Released October 29, 2025 | GALWAY, IRELAND
en
Written by Martin Lynch, European News Editor for Industrial Info (Galway, Ireland)
Summary
Germany announce major funding for in 2026 for hydrogen projects and carbon capture and storage (CCS) it continues to lead Europe in the rollout of green hydrogen projects and infrastructure
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Germany has announced 6 billion euro (US$7 billion) of funding in 2026 for hydrogen projects, while the government has adopted the Hydrogen Acceleration Act to speed up the rollout of projects and infrastructure.
The pre-bidding process, open until the start of December, is for the next hydrogen auction for carbon contracts for difference (CCfD), and for the first time it is also open to carbon capture and storage (CCS) and carbon capture and utilisation (CCU) projects as well as industrial heat pumps and hydrogen-based processes. It is aimed at hard-to-abate sectors including chemicals, pulp and paper, primary steel, other metals, cement and lime, as well as ceramics, glass, and gypsum.
The Ministry for Economic Affairs and Energy (BMWE) stated that the auction format is "more flexible, more SME-friendly, and more technology-neutral" and during the preliminary phase it will be seeking more feedback from the industry. Industrial Info is tracking 449 hydrogen-related projects in Germany worth more than US$36 billion. Subscribers to Industrial Info's Global Market Intelligence (GMI) Project Database can click here for the reports.
"The CO2 contracts for difference protect companies that invest in low-CO2 production processes against price risks," the Ministry stated. "Both fluctuating CO2 and energy prices as well as cost differences compared to conventional production processes are offset over a period of 15 years.
This makes climate-friendly production processes that are not yet profitable on the free market due to current costs and risks more competitive, and companies gain long-term planning security. The aim of the CO2 contracts for difference is also to promote the market ramp-up of new technologies (e.g. industrial heat pumps, hydrogen applications, CO2 capture and storage systems, storage technologies) and to establish new production processes on the market."
Germany leads Europe in the rollout of new green-hydrogen projects at a time when the region's green-hydrogen dream is failing to match reality. Industrial Info reported earlier this month that Europe will only be able to supply slightly more than half of the green hydrogen it needs to meet its 2030 targets, with only a quarter of announced projects under construction.
Out of 2,840 MW under construction in Europe, 94% of that capacity is located in just eight countries, according to the latest data from Hydrogen Europe, the association representing Europe's hydrogen suppliers. Germany leads with 993 megawatts (MW) under construction. For additional information, see January, 2025, article--Europe's Green Hydrogen Dream Not Matching Reality.
This month also saw Germany adopt the draft Hydrogen Acceleration Act to greatly speed up the development of hydrogen infrastructure. The law covers the entire hydrogen supply chain from production to import, storage and transport. The law covers, among other things, onshore and offshore electrolyzers, import facilities for hydrogen (and its derivatives), hydrogen storage facilities and pipelines. To decarbonize shipping and air transport in particular, it also covers facilities for the production of synthetic fuels. The law stipulates that facilities and pipelines within the scope of the law are in the overriding public interest, giving hydrogen projects special weight in approval decisions. It also sets out clear deadlines, comprehensive digitalization requirements, and accelerated procurement procedures. In addition, the extraction of natural hydrogen will be simplified through legal relaxations in the Federal Mining Act.
Federal Minister for Economic Affairs and Energy, Katherina Reiche said: "The development of the hydrogen infrastructure is a key prerequisite for the hydrogen ramp-up. The current approval procedures are still too slow and bureaucratic. With the Hydrogen Acceleration Act, we are now fundamentally simplifying the procedures, digitizing the processes, and ensuring greater speed. The expansion of the hydrogen infrastructure is in the overriding public interest."
By the Numbers
Industrial Info Resources (IIR) is the leading provider of industrial market intelligence. Since 1983, IIR has provided comprehensive research, news and analysis on the industrial process, manufacturing and energy related industries. IIR's Global Market Intelligence (GMI) helps companies identify and pursue trends across multiple markets with access to real, qualified and validated plant and project opportunities. Across the world, IIR is tracking over 200,000 current and future projects worth $17.8 Trillion (USD).
Summary
Germany announce major funding for in 2026 for hydrogen projects and carbon capture and storage (CCS) it continues to lead Europe in the rollout of green hydrogen projects and infrastructure
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Germany Leads Europe's Green Hydrogen Push
Germany has announced 6 billion euro (US$7 billion) of funding in 2026 for hydrogen projects, while the government has adopted the Hydrogen Acceleration Act to speed up the rollout of projects and infrastructure.
The pre-bidding process, open until the start of December, is for the next hydrogen auction for carbon contracts for difference (CCfD), and for the first time it is also open to carbon capture and storage (CCS) and carbon capture and utilisation (CCU) projects as well as industrial heat pumps and hydrogen-based processes. It is aimed at hard-to-abate sectors including chemicals, pulp and paper, primary steel, other metals, cement and lime, as well as ceramics, glass, and gypsum.
The Ministry for Economic Affairs and Energy (BMWE) stated that the auction format is "more flexible, more SME-friendly, and more technology-neutral" and during the preliminary phase it will be seeking more feedback from the industry. Industrial Info is tracking 449 hydrogen-related projects in Germany worth more than US$36 billion. Subscribers to Industrial Info's Global Market Intelligence (GMI) Project Database can click here for the reports.
Reducing the Risk
"The CO2 contracts for difference protect companies that invest in low-CO2 production processes against price risks," the Ministry stated. "Both fluctuating CO2 and energy prices as well as cost differences compared to conventional production processes are offset over a period of 15 years.
This makes climate-friendly production processes that are not yet profitable on the free market due to current costs and risks more competitive, and companies gain long-term planning security. The aim of the CO2 contracts for difference is also to promote the market ramp-up of new technologies (e.g. industrial heat pumps, hydrogen applications, CO2 capture and storage systems, storage technologies) and to establish new production processes on the market."
Europe's Green Hydrogen Dream Falters
Germany leads Europe in the rollout of new green-hydrogen projects at a time when the region's green-hydrogen dream is failing to match reality. Industrial Info reported earlier this month that Europe will only be able to supply slightly more than half of the green hydrogen it needs to meet its 2030 targets, with only a quarter of announced projects under construction.
Out of 2,840 MW under construction in Europe, 94% of that capacity is located in just eight countries, according to the latest data from Hydrogen Europe, the association representing Europe's hydrogen suppliers. Germany leads with 993 megawatts (MW) under construction. For additional information, see January, 2025, article--Europe's Green Hydrogen Dream Not Matching Reality.
This month also saw Germany adopt the draft Hydrogen Acceleration Act to greatly speed up the development of hydrogen infrastructure. The law covers the entire hydrogen supply chain from production to import, storage and transport. The law covers, among other things, onshore and offshore electrolyzers, import facilities for hydrogen (and its derivatives), hydrogen storage facilities and pipelines. To decarbonize shipping and air transport in particular, it also covers facilities for the production of synthetic fuels. The law stipulates that facilities and pipelines within the scope of the law are in the overriding public interest, giving hydrogen projects special weight in approval decisions. It also sets out clear deadlines, comprehensive digitalization requirements, and accelerated procurement procedures. In addition, the extraction of natural hydrogen will be simplified through legal relaxations in the Federal Mining Act.
Federal Minister for Economic Affairs and Energy, Katherina Reiche said: "The development of the hydrogen infrastructure is a key prerequisite for the hydrogen ramp-up. The current approval procedures are still too slow and bureaucratic. With the Hydrogen Acceleration Act, we are now fundamentally simplifying the procedures, digitizing the processes, and ensuring greater speed. The expansion of the hydrogen infrastructure is in the overriding public interest."
By the Numbers
- $7 billion: Germany's 2026 funding for hydrogen and carbon capture projects
- 449: Number of hydrogen-related projects in Germany worth more than US$36 billion
- 993 megawatts: Amount of German green hydrogen projects under construction.
- Germany's major funding in 2026 for hydrogen projects
- European green hydrogen projects falling behind European Union (EU) targets
Industrial Info Resources (IIR) is the leading provider of industrial market intelligence. Since 1983, IIR has provided comprehensive research, news and analysis on the industrial process, manufacturing and energy related industries. IIR's Global Market Intelligence (GMI) helps companies identify and pursue trends across multiple markets with access to real, qualified and validated plant and project opportunities. Across the world, IIR is tracking over 200,000 current and future projects worth $17.8 Trillion (USD).
