The European Commission has awarded 992 million euro to 15 renewable hydrogen projects under the second round of the European Hydrogen Bank. Targeting key sectors like transport, chemicals, methanol, and ammonia production, the selected initiatives aim to produce 2.2 million tonnes of green hydrogen over the next decade—helping to avoid 15 million tonnes of CO₂ emissions.
Funded through the EU Emissions Trading System (ETS), the scheme helps bridge the cost gap between renewable hydrogen production and current market prices. Most awarded projects requested support below €0.5/kg, confirming the downward trend in hydrogen premiums. Spain has 8 approved projects, followed by Germany (2), and the Netherlands and Finland (1 each). The largest hydrogen plants are based in Germany and the Netherlands, located close to industrial demand centers.
In the maritime hydrogen sector, three projects in Norway secured funding with premiums between €1.88/kg and €45/kg, underlining the complexity of decarbonizing shipping through hydrogen.
Each project will receive between 8 million euro and 246 million euro in fixed premium subsidies over a ten-year period. If all projects reach the Final Investment Decision (FID), Europe’s renewable hydrogen capacity could nearly double—from 2.7 GWel to 5 GWel.
Further support is expected under the Auction-as-a-Service mechanism, with Spain, Austria, and Lithuania planning to allocate an additional €836 million nationally. Projects must reach financial close within 2.5 years and begin green hydrogen production within five years.
This auction signals increasing momentum for hydrogen investment in Europe, supported by a strong policy framework, stable incentives, and growing confidence in hydrogen’s role in the clean energy transition.
Looking ahead, the European Commission plans to launch a third Hydrogen Bank auction in Q3 2025, with a similar budget of 1 billion euro to further accelerate hydrogen investment across the EU.
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