The European Commission has announced the selection of 15 renewable hydrogen production projects across five countries in the European Economic Area (EEA), allocating €992 million ($1.1 billion) in public funding under the EU Innovation Fund. Over the next decade, these projects are expected to generate approximately 2.2 million tonnes of renewable hydrogen, potentially avoiding more than 15 million tonnes of carbon dioxide emissions.
The selected projects span sectors such as transport, chemicals, methanol, and ammonia production. Backed by funds from the EU Emissions Trading System (ETS), the support aims to bridge the gap between the cost of renewable hydrogen production and current market prices. The initiative forms part of the European Hydrogen Bank’s second auction round, designed to boost the availability of cleaner fuels across the bloc.
Twelve of the 15 projects will receive fixed premiums ranging from €0.20 to €0.60 per kilogramme of hydrogen. For the first time, dedicated funding was made available to hydrogen producers supplying the maritime sector, resulting in three successful bids receiving a combined €96.7 million. Premiums for these maritime projects range from €0.45 to €1.88 per kilogramme. Individual project support varies between €8 million and €246 million over a ten-year period.
In parallel, Spain, Lithuania, and Austria are mobilising up to €836 million in national funding through the EU’s ‘Auctions-as-a-Service’ scheme. This arrangement allows Member States to finance eligible, unfunded projects that meet EU auction criteria, using a simplified, EU-level platform.
Project developers will now begin negotiations with the European Climate, Infrastructure and Environment Executive Agency (CINEA), with grant agreements expected to be signed by September or October 2025. Projects are required to reach financial close within 2.5 years and start hydrogen production within five years. Subsidy payments will be provided for up to ten years based on certified hydrogen output.
A third auction round is planned for late 2025 with a proposed budget of up to €1 billion, as outlined in the EU’s Clean Industrial Deal. Additionally, the Commission is set to launch the Hydrogen Mechanism, an online platform to connect renewable hydrogen producers and buyers.
The Innovation Fund, financed by the EU Emissions Trading System, is expected to distribute up to €40 billion between 2020 and 2030 to support low-carbon technologies. The European Hydrogen Bank, a key element of this strategy, supports the EU’s REPowerEU goal of producing 10 million tonnes of domestic renewable hydrogen by 2030. Its aim is to stimulate investment by addressing cost barriers and fostering a viable renewable hydrogen market within the EU and beyond.
