The European Commission has announced the selection of 15 renewable hydrogen production projects for public funding across the European Economic Area (EEA), according to EU's release.
The projects, located in five countries, are expected to produce nearly 2.2 million tonnes of renewable hydrogen over ten years, avoiding more than 15 million tonnes of CO₂ emissions.
The hydrogen will be produced in sectors such as transportation, the chemical industry, or the production of methanol and ammonia.
They will receive a total of €992 million in EU funding, sourced from the Innovation Fund under the EU Emissions Trading System (ETS).
The selected projects emerged from the second European Hydrogen Bank (EHB) auction.
The funding aims to bridge the price gap between renewable hydrogen production costs and current market prices, thereby accelerating the deployment of cleaner fuels.
Of the selected projects, 12 are committed to producing renewable hydrogen with fixed premium support between €0.20 and €0.60 per kilogram. For the first time, the auction provided a dedicated budget for hydrogen producers with off-takers in the maritime sector, resulting in the selection of three bids receiving €96.7 million in grants.
These projects will require between €0.45 and €1.88 per kilogram. Each subsidy for the 15 projects ranges from €8 million to €246 million over a period of up to 10 years.
In parallel, Spain, Lithuania, and Austria are allocating up to €836 million in national funding for projects in their countries through the ‘Auctions-as-a-Service' feature.
This mechanism allows Member States to fund eligible projects in their territories that meet the auction's qualification criteria but cannot be funded by the Innovation Fund due to budgetary limitations.
The selected projects will now be invited to prepare their grant agreements with the European Climate, Infrastructure and Environment Executive Agency (CINEA), with agreements expected to be signed by September/October 2025.
Projects are required to reach financial close within a maximum of two and a half years after signature and to start producing renewable hydrogen within five years.
They will receive the fixed premium subsidy for up to ten years for certified and verified renewable hydrogen production.
A third European Hydrogen Bank auction is planned for the end of 2025 with a budget of up to €1 billion.
Additionally, the Commission will soon launch the Hydrogen Mechanism under the European Hydrogen Bank, an online platform to connect buyers and sellers and facilitate market participation.
The European Commission is the executive branch of the European Union, responsible for proposing legislation, implementing decisions, upholding EU treaties, and managing the day-to-day business of the EU.
The European Hydrogen Bank is an initiative by the European Commission to support the development of a full hydrogen value chain in Europe.
European Climate, Infrastructure and Environment Executive Agency (CINEA) is an executive agency of the European Commission, managing EU programmes in the fields of climate action, infrastructure, and environment. It oversees the implementation of the Innovation Fund and other programmes supporting the EU's Green Deal.