German Economy and Climate Protection Minister Robert Habeck has welcomed the massive package for infrastructure and defence spending passed in the Bundestag, which includes new funds to combat climate change.

The agreement between centrist parties, led by the likely next chancellor, Friedrich Merz, was billed as a response to America’s shrinking security guarantees.

This is the largest contract of its kind in Germany, setting a precedent for hydrogen adoption in heavy industry. For TotalEnergies, it provides a crucial supply of clean hydrogen to help slash emissions at its refinery in Leuna, while for RWE, it guarantees a long-term customer for its expanding hydrogen production.