The European Commission has approved a €3 billion German scheme aimed at supporting the construction of the Hydrogen Core Network (HCN) as part of the country's efforts to foster the use of renewable hydrogen in industry and transport by 2030. This initiative is crucial for the achievement of the EU's Hydrogen Strategy and the 'Fit for 55' package. Germany notified the Commission of its intention to introduce the scheme to develop the domestic HCN, which will serve as the backbone for long-distance hydrogen transport pipelines in Germany and across several EU Member States. The scheme will enable investments in repurposing existing gas pipelines for hydrogen transport, as well as constructing new hydrogen pipelines and compressor stations. To finance the construction and operation of the HCN, hydrogen transmission system operators (TSOs) will be selected by the German federal network agency, with aid provided in the form of State guarantees to facilitate favorable loans covering initial losses in the HCN ramp-up phase. The loans, offered below market rates by the German national promotional bank, Kreditanstalt für Wiederaufbau (KfW), are expected to be repaid by 2055 as hydrogen demand increases. The Commission's approval of the scheme under EU State aid rules, including considerations under the Treaty on the Functioning of the European Union and the 2022 Guidelines on State aid for climate, environmental protection, and energy, highlights that the initiative is viewed as necessary and proportionate to accelerate investments in hydrogen infrastructure. The scheme aligns with key EU policy objectives such as the European Green Deal and 'Fit for 55' package, supporting the transition towards cleaner energy sources and contributing to the EU's climate targets. Furthermore, the Commission's assessment indicates that the scheme's positive effects, such as facilitating the development of the hydrogen transmission network and promoting investments in this strategic infrastructure, outweigh any potential negative impacts on competition and trade in the EU. The approval of the German scheme signifies a step towards strengthening hydrogen infrastructure in Germany and the EU, complementing broader European initiatives to advance clean hydrogen production and utilization.