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Deutsche ReGas gets EU funding for Lubmin hydrogen project

Deutsche ReGas announced on Wednesday that it would receive public grants worth 112 million euro ($126.97m) from the European Union Hydrogen Bank to fund a renewable hydrogen development project in Lubmin, Germany on the Baltic Sea coast.

The grant is part of EU funding schemes that promote electrolysis processes using carbon-free electric to jump-start local economies producing hydrogen as an alternate to fossil fuels.

ReGas has said that the production of hydrogen at Lubmin can reduce carbon dioxide by 1.6 million tons. The funding for this project will be spread out over a period of 10 years.

The EU subsidy is intended to close the price gap between the green hydrogen production costs and conventional electricity prices.

ReGas announced that the funding was awarded at a 992-million euro auction. This was the second one for the Hydrogen bank, and 15 projects from 5 countries received money.

ReGas, a private energy infrastructure developer and operator, includes floating storage and regasification unit and hydrogen electrolysers.

The Lubmin plant is located near the location where ReGas imported liquefied gas from a floating terminal after the energy crisis of 2022. It aims to use offshore wind energy as well as Baltic Sea water for the electrolysis process that will produce hydrogen.

The new core hydrogen transport network is set to begin between 2025-2032.

ReGas is moving its LNG operations from Lubmin in order to build an LNG landing facility at the nearby German Port area of Mukran, on Ruegen Island.

Ingo Wagner, managing director, said: "From the beginning, we wanted to ensure energy supply while also advancing the energy transition."

ReGas attached a document from the EU that stated grant agreements for the selected hydrogen projects by the EU during the auction round should be signed in September/October.

(source: Reuters)