EU backs €2b renewable hydrogen fund

The European Commission, along with Spain, Lithuania, and Austria, announced new financial support for renewable hydrogen development on Monday, mobilising nearly €2 billion in funding.

The funds will support renewable hydrogen production through the Innovation Fund’s ‘Auctions-as-a-Service’ scheme, part of the second European Hydrogen Bank auction set to launch on December 3.

The EU will contribute €1.2 billion, with Spain, Lithuania, and Austria adding over €700 million in national funds.

Spain will allocate between €280 million and €400 million, Lithuania will provide around €36 million, and Austria will commit €400 million to the initiative. This funding aims to meet national and EU clean energy targets and support the decarbonisation of European industries.

The ‘Auctions-as-a-Service’ platform allows countries to finance additional projects even after the Innovation Fund’s budget is exhausted, enhancing the efficiency of funding for renewable hydrogen.

Projects selected for the scheme will receive a fixed premium to cover production costs for up to 10 years, contributing to the EU’s renewable hydrogen goals and the broader REPowerEU Plan.