The European Commission has selected 15 renewable hydrogen production projects across the European Economic Area which will be awarded public funding. The projects are expected to generate approximately 2.2 million tonnes of renewable hydrogen over ten years. These projects are spread across five countries in Europe.
The projects will receive a total of €992 million in EU funding from the Innovation Fund, sourced from the EU Emissions Trading System. The hydrogen will be produced in sectors such as transportation, the chemical industry, and the production of methanol and ammonia. This will be done through a subsidy that will aid in bridging the price gap between their production costs and the market price.
The selected projects will be invited to prepare the grant agreement with the European Climate, Infrastructure and Environment Executive Agency. The agreements are expected to be signed by September/October 2025. Additionally, the inked projects are required to reach financial close within two and a half years after signing the agreement. The projects are also required to commence production of renewable hydrogen within a period of 5 years.
REGlobal’s Views: Green hydrogen is expected to play a major in Europe’s overall transition to clean energy. After the success of the first two auctions, a third European Hydrogen Bank auction is already planned for end 2025. Further, an online platform called Hydrogen Mechanism is also planned to bring together buyers and sellers.
