Boosting New Markets in Hydrogen with short-term subsidies – Does it work?

A notable example from Germany showcasing the impact of short-term subsidies for hydrogen in ramping up the electric heavy-duty vehicle market (battery-electric, fuel cell) was the KsNI funding program. Designed to bridge the cost gap, it covered 80% of the price difference between electric and conventional commercial vehicles, along with funding for the development and expansion of charging and refueling infrastructure. Feasibility studies were also supported, receiving 50% funding.

Launched in mid-2021, the program saw overwhelming demand and was quickly oversubscribed. The limited number of near-market hydrogen truck suppliers struggled to keep up, as vehicles had to be delivered within 12 months, and infrastructure completed within 24 months of funding approval.

Following a ruling by the Federal Constitutional Court in November 2023 affecting public finances, the program closed in February 2024 after its second funding round.

Read our brief assessment of the KsNI funding program and its effectiveness in stimulating demand for electric heavy-duty vehicles.

Review KsNI Programme_BTM_2024.pdf

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Title:

A groundbreaking initiative or a colossal waste of money - the KsNI funding program - A review

Release Date:

July 2024

Author:

Tobias Merten