![\"hydrogen](\"https:\/\/www.europesays.com\/uk\/wp-content\/uploads\/2025\/04\/1-1.png\")
<\/a><\/p>\nThe two project partners say in a joint statement,<\/p>\n
\nDespite its high potential, the ramp-up of the hydrogen economy in Europe is under pressure,<\/p>\n<\/blockquote>\n
\u201cThe current economic situation is slowing investments in research, production, and infrastructure expansion\u2026 Despite the project\u2019s significant progress and maturity, commercial implementation is currently not possible due to insufficient public funding commitments.\u201d<\/p>\n
The companies did not rule out restarting the project in the future \u201cunder changed economic and regulatory conditions.\u201d<\/p>\n
In 2023, the project was awarded \u20ac48.5 million ($56.7m) from the Innovation Fund.<\/p>\n
Meanwhile, the 53-MW HydroHub Fenne project in Saarland, Germany, has also been cancelled, a spokesperson for the lead developer Steag Iqony Group\u00a0confirmed to Kallanish<\/strong>. To be located at\u00a0Steag\u2019s energy site in V\u00f6lklingen, the project targeted production of 8,200 t\/y of green hydrogen from 2027.<\/p>\n
The spokesperson<\/strong>, says:<\/p>\n
\nTogether with our strong partners Quest One (MAN) and Vattenfall, we pushed the project forward with great commitment and even made upfront investments,<\/p>\n<\/blockquote>\n
\u201cAt the same time, it was always clear: the final investment decision would depend on the key parameters of the tender of the potential anchor customer. A hydrogen project of this size requires reliable offtake routes, an appropriate risk-sharing structure, comparable competitive conditions in France and Germany, and an economically viable framework. Under the given circumstances, these criteria were unfortunately not achievable for us.\u201d<\/p>\n
The spokesperson points out that the\u00a0ramp-up of hydrogen in Germany is \u201cprogressing slowly,\u201d with high electricity prices being the \u201cmain obstacle.\u201d With some of the highest electricity prices in the world, hydrogen projects in the country\u00a0are \u201chardly competitive when relying on domestic electricity.\u201d<\/p>\n
Last year, the project was classified by the EU as an Important Project of Common European Interest (IPCEI). It had secured a grant notification of\u00a0\u20ac100m in federal and state funds, although subsidies are yet to be received.<\/p>\n
The spokesperson<\/strong>, adds, noting that the funding could not offset economic risks related to green electricity procurement and the dependence on external stakeholders,<\/p>\n
\nWhile such funding would reduce investment costs, it would not mitigate the serious risks in the hydrogen production market,<\/p>\n<\/blockquote>\n
The Hydrogen Council estimates that at least 50 projects have been publicly cancelled in the past 18 months, amid high interest rates, energy costs, and delayed policy implementation.<\/p>\n
READ<\/strong> the latest news shaping the hydrogen market at Hydrogen Central<\/a><\/p>\n