Leuna facility to receive millions for green hydrogen production
Saxony-Anhalt, a region in Germany, is making significant strides in the production of green hydrogen, despite setbacks in similar projects nationwide. The region's commitment to establishing itself as a hub for green hydrogen production is evident in several key projects, demonstrating a proactive strategy to cultivate a sustainable and industry-forward hydrogen economy.
One of the major developments is the construction of a new electrolyzer by the chemical company Linde in Leuna, supported by a €4.3 million funding grant from the Saxony-Anhalt Ministry of Energy and Environment. This electrolyzer will be crucial for producing green hydrogen using renewable electricity, aligning with the region's energy transition goals.
Another significant advancement is the inauguration of a 25-kilometre hydrogen transport pipeline linking the electrolyzer under construction at Bad Lauchstädt Energy Park with TotalEnergies refinery in Leuna. This pipeline represents the first section of the hydrogen core grid in Eastern Germany and is part of the broader ONTRAS H2-Start Grid, connecting multiple hydrogen projects in the region and integrating into the European Hydrogen Backbone.
A flagship initiative is the Sonnenberg V wind farm project in Groß Germersleben, which will install up to 29 modern turbines (235 MW capacity) to generate renewable electricity partly used to power an electrolyzer near Magdeburg. This project highlights sector coupling and regional stakeholder involvement, including local farmers and municipalities, emphasizing local value creation from green hydrogen production.
Despite this momentum, Saxony-Anhalt faces several challenges. High costs and technical hurdles have led to postponements or cancellations of similar projects elsewhere in Germany. The energy-intensive nature of electrolysis and the substantial investment required in infrastructure and technology remain significant barriers. The transition to widespread green hydrogen use is expected to be a long-term process, with experts indicating that broad industrial deployment is unlikely before 2040.
Notwithstanding these challenges, Saxony-Anhalt’s dedicated funding programs, including an €87 million EU-funded initiative rapidly fully allocated, and substantial infrastructure advances reflect a proactive strategy to cultivate a sustainable and industry-forward hydrogen economy.
Saxony-Anhalt aims to build a capacity of 1,000 megawatts by 2030, and the region's ambition is evident in the ongoing construction of its first industrial area with 80 hectares for technology companies at Sonneberg.
On August 19, 2025, Energy and Environment Minister Armin Willingmann (SPD) announced a funding decision worth 4.3 million euros for the construction of another electrolyzer at the Linde chemical company in Leuna, Saxony-Anhalt. The federal government, too, is promoting the ramp-up of the hydrogen economy with various plans and programs, aiming to have 10,000 megawatts nationwide in the next five years.
Despite some stagnation in Central Germany, Saxony-Anhalt remains committed to its green hydrogen vision, demonstrating resilience and determination in the face of challenges.
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