The Romanian Government has approved the National Hydrogen Strategy 2025-2030, a document that outlines the direction for the country’s energy transition and the development of the clean hydrogen industry. This Strategy presents an analysis of the relevant sectors for hydrogen development, based on the current situation in Romania, with arguments and examples of best practices from other European countries and beyond.
“Renewable hydrogen is seen as an important vector for reducing greenhouse gas emissions, playing a critical role in the energy transition to ‘net zero’ emissions. As part of the decarbonization process, the development of a solid system of renewable energy sources, hydrogen can be a substitute for fossil fuels currently used, contributing to the reduction of emissions in sectors vital to the Romanian economy such as industry and transport, but also in the energy and heating sectors,” the strategic document cites.
The strategy foresees the production of 153,000 tons of renewable hydrogen per year by 2030, mainly for transport and heavy industry. To reach this target, Romania will need more than 2,100 MW of electrolyzers, powered by around 4,200 MW of renewable energy from dedicated solar and wind farms.
The plan proposes to completely replace ‘gray’ hydrogen with ‘green’ hydrogen generated with clean energy. The measure could reduce annual CO₂ emissions by more than two million tons and contribute to the country’s economic and industrial modernization.
At present, hydrogen in Romania is almost exclusively ‘gray’, obtained from natural gas, through producers such as AirLiquide, Azomures, Chimcomplex, Liberty Galati, Rompetrol, OMV Petrom and Petrotel-Lukoil. However, some companies are making the transition to green hydrogen: OMV Petrom aims to cut emissions by 30% by 2030, Liberty Steel is preparing a hydrogen steel plant, and Chimcomplex and Azomures are exploring green production.
The strategy also includes the creation of five ‘hydrogen valleys’, integrated regions of production, transportation and consumption: Bucharest-Ploiesti-Pitesti, Constanta-Medgidia, Cluj-Targu Mures, Galati-Braila-Tulcea and Craiova-Slatina, designed to attract investment, create jobs and connect Romania to the future European hydrogen pipeline network.
“The first reflex is to say: let’s see the first valley and we’ll discuss it then. The concept was not adapted to the realities in the country. It’s too general and too optimistic. However, with clear rules and well-designed support schemes, it can become an asset,” said Ioan Iordache, Executive Director of the Hydrogen Energy Association.
The document establishes the legal framework for the production and use of renewable hydrogen, through Law 237/2023, which introduces mandatory quotas, certificates of origin and contracts for difference. However, the lack of implementing rules remains a major obstacle to investment.
Pilot projects already underway include the Ro-HydroHub Ramnicu Valcea (EUR 140 million through the NRRP), OMV Petrom’s 20 MW unit at Petrobrazi and Delgaz Grid’s 20HyGrid project, which tests hydrogen blending in gas networks.
“The National Hydrogen Strategy is a key programmatic document that creates predictability for the industry and connects Romania to the European hydrogen infrastructure and markets,” said Cristian Calin, Director of Green Gas Programs and Decarbonization Solutions, Delgaz Grid.
The rapid adoption of implementing rules and the launch of support schemes will be decisive for hydrogen to become, as the specialists emphasize, the ‘battery of the future’ and a pillar of the competitiveness of the Romanian economy.
EU Hydrogen Bank’s second auction
Seven projects for a total electrolyzer capacity of 1.88 GW proved unfeasible, even with the grants won in the European Hydrogen Bank’s second auction, out of a total of 2.34 GW. Developers have pulled out, some citing policy and infrastructure delays and uncertainty. One project in the first renewable hydrogen auction has also withdrawn.
The European Commission has invited ten projects from the reserve list of the European Hydrogen Bank’s second call for proposals to start preparing the documentation for signing grant agreements, after seven projects that were initially selected withdrew. The round, completed in May, resulted in financial support for 15 projects with a total electrolyzer capacity of 2.34 GW. Five remaining projects are in the general category, 453.46 MW in total, and the other three are in the maritime segment. These represent 108.5 MW. The ten reserve projects provide for 774 MW, compared to the 1.88 GW that have been abandoned, including the three largest proposed schemes.
Stuck on completion guarantees
Some developers of withdrawn proposals were unable to offer completion guarantees. Completion guarantees represent 8% of the grant, S&P Global said in a report. Companies cited delays and uncertainties related to policies and infrastructure.
“The auction’s completion guarantee is working as expected in weeding out companies that have bid too low or were forced to reassess their project maturity or financial viability between bidding and having to provide the completion guarantee,” said Johanna Schiele, Policy Officer at the EU Innovation Fund. Beneficiaries receive premiums from the European Hydrogen Bank budget that compensate for the difference between the production price and the quantity offered by buyers. The European Hydrogen Bank mechanism is designed to eliminate unfeasible investments. Before the end of the year, the European Commission is expected to publish the final list for the IF24 auction.
Projects withdrawn
Four sites are in Spain, two in Germany, and the seventh is in the Netherlands: The Zeevonk electrolyzer, the largest of them all. It would have had 560 MW and produced 411,000 tons over ten years, receiving EUR 0.6 per kilogram. Under the second round of the European Hydrogen Bank mechanism, EUR 1.2 billion was available, but only EUR 992 million was rewarded. The withdrawn projects could still be implemented if they finalize the funding structure, the European Commission points out.
Most back-up projects are located in Spain, which has access to low-cost renewable energy.
Grant agreement to be signed
Selected projects must sign a completion guarantee within two months of the invitation to sign a grant agreement, amounting to 8% of the total grant application. “This requirement serves as a maturity check for the project and as a penalty for projects that sign the support contract but then fail to achieve financial closure or entry into operation within the specified time frame,” the EC said.
The Commission stated that changes in market conditions, buyers, and infrastructure availability could alter the economics of the projects, with developers reassessing bids and maturity levels before signing completion guarantees.
Production start date
The EC expects to announce the final list of projects that will sign grant agreements by the end of 2025. Once grant agreements are signed, projects must reach financial close within 2.5 years and start production within five years.
Successful projects receive a fixed grant for every kilogram of renewable hydrogen produced over 10 years. The average levelized cost of hydrogen under the EU’s Renewable Fuels from Non-Biological Sources Directive ranges from EUR 5.50 to EUR 11.10/kg, the EC said, leaving a substantial price premium to be covered by customers. Platts, part of S&P Global Commodity Insights, valued the cost of green hydrogen production by alkaline electrolysis in Spain, backed by renewable energy purchase agreements, at EUR 7.62/kg on September 17. The assessment reflects a possible pathway for green hydrogen production in line with the EU Renewable Energy Directive.
Most of the projects that have applied for funding from the EU Hydrogen Bank are for proton exchange membrane electrolysis, despite the higher cost of the technology compared to the more established alkaline electrolysis. The main procurement sector is from industry, which also has among the highest payment availabilities, with purchase prices around EUR 6.95/kg, compared to EUR 7/kg for mobility and EUR 5.68/kg for the energy sector, according to the EC’s analysis of the bids. The main source of energy for projects bidding for the fund is onshore wind power, largely combining a grid connection with a renewable energy purchase agreement.
A third European Hydrogen Bank auction is planned for end 2025 with a budget of up to EUR 1 billion.
