(Bloomberg) -- Germany is giving €4.6 billion ($5 billion) in subsidies to nearly two dozen hydrogen infrastructure projects as the government accelerates plans to move away from polluting gas and coal.
The recipients include RWE AG, Air Liquide SA and EWE AG, and those companies committed to investing another €3.3 billion, according to the economy ministry. The supported projects involve producing, transporting and storing hydrogen, with the planned construction of about 2,000 kilometers (1,243 miles) of pipelines.
Europe’s largest economy remains heavily dependent on gas and coal, and wants to slash carbon emissions by about two-thirds this decade. To get there, the government estimates it will need as much as 110 terawatt-hours of hydrogen.
“It’s time to dig,” economy minister Robert Habeck said.
Industrial demand is likely to far exceed the nation’s capacity to deploy renewables, so the government expects to buy as much as 70% of its hydrogen abroad. An import strategy should be decided on by cabinet ministers next week, he said.
The German subsidies are part of a €6.9 billion European Union energy initiative spanning seven countries.
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