May 21, 2025
The EU grants almost EUR 1 billion to 15 initiatives in a green hydrogen auction.
The European Commission (EC) has allocated EUR 992 million (USD 1117.2 million) to support 15 renewable hydrogen production projects in its second auction under the European Hydrogen Bank (EHB).
These facilities are projected to produce around 2.2 million tonnes of hydrogen over the next decade, leading to a reduction of more than 15 million tonnes of carbon dioxide emissions, according to the EC. This funding is sourced from the Innovation Fund, an EU initiative supporting innovative low-carbon technologies.
The projects are divided across five countries: Spain, Finland, Germany, the Netherlands, and Norway, and they span various sectors including transportation, the chemical industry, and the production of methanol and ammonia.
The 15 selected hydrogen production projects were chosen from 61 proposals submitted by 11 countries in a highly competitive auction. The largest project is the Zeevonk electrolyser in the Netherlands, with a capacity of 560 MW, followed by Germany’s 367.5-MW KASKADE project by Meridiam SAS and Spain’s 252-MW Villamartin H2 project by Galena Renovables.
Twelve of these projects are committed to producing hydrogen with fixed premium support of EUR 0.20 to EUR 0.60 per kg. For the first time, the Commission selected projects with off-takers in the maritime sector, which will require between EUR 0.45 and EUR 1.88 per kilogram and will receive EUR 96.7 million in grants. Overall, subsidies for the 15 projects will range from EUR 8 million to EUR 246 million over ten years, with grant agreements expected to be signed by September or October 2025.
The renewable hydrogen will be produced in Europe, and the subsidies aim to bridge the gap between production costs and market prices.
Spain, Lithuania, and Austria have previously committed up to EUR 836 million in national funding to support local projects through the “Auctions-as-a-Service” program, allowing member states to back initiatives that fit auction criteria but cannot be funded by the Innovation Fund due to budget constraints.
This auction follows the European Commission’s selection of seven projects in the first EU-wide renewable hydrogen tender launched in November 2023, of which six signed grant agreements.
The Commission has announced plans for a third tender at the end of 2025, with a budget of up to EUR 1 billion.
These facilities are projected to produce around 2.2 million tonnes of hydrogen over the next decade, leading to a reduction of more than 15 million tonnes of carbon dioxide emissions, according to the EC. This funding is sourced from the Innovation Fund, an EU initiative supporting innovative low-carbon technologies.
The projects are divided across five countries: Spain, Finland, Germany, the Netherlands, and Norway, and they span various sectors including transportation, the chemical industry, and the production of methanol and ammonia.
The 15 selected hydrogen production projects were chosen from 61 proposals submitted by 11 countries in a highly competitive auction. The largest project is the Zeevonk electrolyser in the Netherlands, with a capacity of 560 MW, followed by Germany’s 367.5-MW KASKADE project by Meridiam SAS and Spain’s 252-MW Villamartin H2 project by Galena Renovables.
Twelve of these projects are committed to producing hydrogen with fixed premium support of EUR 0.20 to EUR 0.60 per kg. For the first time, the Commission selected projects with off-takers in the maritime sector, which will require between EUR 0.45 and EUR 1.88 per kilogram and will receive EUR 96.7 million in grants. Overall, subsidies for the 15 projects will range from EUR 8 million to EUR 246 million over ten years, with grant agreements expected to be signed by September or October 2025.
The renewable hydrogen will be produced in Europe, and the subsidies aim to bridge the gap between production costs and market prices.
Spain, Lithuania, and Austria have previously committed up to EUR 836 million in national funding to support local projects through the “Auctions-as-a-Service” program, allowing member states to back initiatives that fit auction criteria but cannot be funded by the Innovation Fund due to budget constraints.
This auction follows the European Commission’s selection of seven projects in the first EU-wide renewable hydrogen tender launched in November 2023, of which six signed grant agreements.
The Commission has announced plans for a third tender at the end of 2025, with a budget of up to EUR 1 billion.