The European Commission has approved, under EU State aid rules, a €200 million German scheme to support the production in Canada of renewable hydrogen and its derivatives, known as renewable fuels of non-biological origin (RFNBOs). These RFNBOs will be imported to Germany and sold in the EU, contributing to the objectives of the Clean Industrial Deal, the EU Hydrogen Strategy, and the REPowerEU Plan to reduce dependence on Russian fossil fuels and accelerate the clean transition.

“This German scheme will help to meet growing demand for renewable fuels in the EU and support the development of renewable fuel production in our valued trade partner Canada. It builds on the success of the EU-Canada Comprehensive and Economic Trade Agreement, the Strategic Partnership on Raw Materials, and the EU-Canada Industrial Policy Dialogue. The design of the scheme will enable only the most cost-effective projects to be supported, thereby reducing costs for taxpayers and minimising possible distortions of competition.”

Teresa Ribera, Executive Vice-President for Clean, Just and Competitive Transition