The German state of Baden-Württemberg will support local hydrogen production projects under a new €100m ($105m) subsidy programme.

Electrolyser-based projects built within the state can apply for funding up until May 15, 2025. The maximum funding amount per project is €10m ($10.5m), while small and medium-sized enterprises (SMEs) can secure up to €8.25m ($8.6m) per project.

The funding will reportedly cover up to 45% of eligible investment costs, with small businesses entitled to an additional 20% and medium-sized organisations an additional 10%.

The German Ministry for Environment, Climate and Energy Economy (BMWK) is backing the Funding for Electrolysers (ELY) programme, which will be managed by the Karlsruhe Project Management Agency.

Baden-Württemberg Energy Minister Thekla Walker said a state-wide survey proved “the demand for renewable hydrogen is rising faster,” at a “significantly higher” pace than previously expected.