Germany’s Ministry of Environment, Climate, and Energy is channeling $100 million into its new “ELY” program.
This initiative focuses on establishing local electrolysis plants designed to manufacture renewable hydrogen for regional use, steering the nation toward a comprehensive hydrogen supply network.
Energy Minister Thekla Walker headlines the initiative, underscoring the critical role of green hydrogen in meeting climate targets. A recent statewide survey indicates that demand for renewable hydrogen is rising faster and more significantly than anticipated. Walker accentuates the need to develop local infrastructures instead of solely relying on extensive hydrogen networks. Such strategic planning has led the ministry to dedicate over $100 million to aid regional hydrogen production growth, marking a pivotal step for the industry.
The Federal Network Agency recently approved a nationwide hydrogen core network proposal, sending ripples of international interest. Nevertheless, this network does not cover all regions in Baden-Württemberg, leaving gaps that require immediate attention. Energy Minister Walker emphasizes the need to invest locally and build value chains promptly: “To meet time-sensitive hydrogen demand, establishing immediate local production capacities and value chains is crucial.”
Local electrolysis plants aligned with electricity grid expansions and renewable energy infrastructure are integral to the ministry’s plans. These hydrogen hubs will serve as critical nodes in Baden-Württemberg, ensuring synchronized development of production capacities and energy distribution networks.
Applications for funding will be accepted electronically until May 15, 2025. On March 21, 2025, the Project Management Agency Karlsruhe (PTKA) will host an online consultation. Each project can receive up to $10 million in funding, with small and medium-sized enterprises (SMEs) eligible for a maximum of about $8.25 million per project. The subsidy will cover up to 45% of eligible investment costs, with possible increases of up to 20% for small and 10% for medium-sized enterprises. These hydrogen hubs will form complete hydrogen economies locally and regionally, handling everything from production to distribution for both energy and material uses.
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