The European Commission has approved €5bn funding for Germany to reduce carbon dioxide emissions in its industrial production processes through hydrogen, carbon capture, utilisation and storage (CCUS) and electrification.
The funding, approved under EU state aid rules, aims to help companies meet EU Emissions Trading Scheme (ETS) targets and will take the form of two-way carbon contracts for difference, called ‘Climate Protection Contracts’, with a 15-year duration.
The projects supported under the scheme, which will be selected through an open bidding process, will range from the replacement of traditional steel production processes by hydrogen direct reduction processes to fuel switches in the cement and lime sector to electrification in the chemical sector.
To qualify, interventions will need to achieve a 60% emission reduction in three years and a 90% emission reduction by the end of the supported project.
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