The European Commission has approved, under EU State aid rules, a €1.3 billion German State aid scheme to support the production of renewable hydrogen through the European Hydrogen Bank’s “Auctions-as-a-Service” tool for the auction that closed in 2026. The scheme will contribute to the objectives of the Clean Industrial Deal to accelerate the decarbonisation of EU industry, the REPowerEU Plan to reduce dependence on Russian fossil fuels, as well as the EU Hydrogen Strategy.

Germany notified the Commission of its intention to introduce a scheme to support the production of renewable hydrogen through the ‘Auctions-as-a-Service’ tool within the European Hydrogen Bank. The approved scheme will support construction of up to 1,000 MW of installed electrolyser capacity, and the production of up to 10 million tonnes of renewable hydrogen. This is estimated to avoid up to 55 million tonnes of CO2.