The European Commission will allocate 992 million euros for the implementation of 15 renewable hydrogen production projects for public financing in the European Economic Area (EEA). The funds will be provided in the form of EU financing from the innovation fund established under the EU Emissions Trading System (ETS). This is stated in the EU message.
These projects will produce almost 2.2 million tons of renewable hydrogen within ten years. This will make it possible to avoid CO₂ emissions in the amount of more than 15 million tons. Hydrogen will be produced in industries such as transportation and the chemical industry.
The winners of the bidding, announced after the second auction of the European Hydrogen Bank (EHB), will produce renewable hydrogen in Europe with the help of subsidies. Of all the projects, 12 are aimed at producing renewable hydrogen at a fixed premium of 0.20 to 0.60 euros per 1 kg. In total, each subsidy for 15 projects ranges from 8 to 246 million euros for a period of up to 10 years.
In addition, Spain, Lithuania and Austria allocate up to 836 million euros for national financing of projects in their countries using the Auctions as a Service function. This allows EU member states to finance projects that meet the auction criteria but cannot receive funds from the Innovation Fund due to budget constraints.
The winning bidders will prepare a grant agreement with the European Agency for Climate, Infrastructure and Environment (CINEA). The agreements should be signed by September/October 2025. The production of renewable hydrogen should begin within 5 years after the signing of the contracts.
