In a surprising move, Germany’s Federal Ministry of Transport has temporarily ceased funding for new hydrogen projects due to potential irregularities in the funding allocation process. This decision puts a pause on Federal Economics Minister Robert Habeck’s ambitious plans to develop hydrogen highways across Germany, a key component of the country’s energy transition strategy.
Projects such as the hydrogen highways, envisioned to stretch 9,700 kilometers from north to south and across all federal states, are crucial for Germany’s transition to cleaner energy. Despite the challenges of missing storage, import terminals, and pipelines, the initiative aimed to lay the groundwork for a future powered by hydrogen. However, an internal memo from State Secretary Stefan Schnorr revealed that new projects would not receive approval for funding unless they present a “material and temporal irrefutability,” requiring state secretary level approval for exceptions.
This halt in funding follows recent actions by Federal Transport Minister Volker Wissing, who relieved a department head of his duties due to a loss of trust, spurred by allegations of improper conduct in the awarding of funds. The controversy centers around possible misconduct involving vacations with a lobbyist friend followed by the facilitation of millions in funding for the lobbyist’s interests.
Moreover, another department head was transferred as part of the ministry’s response to these allegations, which date back to a hydrogen project in 2021. Reports suggest a second case involving 72 million euros in government funding, potentially linked to the dismissed department head’s connections within the hydrogen lobby.
Despite the temporary freeze on new funding, existing hydrogen projects underway will continue as planned, unaffected by the current funding stoppage. This ensures that projects like the ones in Lower Saxony, which recently received a 1.6 billion euro endorsement from Brussels, will proceed. These projects are set to produce a significant portion of Germany’s future electrolysis output, marking a crucial step in the nation’s shift towards sustainable energy sources.
This development occurs amidst growing demands from over 50 economic leaders in Germany for competitively priced green electricity and hydrogen, highlighting the importance of transparent and fair funding practices to support the country’s ambitious energy transition goals.
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