The European Commission has given the green light to a €3 billion German scheme under EU State aid rules to bolster the construction of the Hydrogen Core Network (HCN). The HCN is set to serve as the primary infrastructure for long-distance hydrogen transport in Germany and will play a significant role in linking various Member States through the European hydrogen backbone. The first major pipeline of the HCN is slated for operation in 2025, with full completion anticipated by 2032. Margrethe Vestager, the Executive Vice-President overseeing competition policy, emphasized the importance of establishing a core network of pipelines for hydrogen to attract investments in hydrogen production and consumption, ultimately expediting the transition towards sustainability. The approved German scheme is hailed as a substantial step towards developing a European hydrogen market while ensuring minimal competition distortions. By repurposing existing natural gas pipelines and constructing new hydrogen pipelines and compressor stations, the measure aims to drive investments in the creation of the HCN infrastructure. Transmission system operators (TSOs) will spearhead the financing, selected by the German federal network agency, Bundesnetzagentur. State aid in the form of guarantees will enable TSOs to secure favorable loans to offset initial losses during the HCN's establishment phase. Germany anticipates a gradual increase in consumer participation, offering lower tariffs initially to incentivize network utilization and hydrogen adoption. The loans, facilitated by the German national promotional bank Kreditanstalt für Wiederaufbau (KfW) at reduced refinancing rates, will be reimbursed progressively until 2055 to align with the projected surge in hydrogen demand. The estimated aid amount aligns with the additional financing costs that TSOs would have incurred without the State guarantee, showcasing a concerted effort to drive hydrogen infrastructure development and uptake.