Approximately EUR 1 Billion Granted to Accelerate Renewable Hydrogen Development
The Commission has selected 15 renewable hydrogen projects across five EEA countries to receive EUR 992 million in EU funding through the Innovation Fund. Over the next decade, these projects aim to produce 2.2 million tonnes of renewable hydrogen and prevent more than 15 million tonnes of CO₂ emissions, with applications in transport, chemicals, methanol, and ammonia production.
The selected bidders from the second European Hydrogen Bank (EHB) auction will produce renewable hydrogen in Europe, supported by subsidies designed to bridge the gap between production costs and market prices, thereby speeding up the adoption of cleaner fuels.
Spain, Lithuania, and Austria will provide up to EUR 836 million in national funding for eligible hydrogen projects through the EU’s ‘Auctions-as-a-Service’ system. This mechanism lets Member States fund qualified projects that couldn’t be supported by the Innovation Fund due to limited budget, using a streamlined process offered by the EU auction platform.
Selected hydrogen projects will begin preparing grant agreements with the European Climate, Infrastructure and Environment Executive Agency (CINEA), expected to be signed by September/October 2025. Projects must reach financial close within 2.5 years and start producing renewable hydrogen within 5 years. They will receive a fixed premium subsidy for up to 10 years. A third European Hydrogen Bankauction with a EUR 1 billion budget is planned for late 2025. Additionally, the Commission will soon launch the Hydrogen Mechanism platform to connect hydrogen buyers and sellers.
For more information, see the Commission’s PR.