Robert Habeck, the German Federal Minister for Economic Affairs, has distributed an enormous twelve billion euros in subsidies to companies for advancing hydrogen production.
This significant financial assistance is part of a growing effort to push for a green energy transition in Germany, aiming to boost the emerging hydrogen sector. However, such state-driven financial support has sparked debates on its efficiency and necessity.
The funds since 2022 have been distributed across 46 projects involving 31 companies. The largest beneficiary is Thyssenkrupp, receiving two billion euros. Other companies such as BASF, Bosch, EWE, and Sunfire also gained from these subsidies to foster hydrogen technology and infrastructure.
Veronika Grimm criticized the extensive state involvement through these subsidies. She argues that political decisions have resulted in substantial financial aid dissemination through various programs, which can often miss the intended targets. Grimm suggests a different approach, advocating for decreased political intervention in economic markets. Her concern is whether these projects will sustain their momentum in Germany once subsidies cease.
The results of these financial efforts raise questions. For instance, despite receiving significant funding, Thyssenkrupp plans to cut thousands of jobs, casting doubt on the efficacy of such public investments. This situation has led to criticisms and skepticism about whether such substantial expenditures are justified and productive.
