EU Awards Nearly €1 Billion to Boost Renewable Hydrogen Projects
The European Commission has announced the selection of 15 renewable hydrogen production projects across five countries in the European Economic Area (EEA), awarding a total of €992 million in funding through the Innovation Fund, part of the EU Emissions Trading System.
These projects, chosen through the second European Hydrogen Bank (EHB) auction, are expected to produce nearly 2.2 million tonnes of renewable hydrogen over the next decade, while helping to avoid more than 15 million tonnes of CO₂ emissions. The hydrogen will be used in hard-to-decarbonise sectors such as transportation, the chemical industry, and the production of methanol and ammonia.
The subsidies aim to close the price gap between the cost of producing renewable hydrogen and the market price, accelerating the shift to cleaner fuels and reducing reliance on fossil fuels.
Individual project grants range between €8 million and €246 million, to be disbursed over a period of up to 10 years.
The selected projects are listed in the following table:
Next steps include finalizing grant agreements by September/October 2025, with funded projects required to reach financial close within 2.5 years and begin hydrogen production within 5 years. A third EHB auction, with up to €1 billion in funding, is planned for late 2025.
The Commission will also soon launch a new Hydrogen Mechanism platform, connecting hydrogen buyers and sellers across Europe.
This initiative marks a major stride toward achieving the EU’s REPowerEU goal of producing 10 million tonnes of domestic renewable hydrogen by 2030, while unlocking private investment, strengthening energy independence, and supporting the clean industrial transition.
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