HydroHub Fenne
Political framework conditions as the key to the project’s success
At our historic energy site in Völklingen, in the heart of the Saarland industrial region, we have planned a facility for the production of climate-neutral hydrogen (HydroHub Fenne). We have driven the project forward vigorously and made significant upfront investments. However, under the current conditions, it is not possible to realise the project at present. This is because a hydrogen project of this scale requires reliable off-take routes, appropriate risk-sharing, comparable competitive conditions in France and Germany, and an economically viable framework.
Hydrogen can play a major role in the transformation of industry. However, the ramp-up of hydrogen in Germany is proceeding slowly. There are many reasons for this, with the bureaucratic requirements for green hydrogen from Brussels being a key factor. These make many things more complicated and expensive and lead to distorted competitive conditions within the EU. Furthermore, high electricity prices in Germany are a major hurdle. The production of hydrogen via electrolysis is, by its very nature, very electricity-intensive. At the same time, electricity prices in Germany are among the highest in the world. This means that hydrogen projects in Germany are hardly competitive when using domestic electricity.
We are committed to ensuring that Brussels and Berlin change these framework conditions – so that the hydrogen ramp-up and the HydroHub Fenne can be made a success.
The project has been designated an “Important Project of Common European Interest” (IPCEI) by the European Commission. In this context, a grant notification for 100 million euros, funded by the federal and state governments, has been issued. The project has not yet drawn down any of these funds. We are engaged in positive, constructive discussions with the relevant decision-makers regarding the further development or modification of the proposed funding.
