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German Aid for Canadian Renewable H2

European Commission approves German Aid for Canadian Renewable Hydrogen

📢 New funding opportunities for hydrogen projects in Canada.

The European Commission has approved a €200 million German State aid scheme to support the production of renewable hydrogen and its derivatives (RFNBOs) in Canada for supply to the EU market.

✅ Key elements of the German support scheme:

📌 Germany notified the Commission of a €200 million support programme, complemented by an additional €200 million in Canadian funding, to enable cost-efficient RFNBO production in Canada.

📌 The scheme aims to incentivise the construction of up to 300 MW of electrolysis capacity through a competitive bidding process, expected to conclude in 2027.

📌 It is based on a double auction model, matching RFNBO producers in Canada with buyers in the EU. Producers offering the lowest supply price and buyers offering the highest offtake price will enter into a contractual relationship with State resources helping to fill the funding gap between the two prices.

📌 Beneficiaries must demonstrate full compliance with EU RFNBO sustainability and certification criteria, as defined in the delegated acts on renewable hydrogen.

📌 The scheme is expected to avoid up to 2.47 million tonnes of CO2-equivalent emissions.

➡️ Source: Commission approves €200 million German State aid for Canadian-produced renewable hydrogen and its derivatives for EU market

Posted By : admin 14 Jan, 2026

Public consultation for bilateral German-Australian H2Global funding window

The German Federal Ministry for Economic Affairs and Energy (BMWE) has launched a public market consultation under the Climate, Energy and Environmental Aid Guidelines (CEEAG) requirements for the German–Australian bilateral H2Global funding window (2030–2041/42).

🗓 Deadline to submit feedback: 16 February 2026

☑️ Why Australia?

In September 2023, Germany and Australia signed a Joint Declaration of Intent as part of their energy partnership. A key element of this cooperation is the development of a joint auction for green hydrogen products, implemented under the H2Global double auction model.

The objective is clear:

support the global market ramp-up of green hydrogen;
provide secure long-term offtake agreements;
send reliable price signals to producers and buyers.

Germany will provide up to EUR 200 million from the Climate and Transformation Fund (KTF). The Australian government, represented by the Department of Climate Change, Energy, the Environment and Water, will contribute an equivalent amount.

As a result, the total support budget of the bilateral H2Global auction amounts to EUR 400 million. Based on the assumption that the auction will focus on renewable ammonia, with production prices in the range of EUR 1,100–1,600 per tonne and expected offtake prices between EUR 500–900 per tonne, this budget could enable the procurement of up to 360,000 tonnes of renewable ammonia.

✅ Why this consultation matters

The international hydrogen ramp-up has been constrained by well-known challenges, such as high production costs for renewable hydrogen and limited willingness to pay on the demand side.

The planned German–Australian auction aims to address these by sharing the “difference costs” equally between both sides.

To properly design the auction and ensure compliance with EU state aid rules, BMWE is conducting this public market consultation and explicitly invites all affected companies to participate.

📄 The questionnaire (in English), outlining the measure and the specific questions, is available via the consultation link.

➡️ Source: Market consultation for the Bilateral German-Australian H2Global funding window

Posted By : admin 28 Dec, 2025

Germany’s national Power-to-Liquid quotas

As part of my research, I closely follow recent developments regarding Germany’s national Power-to-Liquid (PtL) quotas for aviation and would like to share the key updates with you.

🔹 What do PtL quotas mean?

Power-to-Liquids (PtL) refers to liquid hydrocarbons produced using electricity, water, and CO₂ as inputs. Based on these characteristics, PtL quotas cover targets and obligations for hydrogen-based fuels, such as e-SAF for aviation.

🔹 What happened in Germany?

In September 2021, Germany adopted ambitious PtL quotas for aviation through amendments to the Federal Immission Control Act (BImSchG).
These mandatory national quotas required a minimum share of RFNBOs in aviation fuel of:
- 0.5% in 2026
- 1% in 2028
- 2% in 2030.
The basis for adopting such ambitious quotas was the German PtL roadmap for aviation fuels, published in April 2021.
However, these national PtL quotas were more ambitious than those established under the ReFuelEU Aviation Regulation, which introduces a minimum PtL sub-quota only from 2030 onwards.
As a result, the European Commission opposed the German national quotas, emphasizing the binding nature of ReFuelEU Aviation as an EU regulation that replaces national PtL quotas for aviation.

🔹 How was this PtL quota issue resolved?

In October 2024, the German Federal Ministry for the Environment, Nature Conservation, Nuclear Safety and Consumer Protection (BMUV) announced revisions to the national PtL quotas for aviation.
In June 2025, BMUV published the Draft Law for a Second Law on the Further Development of the GHG Reduction Quota (the Draft Law on the GHG Reduction Quota), proposing the removal of national PtL quotas for aviation from the BImSchG.
In December 2025, the national PtL quotas for aviation were formally abolished through the Draft Law on Accelerating the Expansion of Geothermal Energy Plants, Heat Pumps and Heat Storage Facilities, and on Amending Other Legal Framework Conditions for the Climate-Neutral Expansion of Heat Supply.

➡️ The German PtL quota will expire on January 1, 2026.

✅ What’s next?

The PtL quotas for aviation are included in the Draft Law on the GHG Reduction Quota and will be based on the minimum share of e-SAF set out in the ReFuelEU Aviation Regulation.

If you have any questions about PtL quotas, I’d be happy to discuss them.

🔗 The Draft Law: Gesetz zur Beschleunigung des Ausbaus von Geothermieanlagen, Wärmepumpen und Wärmespeichern und zur Änderung weiterer rechtlicher Rahmenbedingungen für den klimaneutralen Ausbau der Wärmeversorgung sowie zur Änderung des Baugesetzbuchs und zur Änderung des BundesImmissionsschutzgesetzes

🔗 Source: Bundesrat beschließt Abschaffung der nationalen PtL-Quote

Posted By : admin 12 Dec, 2025

Updates about RED III and ReFuelEU Aviation in Germany

Updates about Transposition of RED III and ReFuelEU Aviation in Germany

On 10 December, the German Federal Cabinet approved the draft of a Second Law on the Further Development of the Greenhouse Gas Reduction Quota.

This quota, as the central legal instrument for reducing greenhouse gas (GHG) emissions from fuels, shall gradually make refueling more climate-friendly. It specifies the extent to which fuel suppliers must reduce CO2 emissions by using sustainable biofuels, renewable hydrogen-based fuels, or electricity for electric vehicles.

➡️ The Draft of Law is available via this link: Entwurf eines Zweiten Gesetzes zur Weiterentwicklung der Treibhausgasminderungs-Quote

✅ Key Points of the Draft Law:

📌 The draft law implements the amendments to the Renewable Energy Directive (RED III), whose targets must be achieved by 2030. To provide greater investment security, the German government extends the timeline to 2040, going beyond the RED III, to support long-term corporate investment planning.

📌 The law serves to implement the ReFuelEU Aviation Regulation at the national level with regard to fuels.

📌 The draft law includes amendments to the Federal Immission Control Act (BImSchG) and the Regulation on the crediting of electricity-based fuels and co-processed biogenic oils towards the greenhouse gas quota (37th BImSchV).

📌 It introduces definitions of aviation fuel suppliers and distributors, as well as penalties for aviation fuel suppliers that fail to comply with their obligations under the ReFuelEU Aviation Regulation with regard to the share of sustainable aviation fuel (SAF):

EUR 4,700 per tonne for SAF
EUR 17,000 per tonne for synthetic aviation fuels or e-SAF.

📌 It defines the eligibility criteria for e-SAF and renewable hydrogen for aviation.

📌 It establishes minimum shares of RFNBOs for fuel suppliers (excluding aviation fuel suppliers):

0.1% from 2026
0.5% from 2028
1.2% from 2030
1.5% from 2032
2.5% from 2034
4.0% from 2036
5.0% from 2037
6.0% from 2038
7.0% from 2039
8.0% from 2040

☑️ Next Steps:

The law will enter into force on the second day after its publication in the Federal Law Gazette.
The Draft Law must now be submitted to the Federal Council (Bundesrat) and the German Bundestag for debate. Approval by the Federal Council is not required. However, the Bundestag may still introduce amendments.
After adoption by the Bundestag, the law can be submitted to the Federal President for signature and then published.
The legislative process is expected to be completed in the first quarter of 2026.

🔗 Source: Klimafreundlicher tanken, neue Nachfrage für grünen Wasserstoff: Bundesregierung beschließt Gesetzesnovelle zur Treibhausgasminderungs-Quote

Posted By : admin 29 Oct, 2025

Federal Court of Auditors report

📢 Germany Must Revise Its Hydrogen Strategy under the Federal Court of Auditors (Bundesrechnungshof) Report

✅ Main Findings:

📌 The German government considers hydrogen a key pillar of the energy transition, aiming for Germany to become climate-neutral by 2045.

📌 The federal government has already allocated more than €7 billion in funding, mainly as subsidies, for 2024 and 2025. Despite this significant financial commitment, the objectives of the national hydrogen strategy have not yet been achieved.

📌 The Federal Court of Auditors found that both supply and demand for green hydrogen in Germany have not developed as planned. A sufficient hydrogen supply is intended to come from domestic production and at least half from imports. However, the German government will not meet its domestic production targets for green hydrogen by 2030, nor will anticipated import volumes cover the expected demand.

📌 Green hydrogen remains significantly more expensive than fossil fuels such as natural gas. Since competitive production or import prices are not foreseeable in the near future, long-term government subsidies are likely to remain necessary. To bridge the price gap between hydrogen and natural gas, import costs alone could place a burden of €3 to €25 billion on the federal budget by 2030.

☑️ Reality Check

The Federal Court of Auditors recommends that the Federal Government:

review the hydrogen strategy and its current implementation, reassessing whether and when green hydrogen can be made available in sufficient quantities, at competitive prices;
evaluate, as part of this review, the actual contribution the hydrogen economy can make to the energy transition as a whole;
revise the hydrogen strategy to ensure that supply, demand, and infrastructure are developed as synchronously and cost-effectively as possible; and
develop a “Plan B”, if necessary, to achieve climate neutrality by 2045, even without a permanently subsidised hydrogen economy.

➡️ Source: Bundesrechnungshof: Umsetzung der Wasserstoffstrategie stockt: Erhebliche Risiken für Energiewende, Industriestandort und Bundesfinanzen

Posted By : admin 11 Oct, 2025

Preparatory process for the 2026 bidding round of Carbon Contracts for Difference

📢 Germany launches preparatory process for the 2026 bidding round of Carbon Contracts for Difference (Klimaschutzverträge)

On 6 October, the German Federal Ministry for Economic Affairs and Climate Action (BMWK) initiated the preparatory phase for the 2026 bidding round of CO2-Differenzverträge (Carbon Contracts for Difference, CCfDs). Carbon Contracts for Difference are one of the key funding instruments supporting the decarbonisation of energy-intensive industries.

✅ Main purposes of the CCfDs:

📌 CCfDs protect companies investing in low-carbon production processes against price risks. Fluctuations in CO2 and energy prices, as well as cost differences compared to conventional production processes, are compensated over a period of 15 years.

📌 The contracts also aim to accelerate the market ramp-up of new technologies (e.g. industrial heat pumps, hydrogen applications, CO2 capture and storage, and energy storage technologies) and to help establish innovative production processes on the market.

☑️ Eligibility requirements:

📌 Companies are free to decide how to convert their production processes in line with the energy sources used (electricity, low-carbon hydrogen, biomass).

📌 The only requirements are milestones for CO2 savings: 60% from the third year and 90% in the final year of the contract term.

📌 Companies are remunerated based on the actual CO2 savings achieved.

📌 The CCfDs are also open to small and medium-sized enterprises with smaller production facilities.

📅 Schedule:

Participation in the preparatory phase until 1 December 2025 is required for companies wishing to submit bids in 2026.

⚠️ The bidding process remains subject to budgetary approval and state aid clearance by the European Commission.

📘 More information and documentation on the preparatory process are available at https://www.klimaschutzvertraege.info/

➡️ Source: BMWE startet vorbereitendes Verfahren für das Gebotsverfahren 2026 der CO₂-Differenzverträge (Klimaschutzverträge)

Posted By : admin 1 Oct, 2025

Updates to the Hydrogen Acceleration Act

Bundesregierung beschließt Entwurf für Wasserstoff-Beschleunigungsgesetz

On October 1, 2025, the Federal Cabinet adopted the draft Hydrogen Acceleration Act to speed up the development of hydrogen infrastructure and reduce bureaucratic hurdles.

✅ Key highlights:

📌 Covers the entire hydrogen supply chain: production, import, storage, transport, and pipelines.

📌 Includes facilities for synthetic fuels to decarbonize shipping & aviation.

📌 Declares hydrogen infrastructure projects as overriding public interest, ensuring higher priority in approval decisions.

📌 Introduces clear deadlines, digitalized processes, and faster procurement.

📌 Simplifies regulations for natural hydrogen through amendments to the Federal Mining Act.

☑️ What next:

The Bundesrat and Bundestag will deal with the draft law.

➡️ Full draft law available here: Entwurf eines Gesetzes zur Beschleunigung der Verfügbarkeit von Wasserstoff und zur Änderung weiterer rechtlicher Rahmenbedingungen für den Wasserstoffhochlauf und weiterer energierechtlicher Vorschriften

➡️ Source: Aufbau der Wasserstoff-Infrastruktur wird schneller, digitaler und unbürokratischer – Bundesregierung beschließt Entwurf für Wasserstoff-Beschleunigungsgesetz

Posted By : admin 30 Sep, 2025

2nd Call for International Hydrogen Projects

📢 Federal Ministry for Economic Affairs and Energy launches 2nd Call for International Hydrogen Projects.

The Federal Ministry for Economic Affairs and Energy (BMWE), together with the Federal Ministry of Research, Technology and Space (BMFTR), has published the second call for funding under the guidelines for international hydrogen projects. The BMWE thus supports the use of German hydrogen technologies abroad and aims to prepare and implement import routes to Germany.

✅ Key points:

📌 German companies can submit project outlines until 18 December 2025.

📌 Funding supports the development of renewable hydrogen and its derivatives outside Europe, with a focus on industrial-scale production plants and accompanying research (e.g., feasibility studies).

📌 Special emphasis is placed on German SMEs – technology suppliers and project developers – to strengthen expertise abroad and open new markets.

📌 Up to €30 million per project may be granted (subject to budget approval until 2026).

📅 On 13 October 2025, an information event will provide details on funding opportunities and allow participants to ask questions.

➡️ Register here: Förderaufruf zur novellierten Förderrichtlinie für internationale Wasserstoffprojekte

The initiative contributes to shaping a global renewable hydrogen market and securing future import routes to Germany, while showcasing German hydrogen technologies internationally.

➡️ Source: Bundeswirtschaftsministerium veröffentlicht zweiten Förderaufruf der Förderrichtlinie für internationale Wasserstoffprojekte

Posted By : admin 16 Aug, 2025

Carbon Dioxide Storage Act

On 6 August, the German Federal Cabinet approved the Draft Law to amend the Carbon Dioxide Storage Act. The law is intended to enable the use of CCS (carbon capture and storage) and CCU (carbon capture and utilization), as well as the transport and storage of CO2.

📄 Draft Law: Entwurf eines Gesetzes zur Änderung des Kohlendioxid-Speicherungsgesetzes

The Draft Law was developed over the past few months by the Federal Ministry for Economic Affairs and Energy and coordinated with the states, associations, and other ministries.

✅ Key Takeaways:

📌 With this draft law, Germany joins the ranks of countries that aim to use CCS technologies as part of achieving their climate targets.

📌 The law establishes a legal framework for the construction of CO2 pipelines and storage facilities, while ensuring compliance with safety and environmental regulations.

📌 The main provisions include:

Application of the law to the licensing and operation of CO2 pipelines, the licensing and operation of permanent underground storage facilities, as well as the investigation, monitoring, decommissioning, and aftercare of all facilities and equipment related to CO2 storage and transport.
Authorization of CCS facilities for commercial use on an industrial scale on the continental shelf and in the exclusive economic zone.
Exclusion of marine protected areas and coastal waters from CO2 storage.
An opt-in option for federal states to allow onshore storage on the German mainland.
Recognition of the overriding public interest for the construction, operation, and significant modification of CO2 pipelines and storage facilities.
Exclusion of emissions from coal-fired power generation from access to the CO2 pipeline network.
Introduction of regulations to accelerate procedures and approvals for the development of CO2 infrastructure.

➡️ Source: Bundesregierung ebnet den Weg für CO₂-Speicherung und -Nutzung (CCS und CCU)

Posted By : admin 8 Aug, 2025

New draft laws in the Energy Sector

On 6 August, the German Government launched the following drafts of laws initiated by the Federal Ministry for Economic Affairs and Energy:

✅ Abolition of the gas storage levy

📄 Draft of a Fourth Law Amending the Energy Industry Act – Entwurf eines Vierten Gesetzes zur Änderung des Energiewirtschaftsgesetzes

📌 An important initiative from the coalition agreement and the emergency program.

📌 This Draft Law will provide relief for all end customers.

📌 The relief to all end customers will be in the amount of approximately €3.4 billion:

with a levy of €2.89 per megawatt hour, the relief for a four-person household will amount to approximately €30 to €60 per year.
the relief on gas prices will also contribute to a reduction in electricity costs.

✅ Draft Law to Accelerate the Expansion of Geothermal Plants, Heat Pumps, and Heat Storage Facilities

📄 Draft Law: Entwurf eines Gesetzes zur Beschleunigung des Ausbaus von Geothermieanlagen, Wärmepumpen und Wärmespeichern sowie zur Änderung weiterer rechtlicher Rahmenbedingungen für den klimaneutralen Ausbau der Wärmeversorgung

📌 Planning approval procedures for heat pipelines and the construction of large heat pumps will be accelerated.

📌 The approval process for heat storage facilities will be clearly regulated, thereby eliminating uncertainty in practice.

📌 In the future, authorities will be able to require geothermal companies to provide proof of coverage for mining damage as well.

✅ Law Implementing the EU Renewable Energy Directive in the Areas of Offshore Wind Energy and Electricity Grids

📄 Draft Law: Entwurf eines Gesetzes zur Umsetzung der EU-Erneuerbaren-Richtlinie in den Bereichen Windenergie auf See und Stromnetze

📌 Introduction of acceleration areas for offshore wind energy and infrastructure areas for transmission grids, distribution grids, and offshore connection lines.

📌 Streamlined approval procedures are to apply to these areas.

📌 The draft transposes the requirements of the RED III in the areas of offshore wind energy and electricity grids into national law.

✅ Act Amending Energy Industry Law to Strengthen Consumer Protection in the Energy Sector and Amending Other Energy Law Provisions (EnWG Amendment 2025)

📄 Draft Law: Entwurf eines Gesetzes zur Änderung des Energiewirtschaftsrechts zur Stärkung des Verbraucherschutzes im Energiebereich sowie zur Änderung weiterer energierechtlicher Vorschriften

📌 The Draft Law further increases the level of protection for consumers in the energy sector through obligations of electricity suppliers to household customers to hedge against price risks.

📌 The new regulations on “energy sharing” will enable consumers to actively participate in the energy market and the energy transition.

📌 The Draft Law provides for a further acceleration of the smart meter rollout.

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✅ Abolition of the gas storage levy

✅ Draft Law to Accelerate the Expansion of Geothermal Plants, Heat Pumps, and Heat Storage Facilities

✅ Law Implementing the EU Renewable Energy Directive in the Areas of Offshore Wind Energy and Electricity Grids

✅ Act Amending Energy Industry Law to Strengthen Consumer Protection in the Energy Sector and Amending Other Energy Law Provisions (EnWG Amendment 2025)