October 2, 2022

Volume XII, Number 275


September 30, 2022

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September 29, 2022

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Commission Approves State Aid For IPCEI In Hydrogen

On 15 July 2022, the European Commission (Commission) approved, under state aid rules, the Hy2Tech “Hydrogen” project, as an Important Project of Common European Interest (IPCEI) to support research, innovation, and the first industrial deployment in the hydrogen technology value chain. The project is an initiative set and notified by 15 EU member states: Austria, Belgium, Czech Republic, Denmark, Estonia, Finland, France, Germany, Greece, Italy, the Netherlands, Poland, Portugal, Slovakia, and Spain. 

This approval is part of the efforts to support the development of an innovative and sustainable European hydrogen industry. In this context, the Commission authorized member states to grant up to €5.4 billion in public funding, aiming to unlock an additional €8.8 billion in private investments. 

IPCEI is a key strategic instrument with respect to the implementation of the EU Industrial Strategy that aims to link knowledge, expertise, financial resources, and market players to overcome market or systemic failures. These are large-scale European consortia in key strategic value chains featuring tightly connected company projects. 

This decision is the first IPCEI project approved based on the 2021 State Aid IPCEI Communication, setting out criteria pursuant to which member states can support transnational projects of strategic significance, under Article 107(3)(b) of the Treaty on the Functioning of the European Union.  

The IPCEI Hy2Tech includes 41 projects and 35 companies, as seen in the graphic below, covering different stages of the hydrogen value chain such as: (a) the generation of hydrogen; (b) fuel cells; (c) storage, transportation, and distribution of hydrogen; and (d) end-users applications, in particular in the mobility sector. 

Furthermore, the Hy2Tech project is expected to create 20,000 direct jobs and contribute to the development of technological breakthroughs, such as new highly efficient electrode materials, higher-performing fuel cells, and innovative transport technologies.

The amount of aid to be granted to the individual participants will be available in the public version of the Commission’s decision.



Source: European Commission (State Aid (europa.eu)).

Copyright 2022 K & L GatesNational Law Review, Volume XII, Number 199

About this Author

Philip Torbøl, KL Gates, cartel investigations lawyer, merger control attorney

Philip Torbøl is a founding partner of the firm’s Brussels office. His practice focuses on EU competition law and government strategies.

Mr. Torbøl’s competition experience includes advising clients in matters related to the conduct of dominant companies, cartel investigations, merger control, and state aid.  In addition to defending clients before European institutions, Mr. Torbøl’s practice focuses on helping companies define their distribution strategies within the framework of EU competition law – not only preventively, but also to ensure...

Mélanie Bruneau Regulatory Compliance Attorney

Mélanie Bruneau is a partner in the firm’s Brussels office. She advises on a broad range of areas in European Law. Her practice focuses on advising clients in a variety of industrial sectors, including transport, manufacturing, chemicals and IT, on the legal aspects of their business activities, with a particular emphasis on regulatory compliance. 

Ms. Bruneau advises large multinationals on all aspects of EU competition law. She has significant experience in cartel investigations. Ms. Bruneau was also involved in the first cartel settlement and in the first hybrid cartel settlement...

Giovanni Campi, KL Gates Law Firm, Financial Services Policy Director
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Giovanni Campi is financial services policy director in the Brussels office. Mr. Campi, a non-lawyer, has experience of assisting with advocacy strategy, policy analysis, and interest representation on various financial services dossiers, including Supervision, Recovery and Resolution, Capital Requirements, Financial Transaction Tax (FTT), and Benchmarks, among others.

Miguel A. Caramello Alvarez Counsel  Brussels Antitrust, Competition & Trade Regulation

Miguel Caramello Alvarez is a counsel at the firm’s Brussels office. He is a member of the antitrust, competition and trade regulation practice group.

He is a regulatory and competition lawyer with extensive experience in the transport sector, in particular on rail. Within his practice, he focuses on all aspects of EU and international rail transport law, competition law and state aid, public procurement, market access and public policy. He provides regulatory and competition representation before the European Commission and other national competition authorities, national rail...

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Inês Mendes is an Associate in K&L Gates' Brussels office. She is a member of the Antitrust, Competition, and Trade Regulation practice group.

Prior to joining the firm, Inês served as an intern at the European Commission where she studied mergers case support and policy and was porte-parole for the DG COMP trainees.

Inês previously worked at K&L Gates as a legal consultant for the Policy and Regulatory and Antitrust, Competition, and Trade Regulation practice groups where she assisted with the Trans-Atlantic...