Statkraft has been allocated €107m in EU funding for a 200MW electrolyser project in Germany.
The green hydrogen scheme in Emden, Lower Saxony, also includes a 50MW heat pump system.
The plant, when operational, will produce up to 20,000 tonnes of renewable hydrogen and up to 50,000MWh annually.
Statkraft already supplies industrial customers in Emden with district heating from a biomass plant there.
The possible funding comes from the EU Innovation Fund, which promotes the development of new technologies to reduce greenhouse gas emissions in Europe.
“In Emden, we are opening the first chapter of our ambitious hydrogen plans in Germany,” said vice president hydrogen at Statkraft in Germany Helge-Jürgen Beil.
“We want to be one of the leading producers of green hydrogen in Germany and are very pleased that we can count on EU funding for this project, which is important for us.”
Statkraft has already signed several letters of intent with potential customers for green hydrogen and clean district heating in Emden.
The company will now enter into negotiations on the grant decision with the EU.
Meanwhile, Statkraft is also making progress with its hydrogen pilot project, the development of a 10MW electrolyser to produce green hydrogen at the Emden site.
The fuel produced at the plant will be used to supply filling stations in the region.
An investment decision for the construction of the plant is expected to be made this year.