EU approves EUR 250 million for hydrogen projects in Hamburg

21 February 2024
Boosts efforts towards climate neutrality and decarbonizing energy supply for industry

The EU has approved EUR 250 million in funds for hydrogen projects as part of the European Commission's Important Project of Common European Interest (IPCEI) scheme. The German federal government will pay 70 per cent of the funds while the City of Hamburg will pay the remaining 30 per cent. The funds will go towards the urban energy company (HEnW) and Luxcara's conversion of the former coal-fired power plant in Moorburg to hydrogen production. Parts of the funds will also go towards Gasnetz Hamburg's construction of a 40-kilometre hydrogen supply network.

Hydrogen to transform energy supply 

"Climate protection and shaping sustainable industry and mobility are major projects for Hamburg," said Dr Melanie Leonhard, Senator for Economics. The two IPCEI projects should accelerate the transformation of the city's energy supply. The 100-megawatt electrolysis plant for hydrogen production is due to start operating in 2026 as part of the "Hamburg Green Hydrogen Hub" (HGHH) project. Gasnetz Hamburg is aiming to provide reliable supply infrastructure for industry's hydrogen needs from 2027 as part of the "Hamburg Hydrogen Industrial Network" (HH-WIN) project. And local industry is expected to save at least 650,000 tonnes of CO2 per year when the first 40 kilometers of the hydrogen network have been completed, Gasnetz Hamburg said. 

Role of public energy companies in energy transition

Germany is involved in 24 of 33 IPCEI projects now underway. EU members require the approval of the EU Commission to obtain public funds for projects of common European interest. Funding for the "infrastructure wave" in the IPCEI Hydrogen, which also includes the HGHH and HH-WIN projects, has been approved. The German government is due to approve the funding and issue the funding notices. "Both projects show the importance of Hamburg's public energy companies for the energy transition," said Jens Kerstan, Senator for the Environment.


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