Serbia implementing first green hydrogen pilot project with Germany

Serbia is conducting its first pilot project for hydrogen, HyDSerbia, in cooperation with Leipzig-based energy firm Leipziger Energiegesellschaft. The German government approved funding under a guideline on financial support for international hydrogen projects, in line with its National Hydrogen Strategy (NHS).

The project is called HyDSerbia – Construction and Operation of an Integrated H2 Pilot Plant as a Precursor of Large-Scale Industrial Production and Export of Green Hydrogen and Derivatives at Various Locations in the Republic of Serbia, according to EnArgus, a portal run by the Federal Ministry of Economic Affairs and Climate Action.

The timeline is December 1, 2022 – June 30, 2026. The ministry has approved EUR 3.5 million for the project.

It also hired research institute Fraunhofer-Center für Silizium-Photovoltaik for a feasibility study for the large-scale industrial production, transport, and export of green hydrogen and derivatives at various locations in Serbia. The project lasted from October 2023 to July 2024.

KfW is interested in investing in innovative renewable energy projects in Serbia, including green hydrogen

Very little was known so far about HyDSerbia. Ten days ago, Director of Germany’s KfW Development Bank for Southeast Europe and Turkey Klaus Müller met with Serbia’s Minister of Energy and Mining Dubravka Đedović Handanović. He said the lender is interested in investing in innovative renewable energy projects in the country, including green hydrogen, in a possible pilot project in cooperation with private firms.

A few days ago KfW said the goal is to stimulate a local hydrogen value chain and support Serbia’s decarbonization efforts, SeeNews reported. The development bank noted that the German government is already supporting Serbia’s first hydrogen pilot project – HyDSerbia.

The pilot plant would consist of a PV system and hydrogen production

With HyDSerbia, Leipziger Energiegesellschaft is pursuing an integrated project approach for the production of green hydrogen, according to the German government’s website. A pilot plant consisting of a solar power unit and hydrogen facility will initially be for small-scale production and practical commercial use of green hydrogen.

It will be a technical, regulatory, and commercial basis and case study for a subsequent upscaling of green hydrogen production in the entire region, the website reads.

By organizing reliable and sustainable supply chains for the climate-neutral energy source, part Germany’s demand will also be covered in the future, according to the update.

Germany is supporting hydrogen projects outside of EU and EFTA countries

The focus of the guideline on financial support for international hydrogen projects is to provide grants of up to EUR 15 million to cover financing gaps for investment plans that can serve as a point of reference but are not yet economically viable and for accompanying research projects.

The Federal Ministry for Economic Affairs and Climate Action said it is thereby supporting the expansion of installations for the production of green hydrogen and its derivatives, as well as storage, transport, and integrated use of hydrogen outside of the European Union and the European Free Trade Association – EFTA.

The measure supports the international market ramp-up of green hydrogen and the use of German technology abroad, it added and called it the groundwork for importing hydrogen.