The European Commission has approved the German government’s plan to provide the chemical giant BASF with 134 million euros in aid for the production of green hydrogen.
Germany can thus assist BASF in contributing to the “greening of the chemical value chain and the transport sector,” stated EU Commissioner for Competition Margrethe Vestager in a statement released earlier this week.
– The measure approved today will also help Germany replace fossil fuel-based hydrogen in industries that are difficult to decarbonize and reduce dependence on imported fossil fuels – added Vestager.
The approved aid will be non-repayable and will support the construction and installation of a large electrolysis plant at BASF’s site in Ludwigshafen, which is expected to produce around 5,000 metric tons of renewable hydrogen and 40,000 metric tons of oxygen annually starting in 2025.
BASF will thereby reduce greenhouse gas emissions, and the green hydrogen will be used, for example, by trucks and buses, explains the European Commission.
