ESG Post

Sustainable Finance Technology

European Commission approves €1.4 billion state aid for hydrogen value chain technology

The European Commission approved a fourth Important Project of Common European Interest (‘IPCEI’), under EU State aid rules, to support research, innovation and the first industrial deployment in the hydrogen value chain. The project, called ‘IPCEI Hy2Move’, was jointly prepared and notified by seven Member States: Estonia, France, Germany, Italy, Netherlands, Slovakia and Spain.

IPCEI Hy2Move will cover a wide part of the hydrogen technology value chain, by supporting the development of technological innovations, including mobility and transport applications to integrate hydrogen technologies in transport, high-performance fuel cell technologies that use hydrogen to generate electricity with sufficient power to move ships and locomotives, next-generation on-board storage solutions for hydrogen and technologies to produce hydrogen for mobility and transport applications.

The Member States will provide up to €1.4 billion (approx. $1.5 billion) in public funding, which is expected to unlock an additional €3.3 billion (approx. $3.5 billion) in private investments. As part of this IPCEI, 11 companies with activities in one or more Member States, including small and medium-sized enterprises (‘SMEs’) and start-ups, will undertake 13 innovative projects.

The project contributes to the EU’s target of 90% reduction of emissions from the mobility and transport sectors, for the EU to become climate-neutral by 2050. Fostering the use of hydrogen as a fuel will also help achieve the objectives of the European Green Deal, the EU Hydrogen Strategy and the Sustainable and Smart Mobility Strategy.