This Week in Hydrogen: New Market Mechanism and the Push for Carbon Neutrality

Air Liquide Launches the World’s First Industrial Facility for Converting Ammonia into Hydrogen

Air Liquide has announced the successful launch of the world’s first industrial-scale ammonia cracking facility, located in the Port of Antwerp-Bruges, Belgium. With a capacity of 30 tons of ammonia per day, the new pilot facility showcases a breakthrough technology for converting ammonia back into hydrogen — a crucial link in developing global low-carbon supply chains.

Ammonia (NH₃), composed of hydrogen and nitrogen, is emerging as an efficient hydrogen carrier. It can be produced cost-effectively in regions with abundant renewable energy and transported via the existing global infrastructure to end users, where it is then converted back into hydrogen. This presents a viable path for decarbonizing industry and transportation.

The new technology incorporates proprietary Air Liquide innovations in key areas such as:

  • process safety,

  • material testing,

  • advanced catalysis,

  • ammonia combustion,

  • efficient molecular separation.

The project demonstrates Air Liquide’s ability to scale technologies from the lab to industrial deployment. The facility is supported by the Flemish Government’s Agency for Innovation and Entrepreneurship (VLAIO).

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EU Funds Eight Hydrogen Projects Focused on Transport and Energy Efficiency

The European Union is allocating €2.9 billion to 61 projects through its Innovation Fund – NetZero Technologies, with eight of those specifically focused on cutting-edge hydrogen solutions. These initiatives span aviation, shipping, and heavy-duty transport, aiming to accelerate decarbonization through new applications of hydrogen technology.

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Key initiatives include:

  • Endor (Denmark) – large-scale production of sustainable aviation fuel (eSAF);

  • Luxia (Spain) – integrated production of renewable hydrogen, methanol, and ammonia;

  • H2CWAY (Czech Republic) – production of intercity buses powered by two types of hydrogen fuel cells;

  • MAGHYC (Finland) – onboard hydrogen generation for cruise ships with carbon capture;

  • ODIN (Norway) – retrofitting 15 Cessna aircraft with hydrogen-electric propulsion;

  • RjukanLH2 (Norway) – establishing a liquid hydrogen supply chain for four container ships;

  • PP2XH (Estonia) – full value chain for e-methanol;

  • H2EAT (Italy) – hydrogen-powered wall-mounted boiler production line.

Additional milestones in the hydrogen sector:

  • Bosch commissioned a 2.5 MW electrolyzer in Germany capable of producing over 1 ton of hydrogen per day;

  • Lhyfe will supply 90 tons of certified RFNBO hydrogen to a German bus network over 15 months;

  • Everfuel has begun exporting green hydrogen from Denmark to Germany, produced at the HySynergy facility;

  • Topsoe opened Europe’s largest plant for solid oxide electrolyzer cells (SOEC) and will supply ammonia production technology for a U.S.-based project, enabling dynamic operation based on hydrogen availability.

The European Commission will announce new project calls under the Innovation Fund in December 2025. Funding comes from the EU Emissions Trading System (EU ETS).

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EU Launches Hydrogen Mechanism: A New Era for Clean and Competitive Energy

On November 12, 2025, the European Commission launched its first call for interest under the Hydrogen Mechanism — an initiative designed to connect prospective hydrogen suppliers and buyers within the EU.

This new tool is vital for the future of energy, particularly for sectors that are difficult to decarbonize. The mechanism covers renewable or low-carbon hydrogen, as well as derivatives such as ammonia, methanol, sustainable aviation fuels, and e-methane.

Key benefits of the Hydrogen Mechanism:

  • Enhances transparency in the hydrogen market by increasing visibility for European and international companies;

  • Links supply and demand, reducing market uncertainty;

  • Supports the development of hydrogen infrastructure and access to financing;

  • Encourages new business opportunities in an open and transparent environment.

EU Commissioner for Energy and Housing Policy Dan Jørgensen stated:
“By connecting buyers and sellers, this mechanism will help us build a cleaner and more competitive energy and economic future for the EU.”

Key dates:

  • Nov 12, 2025 – Jan 2, 2026: Supplier bids accepted

  • Jan 19, 2026: Anonymized offer information published

  • Jan 19 – Mar 20, 2026: Buyers may express interest

  • Mar 31, 2026: Results announced

The mechanism is part of the broader European Hydrogen Bank and the Energy and Raw Materials Platform, which aims to coordinate joint purchases and secure access to strategic resources. The initiative runs through the end of 2029 and marks a key step toward EU climate neutrality by 2050.

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