Norway’s Gen2 Energy has signed a €62m ($69m) grant agreement for green hydrogen production subsidies from the third round of the European Hydrogen Bank.
The agreement will see the firm receive subsidies of €3.48/kg ($3.88) of green liquid hydrogen (LH2) produced at its 195MW project in Nesbruket, Norway, over ten years from its coming online.
When launched, Gen2’s project could supply end-users in Germany via an LH2 trade route being explored with MB Energy.
This would add to several projects targeting demand in the country.
While the Norwegian firm has completed several pre-final investment decision (FID) milestones, including securing power and lining up production to begin in 2027, Gen2 is yet to announce financial close on the project.
Under the EHB’s terms and conditions, the project will need to reach FID within two and a half years of signing the grant agreement, and begin production within five years.
CEO Camilla Nilsson said the funds would help bring the facility “towards realisation.”
Finalising the EHB grant marks the first concrete deal following the selection of nine renewable fuel of non-biological origin (RFNBO) hydrogen projects set to receive over €1bn ($1.1bn) raised from Europe’s emissions trading scheme (ETS) revenues.
The May auction saw maritime-focused hydrogen suppliers granted the largest subsidies, with GreenH’s RogalandH2 project, also in Norway, receiving a similar award to Gen2.
Three Danish projects set to supply Germany via the Danish Hydrogen Backbone also recently cemented a total of €1.2bn subsidies under the EHB’s Auctions as a Service scheme.
