Germany – State supports regional production of hydrogen with 100 million euros

Germany – State supports regional production of hydrogen with 100 million euros

The “ELY” funding program supports the construction of new local electrolyzers with integrated concepts for the production of renewable hydrogen for regional supply.

With the new “ELY” funding program, the Ministry for the Environment, Climate and Energy Sector is supporting the local production of renewable hydrogen through water electrolysis. The aim is to achieve a sufficiently comprehensive supply of hydrogen in the medium term and to ensure the competitiveness of Baden-Württemberg companies.

Regional hydrogen infrastructures ensure competitiveness

Energy Minister Thekla Walker at the start of the funding program, said :

Green hydrogen is a key factor in meeting climate protection targets and is an indispensable part of the energy transition . The nationwide survey we conducted has shown that the demand for renewable hydrogen is increasing faster and is significantly higher than previously assumed,

“It is important that we not only rely on the planned large hydrogen networks, but also build local infrastructures in good time. That is why I advocated in the budget negotiations that we can continue to support the regional hydrogen ramp-up with over 100 million euros. I am very pleased that we have succeeded in launching this funding program.”

Energy Minister Thekla Walker, said:

We are building local hydrogen infrastructures in the country and investing extensively in new local production capacities.

development of local hydrogen hubs

On October 22, 2024, the Federal Network Agency approved the transmission system operators’ application for the nationwide hydrogen core network. This is an important signal for the hydrogen ramp-up, which is also attracting international attention. However, the core network does not cover all regions in Baden-Württemberg and will take time to implement.

The minister, said:

In order to be able to cover necessary and time-critical hydrogen requirements wherever possible, it is necessary to invest in local production capacities now and thus build up the value chains in good time,

Therefore, the Ministry of Energy will in future promote the construction of local electrolyzers with integrated concepts for the production of renewable hydrogen for regional supply. The focus is on the construction of hydrogen hubs in Baden-Württemberg. The electrolyzers and hydrogen hubs are to be built or expanded as far as possible in line with the regional expansion of the electricity grid and the regional expansion of renewable energy plants (RE plants). The parallel construction and expansion is of great importance for the energy transition and the achievement of climate protection goals in Baden-Württemberg.

Further information on the Electrolyzer Funding Programme (ELY) .

The application documents and access to the electronic application system “pt-outline” can be found at the Karlsruhe Project Management Agency: Funding of electrolysers

Figures, Data, Facts

• Applications can be submitted electronically until May 15, 2025.
• An online consultation will be held on March 21, 2025 by the Project Management Agency Karlsruhe (PTKA).
• The maximum funding amount per project is 10 million euros, and for small and medium-sized enterprises (SMEs) a maximum of 8.25 million euros per project.
• The funding rate is up to 45 percent of the eligible investment costs; for small companies, the rate can be increased by an additional 20 percent and for medium-sized companies by 10 percent.
• Hydrogen hubs can create local/regional hydrogen economies. They cover the entire value chain from production, storage and distribution to the energetic and/or material use of hydrogen.

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