The European Commission has authorized Germany to invest around €3 billion in its hydrogen infrastructure to build long-distance pipelines.
The commission said on Friday that the positive effects of the government subsidies would outweigh the potential damage that could be caused by distortions of competition.
Germany and other countries are investing in hydrogen as a potentially climate-friendly fuel for use in industry and transport.
The European Union generally has strict rules on state aid to companies through direct subsidies or tax benefits.
The rules are intended to ensure that companies from different EU countries can compete fairly within the bloc’s single market.
The European Commission monitors compliance with these rules.
So-called ‘green’ hydrogen, produced with renewable energy from wind and solar power, is intended to replace fossil fuels such as diesel for trucks or coal in blast furnaces for steel production.
The first major pipeline in Germany should be put into operation in 2025 and a complete core network should be ready by 2032.
In concrete terms, companies must be supported in the form of state guarantees, allowing them to obtain favorable loans. This can cover losses expected at the start of the project.
