Germany – Funding for regional hydrogen production enters its second round – further 50 million euros
Applications for funding of hydrogen production projects can be submitted starting today. A further 50 million euros are available in the second phase of the funding program.
Strengthens the economy and the resilience of the energy supply
With this funding initiative, the state government is continuing the development of regional hydrogen infrastructure and clearly committing to hydrogen.
Energy Minister Thekla Walker, says:
The ramp-up of hydrogen is of central importance for strengthening our economy and a successful energy transition,
“The use of hydrogen can also make a significant contribution to the resilience of our energy supply, serves to build and maintain added value in Germany and Baden-Württemberg, and represents an important international key technology.”
Delays at the federal level – action in Baden-Württemberg
The development of a local hydrogen infrastructure is particularly important in light of the delays at the federal level:
Walker, says:
The federal government still hasn’t presented a final power plant strategy.
”This continues to cause uncertainty. Instead, it’s been announced that power plants will run on natural gas until at least 2040, but mostly until 2045, and only then switch to hydrogen. This approach won’t lead to a rapid ramp-up of the hydrogen economy. It’s all the more important, therefore, that we in Baden-Württemberg do our homework and ensure that hydrogen is produced locally.”
Focus on local hydrogen hubs
Last December, Energy Minister Walker presented the first grant agreements to eight projects within the funding program. Today, the program enters its second phase. An additional 50 million euros will support the development of local hydrogen hubs. Hydrogen hubs are local ecosystems where hydrogen production, distribution, and use are located close together. Where connection to a hydrogen network or a hydrogen hub is not possible, a company that relies on hydrogen can establish its own supply by operating its own electrolyzer.
Cornerstone of the energy system
Hydrogen is versatile and can be produced from renewable electricity and water through electrolysis. It allows surplus electricity from solar and wind power plants to be stored across seasons and made available when needed. Local hydrogen production is a crucial pillar of the energy system. With careful site selection and grid-friendly operation of the electrolyzer, the electricity grid can be relieved by absorbing surplus electricity, thus providing ancillary services.
Energy Minister Walker, explains:
That’s why the parallel development and expansion of electricity grids, renewable energy plants, and electrolyzers is so important for the energy transition and achieving climate protection goals in Baden-Württemberg,
Facts and Figures
- Applications can be submitted electronically until May 18, 2026
- On March 20, 2026, there will be an online consultation by the project sponsor Karlsruhe (PTKA).
- The maximum funding amount is 10 million euros per project, 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 an additional 10 percent.
- Hydrogen hubs can enable the development of local/regional hydrogen economies. They encompass the entire value chain, from the production, storage, and distribution of hydrogen to its energetic and/or material use.
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Germany – Funding for regional hydrogen production enters its second round – further 50 million euros, source
