More Stimulus Money for EVs, Charging Infrastructure and Green Hydrogen

• Doubling EV subsidies
• Expanding charging infrastructure
• Nine billion euros for green hydrogen

With Germany’s strong push to switch from fossil power sources to renewables, the country is laying the cornerstone for a future-oriented, green industrial foundation.

Doubling EV subsidies

Not only has the government’s cash incentive for buying purely electric cars been raised from EUR 3,000 to EUR 6,000, the state is also creating a “Bus and Truck Fleet Modernization Program” open equally to private and municipal operators. In order to increase the demand for e-buses and to make city traffic more environmentally friendly, funding for the vehicles and their charging infrastructure has been increased by EUR 1.2 billion until the end of 2021.

Bolstering these measures, the vehicle tax for cars will be tied more closely to CO₂ emissions, which should push drivers towards lower- or zero-emission vehicles. Moreover, the vehicle tax exemption for purely electric vehicles will be extended significantly.

Meanwhile a new "LNG refueling ship funding program", a "fleet renewal program for government ships" and a new "immediate clean boat program" totaling EUR 1 billion will be available to projects beginning in 2020 and 2021. The government also intends to promote the use of green hydrogen in aircraft engines and the development of concepts for "hybrid electric flying" in order to accelerate the transition to modern aircraft fleets emitting up to 30 percent less CO₂ and noise. To this end, a mandatory power-to-liquid quota for aviation fuel is currently being evaluated.

Expanding charging infrastructure

Support for charging infrastructure will also be expanded by EUR 2.5 billion. Part of the regulation requires that all vehicle filling stations in Germany offer charging points. In addition, a uniform payment system for charging will be implemented, and there will be a cap on the national EEG surcharge on electricity tariffs, keeping electricity prices low while promoting renewable energies. The 52 GWp installation cap for photovoltaics has been abolished, and the expansion target for offshore wind will be raised from 15 to 20 GW in 2030.

Nine billion euros for green hydrogen

The federal German government has unveiled its National Hydrogen Strategy.

The aim is to make Germany the world's leading supplier of state-of-the-art hydrogen technology.

In addition to examining whether hydrogen production can be funded through tenders for electrolysis services, the strategy promotes the switch from fossil fuels to hydrogen, particularly in the industrial processes of the steel and chemical industries as well as in the heating and transport sectors.

Accordingly, there will be a strategy for developing hydrogen production plants. The shift will be funded both by investment grants in new electrolysis plants and a new pilot program to support the operation of existing plants. Furthermore, the government is examining a demand quota for climate-friendly steel and the funding of "hydrogen-ready" plants via the CHP Act. In order to promote the use of green hydrogen in heavy goods traffic, the hydrogen filling station network is also being rapidly expanded.

A flexible and results-oriented governance structure is being created to implement and further develop the strategy. It includes the appointment of a national hydrogen council, an interdepartmental state secretary for hydrogen and a green hydrogen innovation officer from the German Ministry of Education and Research.

Germany actively encourages international companies to get involved. Be part of this transition and see your ideas profit from this massive new wave of innovation.