The German government has taken a significant step towards decarbonisation by allocating €2.8bn ($3bn) in funding to support hydrogen-based projects. Fifteen projects are set to benefit from 'climate protection contracts,' with up to five of them focused on hydrogen initiatives. These contracts aim to close the cost gap between using hydrogen and traditional fossil fuels in decarbonising various processes, particularly in power generation. The funding model ensures that companies will only receive financial support once they have successfully reduced their annual greenhouse gas emissions. The contracts have a 15-year duration and will be flexible, adjusting to the fluctuations in energy and CO2 prices, thus providing a stable support mechanism for companies investing in decarbonisation. This initiative signifies Germany's commitment to driving the transition towards cleaner energy sources and reducing carbon emissions, with a specific focus on leveraging hydrogen technology as a key tool in achieving these goals.