The hydrogen economy is seen as the key to the energy transition and climate protection. In order to accelerate the development and market ramp-up of hydrogen technologies, both the Federal Republic of Germany and the European Union are supporting numerous projects with targeted funding programs. In this article, we provide an overview of key funding instruments at national and European level
National funding programs in Germany
National Hydrogen Strategy (NWS)
The German government’s National Hydrogen Strategy, which was adopted in 2020, provides the framework for the ramp-up of the hydrogen economy in Germany. It envisages investments of around 9 billion euros by 2030, including 7 billion euros for the market ramp-up in Germany and 2 billion euros for international partnerships.
The objectives include the expansion of electrolysis capacities (10 GW by 2030), the development of hydrogen infrastructure (pipelines, storage facilities) and support for research and pilot projects.
IPCEI Hydrogen – Important Projects of Common European Interest
The IPCEI Hydrogen is a joint European funding instrument with a strong national component. Through the Federal Ministry for Economic Affairs and Energy (BMWK) and the federal states, Germany is funding over 5 billion euros for projects along the entire hydrogen value chain.
Examples: Large electrolyzers, hydrogen transport and distribution, industrial applications (steel, chemicals), hydrogen mobility
Funding via KfW and NOW GmbH
KfW programs: Low-interest loans and investment grants for hydrogen projects (e.g. in the areas of infrastructure, production, research).
NOW GmbH: National Organization Hydrogen and Fuel Cell Technology – coordinates funding calls, e.g. for municipal projects or mobility applications.
European funding programs
Clean Hydrogen Partnership (formerly FCH JU)
The Clean Hydrogen Partnership is a public-private partnership between the EU, industry and research. It funds hydrogen-related research and innovation projects with a budget of around 1 billion euros as part of Horizon Europe (2021-2027).
Funding is provided for, among other things
- Electrolysis technologies
- Fuel cell development
- Hydrogen storage and distribution
- Demonstration projects in industry and transport
Innovation Fund of the EU
The EU Innovation Fund is one of the world’s largest funding instruments for low-carbon technologies. It supports large-scale hydrogen projects, particularly in industry.
Funding priorities:
- Decarbonization of energy-intensive industries with hydrogen
- CO₂-free production of synthetic fuels
- Combination of hydrogen with CCS/CCU
Connecting Europe Facility (CEF)
The CEF promotes the cross-border expansion of hydrogen infrastructure, particularly in the transport and energy sector. This also includes green hydrogen pipelines or H₂ filling stations along important corridors.
Conclusion
The transformation to a hydrogen-based economy is hardly possible without targeted public funding. Whether research, infrastructure, production or application – a wide range of programs are available at both national and European level to implement innovative projects.
