Commission approves €41 million German State aid measure to support Uniper Hydrogen GmbH in producing renewable hydrogen

Commission approves €41 million German State aid measure to support Uniper Hydrogen GmbH in producing renewable hydrogen

The European Commission has approved, under EU State aid rules, a €41 million German State aid measure to support Uniper Hydrogen GmbH in producing renewable hydrogen, in Huntorf, Lower Saxony, Germany.

The measure will support Uniper Hydrogen GmbH in the implementation of its ‘CHESS’ project. The project concerns the construction and operation of an electrolyser with a capacity of 30 MW, which will operate with energy from renewable sources. The electrolyser is expected to deliver approximately 2,700 tonnes of renewable hydrogen per year, with the potential for increased capacity in the future. The project is expected to be completed by 2027. The aid will take the form of a direct grant.

The Commission assessed the German measure under EU State aid rules, in particular Article 107(3)(c) of the Treaty on the Functioning of the EU, which enables Member States to support the development of certain economic activities under certain conditions, and the 2022 Guidelines on State aid for climate, environmental protection and energy (‘CEEAG’). The Commission found that the measure is necessary and appropriate to facilitate the production of renewable hydrogen, taking also into account that the beneficiary will disseminate to other market players the knowledge obtained as a result of the CHESS project, which will further facilitate the roll-out of the relevant technology. . At the same time, the measure supports the objectives of key EU policy initiatives such as the EU Hydrogen Strategy and the REPowerEU Plan. In addition, the Commission found that the measure is proportionate as it is limited to the minimum necessary and has a limited impact on competition and trade between Member States. Finally, the Commission found that measure has an ‘incentive effect’, as the beneficiary would not carry out the same relevant investment without the public support. On this basis, the Commission approved the German measure under EU State aid rules.

The non-confidential version of the decision will be made available under the number SA.105083 in the State aid register on the Commission’s competition website once any confidentiality issues have been resolved.

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Commission approves €41 million German State aid measure to support Uniper Hydrogen GmbH in producing renewable hydrogen

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