this post was submitted on 21 May 2025
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Today, the Commission announced the selection of 15 renewable hydrogen production projects for public funding across the European Economic Area (EEA). The projects, located across five countries, are expected to produce nearly 2.2 million tonnes of renewable hydrogen over ten years, avoiding more than 15 million tonnes of CO₂ emissions. The hydrogen will be produced in sectors such as transportation, the chemical industry, or the production of methanol and ammonia. They will receive a total of €992 million in EU funding, from the Innovation Fund sourced from the EU Emissions Trading System (ETS).

The winning bidders, awarded after the second European Hydrogen Bank (EHB) auction, will produce the renewable hydrogen in Europe with a subsidy that will help to close the price difference between their production costs and the market price and accelerate the deployment of cleaner fuels.

[...]

In parallel, Spain, Lithuania, and Austria are allocating up to €836 million in national funding for projects in their countries through the ‘Auctions-as-a-Service' feature. This allows Member States to identify and fund eligible projects in their territories that meet the auction's qualification criteria but cannot be funded by the Innovation Fund due to budgetary limitations. ‘Auctions-as-a-service' is open to all Member States, enabling them to benefit from the EU-level auction platform and award national funding to additional projects with simplified procedure.

[...]

With an estimated total budget of €40 billion from the EU Emissions Trading System for the period from 2020 to 2030, the Innovation Fund creates financial incentives for companies and public authorities to invest in cutting-edge net-zero technologies and support Europe's transition to climate neutrality.

[...]

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