Hydrogen will compete with other industrial low-carbon technologies for the European Commission’s new planned €100bn ($114bn) Industrial Decarbonisation Bank (IDB).
The cash is set to be awarded to projects decarbonising energy-intensive industries, with the scheme focused on mature projects and designed to ensure “best value for money.”
The Commission positions hydrogen as one of the technologies eligible to compete for the IDB funding, with both hydrogen production and end-use covered.
It will, however, be considered on a technology-neutral basis against other mature industrial decarbonisation solutions, including electrification, carbon capture, utilisation and storage (CCUS), and other carbon removal technologies.
Funded primarily through revenues from the EU’s emissions trading scheme (ETS), the IDB will launch with the ETS Investment Booster, allocating €400m ($456m) in low-carbon investments from 2028 to 2030.
The following phase from 2031 will utilise mechanisms such as contracts for difference to mobilise the full €100bn.
The Commission said the IDB establishes “dedicated, direct” support to maritime and aviation industries, particularly encouraging offtake for “EU-produced sustainable aviation and maritime fuels, clean technologies and hydrogen.”
The scheme mirrors Germany’s carbon contracts for difference (CCFD) scheme, which is pitched as a technology-neutral auction.
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