The European Commission has announced the allocation of €992m to 15 large-scale renewable hydrogen projects across the European Economic Area.
These projects, spanning five countries, are set to produce nearly 2.2 million tonnes of renewable hydrogen over the next decade – enough to prevent more than 15 million tonnes of carbon dioxide emissions.
This strategic move is part of the EU’s broader push to cut its reliance on fossil fuels and decarbonise critical sectors such as transportation, chemicals, ammonia, and methanol production.
Why expanding renewable hydrogen capacity matters
As Europe confronts the dual challenges of climate change and energy insecurity, expanding renewable hydrogen production is no longer optional – it’s essential.
Hydrogen made from renewable electricity (like solar or wind) emits no CO₂ when used, making it an ideal substitute for fossil fuels in sectors that are tough to electrify, such as steelmaking, long-haul transport, and maritime logistics.
By investing in this green fuel, the EU can reduce its dependence on imported oil and gas, particularly from unstable or unfriendly regions.
Moreover, the shift to a hydrogen-based economy promises a massive boost to green jobs and innovation. Developing a domestic hydrogen industry means building electrolyser plants, developing storage solutions, and training a new generation of clean energy professionals.
Accelerating the renewable hydrogen economy
The landmark funding was awarded through the second auction of the European Hydrogen Bank (EHB), which is designed to reduce the cost gap between clean hydrogen and fossil-based alternatives.
With support ranging from €8m to €246m per project over ten years, the grants are structured as fixed premium subsidies – ranging from €0.20 to €0.60 per kilogramme for most projects – to encourage rapid deployment and commercial viability.
Three of the selected projects specifically target the maritime sector, supported by a dedicated budget of €96.7m.
These hydrogen initiatives, which involve bunkering activities, will receive subsidies of €0.45 to €1.88 per kilogramme, reflecting the higher production costs in this hard-to-abate industry.
Projects include:
National governments join the push
In parallel with the EU-level initiative, Spain, Lithuania, and Austria are leveraging a new model called ‘Auctions-as-a-Service’ to inject up to €836m in national funding into additional renewable hydrogen projects.
This allows Member States to back eligible but unfunded bids using a shared EU auction framework, reducing administrative burdens and expanding the reach of the hydrogen drive.
This flexible system is open to all EU countries and is poised to become a powerful tool for increasing renewable hydrogen capacity across the bloc.
Commenting on the investments, Wopke Hoekstra, Commissioner for Climate, Net Zero and Clean Growth, said: “The results of the second EU-wide auction for renewable hydrogen underscore both the strong interest from industry and the increasing competitiveness of clean hydrogen in Europe.
“We are now able to support more projects, and at highly competitive prices. I also warmly welcome the joint efforts of Spain, Austria, and Lithuania, whose participation through the Auctions-as-a-Service scheme demonstrates a shared commitment to scaling up hydrogen production across the Union.”
Timelines and market expansion
All selected projects must sign their grant agreements with the European Climate, Infrastructure and Environment Executive Agency (CINEA) by September or October 2025.
After that, projects are expected to achieve financial close within 2.5 years and commence renewable hydrogen production within five years.
Successful producers will receive premium support for a decade, provided their output is certified and verified as renewable.
The European Commission has also confirmed plans for a third EHB auction at the end of 2025, backed by a €1bn budget, and will soon launch the Hydrogen Mechanism – a digital matchmaking platform to connect hydrogen buyers and sellers across Europe.
A green future within reach
The European Commission’s latest funding round represents more than just a financial commitment – it is a declaration of intent to lead the world in renewable hydrogen development.
With industrial decarbonisation, energy sovereignty, and climate goals all on the line, this comprehensive approach could reshape Europe’s energy landscape for generations.
As the EU builds momentum, the success of these initial projects will be critical to proving the business case for renewable hydrogen and ensuring that Europe stays at the forefront of the global green transition.
