Commission approves an Austrian and a Lithuanian State aid scheme to support renewable hydrogen production
Today, the European Commission (Commission) has approved a EUR 400 million Austrian aid scheme and a EUR 36 million Lithuanian aid scheme to promote renewable hydrogen production. These initiatives will be implemented through the European Hydrogen Bank’s “Auctions-as-a-Service” mechanism for the auction scheduled to conclude in 2025.
The schemes aim to support the Clean Industrial Deal’s objective of expediting industrial decarbonisation while enhancing EU industry competitiveness. They are given in the form of direct grant per kilogram of renewable hydrogen produced, for a maximum of 10 years.
The aid will be allocated through a competitive bidding process which will be overseen by the European Climate, Infrastructure, and Environment Executive Agency (CINEA), responsible for receiving, evaluating, and ranking project bids from all Member States. The aid will be accessible to companies intending to develop new electrolyser facilities in Austria and Lithuania.
The Commission approved the schemes under the 2022 Guidelines on State aid for climate, environmental protection and energy (CEEAG), finding them necessary and appropriate for renewable hydrogen production, ensuring limited impact on competition through transparent bidding process. Moreover, the aid has an incentive effect and encouraging investments whose environmental benefits outweigh any competition concerns.
For more information, see the Commission’s PR.