FNB Gas on the 2027 Federal Budget: Ensuring the Hydrogen Ramp-up Through Reliable Funding

This week, deliberations on the 2027 federal budget will begin. From the perspective of transmission system operators, three key decisions are necessary for the ramp-up of hydrogen:

1. Reliable and long-term financing conditions for the hydrogen ramp-up: H2 funding is expected to total approximately €3.1 billion in the 2027 Federal Budget and, according to medium-term financial planning, is set to fall below the 2027 level by 2030. The 2027 federal budget should send a clear political signal and enable final investment decisions along the H2 value chain. A separate budget line item for hydrogen CfDs would create a reliable foundation for this.
2. Demand, generation, and infrastructure ramp-up must be more closely synchronized and considered together in the financing process: In 2027, the Special Fund for Infrastructure and Climate Neutrality (SVIK) will boost investments in energy infrastructure by €2.5 billion; however, investments in H2 infrastructure are lacking. As a result, the H2 infrastructure perspective remains underrepresented in the budget. Funds for H₂ infrastructure should also be explicitly allocated within the SVIK to account for the entire H₂ value chain.
3. No reallocation of KTF funds to the core budget: €2 .7 billion in ETS revenues are to be transferred from the Climate and Transformation Fund (KTF) to the core budget. This jeopardizes the funding basis for the H2 market ramp-up. KTF funds should be used exclusively for additional programs aimed at climate protection and economic transformation.

The ramp-up of hydrogen can only succeed with reliable financing terms, coordinated support throughout the entire value chain, and sufficient funding for the transition.