projects are expected to be implemented in the near future, with various large-scale electrolyzers expected to be operational between 2026 and 2028, and pipelines between 2027 and 2029. The overall completion of projects is planned for 2029.

The IPCEI Hy2Infra complements the first and second IPCEI on the hydrogen value chain, Hy2Tech and Hy2Use, which focus on the development of hydrogen technologies for end users and hydrogen applications in the industrial sector respectively.

Source: chemanager-online.com

comments closed

Related News

April 14, 2024

Nadja Håkansson appointed Chief Executive Officer of thyssenkrupp Uhde

Energy & Chemical Value Chain

The future CEO of thyssenkrupp Uhde, Nadja Håkansson, has held various management positions at Siemens and Siemens Energy and looks back on over 18 years of national and international experience in the areas of supply chain management, operations, sales and corporate management.

April 14, 2024

Neste and Lotte Chemical team up to scale renewable plastics from used cooking oil

Energy & Chemical Value Chain

Neste and South Korean company Lotte Chemical have partnered on a project to elevate the sustainability profile of chemicals and plastics. The partnership’s ambition is to replace fossil resources with renewable raw materials that offer a lower carbon footprint.

April 14, 2024

EU chemical industry confidence shows upward trend

Energy & Chemical Value Chain

At least the confidence in the chemical sector has been seeing an upward trend and the trade balance is recovering as destocking seems to be coming to an end. Citing projections from the European Central Bank, CEFIC states that the level of inflation is expected to fall from 5.4% in 2023 to 2.3% in 2024.

How can we help you?

We're easy to reach