The European Union is taking bold steps to modernize its energy infrastructure by funding renewable hydrogen production. Through a €992 million investment in 15 large-scale projects, the EU aims to cut emissions, replace fossil fuels, and build a cleaner, more resilient energy system.
This significant investment, delivered through the second European Hydrogen Bank (EHB) auction, supports projects in hard-to-decarbonize sectors such as transport, chemicals, methanol, and ammonia production. Most of the projects will operate under a fixed premium scheme of €0.20 to €0.60 per kilogram of hydrogen.
Targeting the Maritime Sector
For the first time, the auction includes €96.7 million dedicated to maritime hydrogen applications—an effort to decarbonize the shipping industry, one of the most challenging sectors to green. Three maritime-focused projects secured funding, with premium needs between €0.45 and €1.88 per kilogram.
“These auctions bridge the gap between production costs and market price, fast-tracking clean hydrogen deployment,” said the European Commission.
National Co-Funding via Auctions-as-a-Service
In parallel, Spain, Lithuania, and Austria will activate the ‘Auctions-as-a-Service’ model, leveraging up to €836 million in additional national funding. This mechanism allows member states to piggyback on the EU’s centralized auction system while simplifying access to national subsidies for projects that didn’t secure Innovation Fund support.
Next Steps and Future Outlook
Each of the 15 selected projects will receive between €8 million and €246 million over a 10-year period. Final grant agreements with the European Climate, Infrastructure and Environment Executive Agency (CINEA) are expected by September/October 2025. All projects must achieve financial close within 2.5 years and begin hydrogen production within five years.
Looking ahead, the EU will launch a third EHB auction in late 2025 with a budget of up to €1 billion. The Hydrogen Mechanism, an upcoming online platform, will support matchmaking between hydrogen producers and buyers, further strengthening Europe’s clean energy market.