The German government has allocated €2.8bn ($3bn) in funding to accelerate decarbonisation efforts, with up to five hydrogen-based projects expected to receive a share of the support.

The “climate protection contracts” will be awarded to 15 projects and have been designed to cover the cost gap between hydrogen use and fossil fuels. The selected hydrogen initiatives will use the funding to decarbonise power processes.

Each company will receive their share retroactively, meaning only after companies have achieved their annual greenhouse gas reductions. H2 View understands that the contracts have a term of 15 years and will be adapted to the development of energy and CO2 prices, making them a “hedging instrument for companies.”