The European Commission has announced around €720m in funding to support seven European renewable hydrogen projects.
The renewable hydrogen projects have been selected under the bidding system of the European Hydrogen Bank, with the funds generated through the revenues of the EU Emissions Trading System.
The projects will be essential in meeting the EU’s targets for producing renewable hydrogen in Europe, with the ambitious goal of producing ten million tonnes by 2030.
The Commission’s subsidy will enable these projects to bridge the gap between production costs and the market price for hydrogen.
The renewable hydrogen generated from the projects will be used to power various sectors, such as steel, chemicals, fertilisers, and maritime transport.
The news follows the recent announcement of the EU’s €424m investment to advance alternative fuel infrastructure.
Kadri Simson, EU Commissioner for Energy, commented: “The EU is becoming a hub for clean technologies.
“The results of the first auction of the European Hydrogen Bank prove the high interest from European industry in producing and using hydrogen on our continent.
“The selected projects will help us to deliver the EU’s 2030 energy and climate targets while creating new opportunities for green jobs and skills.
“The second hydrogen bank auction later this year is another exciting opportunity for European industry, and I hope to see similar interest then.”
Boosting renewable hydrogen production in Europe
The seven projects were successful among a total of 132 bids.
Each project submitted bids ranging between €0.37 and €0.48 per kilogram of renewable hydrogen produced and will receive funding between €8m to €245m.
Combined, the projects will produce 1.58 million tonnes of renewable hydrogen over ten years and cut over ten million tonnes of CO2 emissions.
Where will the projects be located?
The European renewable hydrogen projects will be located across four countries: Spain, Finland, Portugal, and Norway.
Projects include:
Maroš Šefčovič, Executive Vice-President for European Green Deal, Interinstitutional Relations and Foresight, added: “The high number of bids and the investments awarded today is a clear signal of confidence in the nascent renewable hydrogen market.
“There is a strong project pipeline in Europe and a competitive industry. These are encouraging signs for the future of this important net-zero technology.”
Additional investment from Germany
Germany has introduced a new ‘Auctions-as-a-service’ programme, allocating €350m in national funding to top-ranked projects that didn’t qualify for EU support but meet eligibility criteria.
German authorities will choose and announce the winning projects. This programme is open to all EU Member States, allowing them to utilise the EU-level auction platform and allocate national funding to more projects.
The Commission encourages other Member States to use this service for upcoming auctions.
