Commission approves EUR 3 billion German-Dutch State aid for renewable fuel production
Today, the European Commission (Commission) has approved a EUR 3 billion German-Dutch scheme under state aid rules to support the global production of renewable fuels of non-biological origin (RFNBOs), including renewable hydrogen, which will be imported and sold in the EU. The scheme, contributing to the EU Hydrogen Strategy, European Green Deal, and REPowerEU Plan, aims to accelerate the green transition and reduce reliance on Russian fossil fuels. Germany will provide EUR 2.7 billion, and the Netherlands EUR 300 million, to support the construction of at least 1.875 GW of electrolysis capacity worldwide, with aid awarded through competitive tenders planned for 2025. A double auction system will match RFNBO producers, mostly in non-EU countries, with buyers in Germany and the Netherlands, bridging the funding gap between production and purchase prices with State resources.
The initiative builds on Germany’s earlier ‘H2Global’ scheme. The scheme is expected to meet the RFNBO demand of Germany and the Netherlands from 2030 onwards, contributing to the EU’s climate goals by avoiding up to 5.73 million tonnes of CO2 equivalent emissions. The Commission assessed the measure under Article 107(3)(c) TFEU and the 2022 Guidelines on State aid for climate, environmental protection, and energy, finding it necessary, proportionate, and aligned with EU policy objectives.
The non-confidential version of the decision will be made available under case numbers SA.108511 and SA.110056 in the state aid register.
For more information, see the PR.