The European Commission has announced the selection of nine hydrogen production projects under the third auction of the European Hydrogen Bank (EHB). The winning projects are located in Austria, Greece, Germany, Spain, Denmark, Finland, and Norway, and are expected to provide nearly 1.1 GW of electrolyser capacity.
According to estimates, the selected installations will produce more than 1.3 million tonnes of hydrogen over the first ten years of operation and are expected to contribute to avoiding around 9 million tonnes of CO₂ equivalent emissions. The total EU funding for the nine projects amounts to approximately €1.09 billion, provided through the EU Innovation Fund, financed by the Emissions Trading System (EU ETS).
The produced green hydrogen will support the decarbonisation of energy-intensive industries, including transport and the chemical sector. The European Commission emphasises that the projects will strengthen Europe’s industrial competitiveness, create jobs, and contribute to the EU’s energy independence and security.
The auction mechanism provides subsidies to cover the difference between production costs and the market price of hydrogen. Upon signing grant agreements, the selected projects will receive a fixed premium ranging from €0.44 to €3.49 per kilogram of certified hydrogen for a period of up to 10 years.
Funding is allocated through a competitive bidding process aimed at maximising greenhouse gas emission reductions while supporting the formation of a market price for green hydrogen. Projects are ranked according to their bid price and selected in ascending order until the Innovation Fund budget is fully allocated.
In addition, Spain and Germany are participating through the “Auctions-as-a-Service” mechanism, contributing a further €1.7 billion in national funding. Germany will support RFNBO hydrogen production with up to €1.3 billion, while Spain will contribute up to €440 million. This mechanism allows Member States to use national resources to support projects that applied under the EU-level auction, while reducing administrative burden and ensuring more coordinated allocation of public funding.
Projects from the Innovation Fund reserve list that fall within the available national budgets may be transferred to the relevant national authorities for grant agreement preparation. This option applies to three projects in Spain and three projects in Denmark. The “Auctions-as-a-Service” mechanism is open to all EU Member States and enables additional project support through a simplified procedure.
Source:EC
