The state government has initiated a €45 million funding round, with a significant commitment to advancing green hydrogen projects. The aim? To accelerate the transition to more sustainable energy within Bavaria.
The government’s financial backing is substantial, with €150 million allocated for electrolyzers, €100 million for hydrogen infrastructure, and an additional €20 million dedicated to an H2 filling station scheme. In a bid to boost green hydrogen capacity, Bavaria will shoulder 45% of the electrolyzers’ costs, paving the way for the first round of funding to potentially support up to 100MW of new capacity.
Applications for this initial funding round are open until October 16th, with plans for a second call for funding next year. This move signifies a significant shift in Bavaria’s energy landscape.
However, the transition has been somewhat sluggish in Bavaria due to restrictions on wind turbine locations and an abundance of affordable gas and nuclear energy. These factors have somewhat impeded the state’s journey towards renewables. This delayed transition raises concerns about potential industrial losses to other regions, given that Bavaria boasts a GDP of approximately €610 billion.
In other news, United H2 Limited (UHL) has established a game-changing joint venture with a hydrogen generator manufacturer in Shenzhen, marking a pivotal moment in the global hydrogen market. The agreement grants UHL exclusive global rights to sell hydrogen generators under the brand PWRH2. These generators will offer a substantial power range, from up to 135kW, increasing to 1MW within the next year.
PWRH2 is strategically targeting key markets in Australia, the UK, Europe, and North America. The company is actively seeking off-takers and country-specific distributors and retailers, with plans to begin delivering products in the first quarter of 2024. UHL’s ambitious goal is to reach $500 million in revenues by its third year and take PWRH2 public on a global securities exchange within 24-36 months. This strategic venture aligns with UHL’s larger strategy to expand into targeted markets and prepare for a Canadian Securities Exchange listing in Q4 2023.
PWRH2’s primary focus will be on industries heavily reliant on diesel generators, including oil & gas, mining, construction, agriculture, manufacturing, and remote communities/sites. This venture is poised to redefine the hydrogen generator business landscape.
Meanwhile, RWE, a major energy company, has achieved approvals for constructing and operating two 100MW electrolyzers at its green hydrogen facility in Lingen. Named “GET H2 Nukleus,” this project is part of Germany’s GET H2 network, backed by a consortium of over 50 companies, including BP, Uniper, and ThyssenKrupp.
The approval process, which took a mere seven months, is a positive indicator of Germany’s commitment to the burgeoning hydrogen economy. While the project has been nominated for Important Project of Common European Interest (IPCEI) status by the German government, no funding commitment has been made, and an EU state aid investigation is ongoing.
RWE’s ambitious plans include installing 300MW of electrolysis capacity by 2027. Yet, only 200MW of proton exchange membrane (PEM) electrolyzers have been ordered to date. The delay in funding decisions may have prompted RWE to push back its initial start-up date of 2026.
Presently, RWE is commissioning a pilot 14MW of electrolyzers at Lingen, with both pressurized alkaline and PEM technologies under consideration for future projects. The approval of the Lingen facility marks a significant step towards a hydrogen-powered future in Germany.
