The European Commission has approved two important state aid schemes to increase renewable hydrogen production in Austria and Lithuania.
With 436 million euros funding, these clean hydrogen initiatives are in line with the clean industry trade, the Repowereu program and the broader European Union goals under the EU hydrogen strategy.
The move presents an important step to reduce Europe’s dependence on Russia’s fossil fuels while enhancing the EU’s industrial competitiveness in the global hydrogen economy.
Through the European Hydrogen Bank’s innovative “service as an auction” tool, these projects will play a key role in achieving the EU’s ambitious goal of producing 2 million tonnes of renewable hydrogen by 2030.
“We’ve seen you get a lot of effort into making things easier,” said Teresa Rivera, vice president of a clean, fair and competitive transition.
“They support the most competitive projects in Austria and Lithuania, reducing taxpayer burdens and minimizing possible market distortions.
“Austria and Lithuania are one of many member states that have chosen to take advantage of this EU auction.
European Hydrogen Bank: Promotion of investment in green energy
The European Hydrogen Bank is an EU-led initiative designed to connect suppliers to potential consumers on the continent while filling the investment gap in renewable hydrogen production.
It supports both domestic hydrogen production and imports, ensuring Europe remains at the forefront of the green energy transition.
The initiative is funded primarily through revenue from the EU Emissions Trade System (ETS) and operates under the Innovation Fund.
The European Hydrogen Bank aims to encourage cost-competitive production by implementing a structured hydrogen auction system, thereby encouraging scalability and market adoption.
Austria and Lithuania plan to increase hydrogen production
The recently approved Austrian and Lithuanian national aid scheme will promote combined production of 125,000 tonnes of renewable hydrogen, leading to a significant reduction in carbon footprint. in particular:
Austria: The 400 million euro scheme aims to produce 112,000 tonnes of renewable hydrogen, avoiding approximately 536,000 tonnes of CO2 emissions. Lithuania: The 36 million euro scheme supports the production of 13,000 tons of renewable hydrogen and prevents approximately 61,000 tons of CO2 emissions.
These projects will contribute significantly to the national hydrogen targets of countries and support the broader EU mission to increase the share of non-biological origin (RFNBO) renewable fuels in both transportation and industrial applications.
A competitive bidding process to ensure fair and effective distribution
Financial aid under these schemes will be distributed through the competitive bidding process, which concludes in the first quarter of 2025.
European Climate, Infrastructure and Environmental Executive Agency (CINEA) oversees the process and ensures transparency and efficiency of fund allocation.
Companies planning to build new electrolyzers in Austria and Lithuania are eligible to participate if they meet strict EU RFNBO compliance standards.
The grant will be awarded per kilogram of renewable hydrogen produced, and financial support will be extended for up to 10 years.
Also, beneficiaries need to demonstrate their commitment to deploying additional renewable electricity and ensure that hydrogen production is truly sustainable and contributes to decarbonization goals.
The future of renewable hydrogen in Europe
The approval of these Austrian and Lithuanian national aid schemes is a key milestone in the EU’s renewable energy strategy.
By providing solid financial support and promoting a competitive bidding environment, Europe lays the foundation for a self-sufficient green hydrogen economy.
As the auction deadline for 2025 approaches, industry players are expected to seize this opportunity, further strengthening Europe’s leadership in the global renewable hydrogen market.
With continued investment and policy support, the EU is on track to achieve its long-term vision for a climate-neutral future equipped with clean energy solutions.
Source link
