The German state of Baden-Württemberg has closed the submission window for the second round of its ELY funding programme for electrolysers on 18 May 2026. With 50 million euros on the table, the call is one of the most concrete pieces of state-level support for green hydrogen production in Europe – and a useful indicator of how regional Power-to-X infrastructure is being built up, project by project.

What the ELY programme funds

The ELY programme (short for Elektrolyseure, German for electrolysers) is run by Baden-Württemberg’s Ministry for the Environment, Climate and Energy. It supports the construction and expansion of local water electrolysers that produce renewable hydrogen from electricity. The aim is to seed regional hydrogen hubs – local ecosystems where renewable hydrogen is generated, distributed and used within a defined geographical area.

This is the second call under a programme with a total volume of more than 100 million euros. The first round, in 2025, awarded 50.7 million euros across eight projects with a combined electrolyser capacity of 55 megawatts. The second call, opened in early 2026 and closing on 18 May 2026, makes a further 50 million euros available.

Key conditions of the 2026 call

  • Maximum grant per project: 10 million euros (8.25 million euros for small and medium-sized enterprises).
  • Funding rate: Up to 45 percent of eligible investment costs, with bonuses of up to 20 percentage points for small enterprises and 10 percentage points for medium-sized enterprises.
  • Minimum electrolyser size: 1 MW of electrical input, technology-open (PEM, alkaline, AEM, SOEC all eligible).
  • Electricity requirement: Operation must use 100 percent renewable electricity.
  • Scope: Includes balance-of-plant (BoP) components, not just the electrolyser stack itself.
  • Implementation period: Funded projects can be carried out between January 2027 and June 2030.

Applications were submitted electronically via the pt-outline system, with the Projektträger Karlsruhe (PTKA) at the Karlsruhe Institute of Technology (KIT) managing the process on behalf of the ministry. Full applications from shortlisted candidates are expected to be requested in August 2026, with a four-to-six week response window.

Why a regional electrolyser programme matters for Power-to-X

Renewable hydrogen is the upstream input for almost every Power-to-X pathway: synthetic methane (Power-to-Gas), e-methanol and e-fuels (Power-to-Liquid), green ammonia, and CO2-based chemicals. Without affordable, locally available green hydrogen, downstream Power-to-X projects struggle to reach financial close.

State-level programmes like ELY play a specific role in this chain. While EU-wide instruments such as the European Hydrogen Bank target large, internationally competitive projects, regional schemes are designed to anchor smaller, distributed electrolysers close to industrial off-takers. For Baden-Württemberg, an inland region without sea-based hydrogen imports, this is a deliberate strategy: build local hydrogen hubs to bridge the period before the national hydrogen core network reaches the south of Germany.

The state government has framed the programme as a response to delays at federal level. According to Baden-Württemberg’s environment ministry, the call is intended to give companies planning certainty in a context where Germany’s broader hydrogen strategy is still being finalised.

First round as a reference point

The first ELY call in 2025 funded eight projects ranging from 1 to 15 megawatts of electrolyser capacity, distributed across various districts of Baden-Württemberg. Contracts were handed over by Environment Minister Thekla Walker on 17 December 2025. Among the recipients are projects such as HYDROPORTKEHL and hyfischer in the southern Upper Rhine region, illustrating that the programme reaches both larger industrial sites and smaller, application-specific installations (for example for waste management or local mobility).

SPIN Perspective

For the Swiss Power-to-X community, two points are worth noting. First, regional funding programmes of this scale show what a concrete, predictable framework for electrolyser deployment can look like. Switzerland’s Power-to-X potential is well-documented, but project pipelines remain sensitive to regulatory uncertainty – clear, multi-year programmes with defined funding rates and timelines are a structural enabler that is often more decisive than headline targets.

Second, the regional hub logic is directly transferable. Power-to-X projects rarely fail because the technology does not work; they fail when hydrogen production, CO2 supply, off-take agreements and grid connection do not align in time and space. Programmes that explicitly fund the upstream electrolyser piece, with strict renewable-electricity requirements, lower the coordination burden for downstream Power-to-Methanol, e-fuel and chemicals projects that rely on the same hydrogen.

The results of the second ELY call – which projects are shortlisted, where they are located, and how the awarded capacity compares to the 55 MW from the first round – will be visible later in 2026. They will be a useful data point for anyone tracking how Power-to-X infrastructure is actually being built in Europe, beyond announcements.

Source

Ministry for the Environment, Climate and Energy Baden-Württemberg: Förderprogramm Elektrolyseure (programme page) and press release “Förderung der regionalen Erzeugung von Wasserstoff geht in die zweite Runde”. Submission management: Projektträger Karlsruhe (PTKA).