Almost €1 Billion Invested in 15 Green Hydrogen Projects
The EU just announced a new investment that will help reduce carbon dioxide emissions in the future. The Commission declared that it would fund 15 renewable hydrogen production projects across the European Economic Area.
More specifically, the EU will invest €992 million in these projects, aiming to produce 2.2 million tons of renewable hydrogen. These efforts will span over ten years.
The Selected Projects
15 projects were selected as part of the new efforts to create renewable hydrogen and reduce carbon dioxide emissions. These include:
- H2LZ
- VILLAMARTIN H2
- Kristinestad PtX
- PUERTO SERRANO H2
- AGG280
- AGS
- KASKADE
- Zeevonk electrolyser
- TORDESILLASH2
- H2-Hub Lubmin
- HammerfestH2
- Gen2-LH2
- RjukanH2
Out of all the chosen projects, 12 of them are dedicated to creating renewable hydrogen with a €0.20 – €0.60 per kilogram premium support.
This is the first time that a dedicated budget for hydrogen producers is provided by an auction with maritime sector off-takers. Three bids from the listed projects received €96.7 million in grants. They will use €0.45 – €1.88 per kilogram. Every subsidy for the chosen projects goes from €8 million to €246 million over 10 years.
Why Is It Crucial to Boost Renewable Hydrogen Capacity?
Encouraging efforts to increase the production of renewable hydrogen is a priority. This comes following challenges regarding energy insecurity, but also climate change. What makes hydrogen from renewable electricity a good choice is the fact that it doesn’t release any CO2 when used. So, it can replace fossil fuels in some fields, such as long-haul transport, steelmaking, and more.
This way, the EU will not only reduce the negative effects on the environment but also give a push to green innovation and jobs. It will become possible to build electrolyzer plants, train a new clean energy professional generation, and even come up with storage solutions.
Furthermore, the EU will also be able to rely less and less on imported oil and gas, especially those that come from unfriendly regions. It will invest in its own green fuel instead.
What Will Happen Moving Forward?
Every project that was picked for funding will be invited to prepare its grant agreement with the European Climate, Infrastructure and Environment Executive Agency. All agreements are expected to be signed by September-October 2025.
It is required for signed projects to reach their financial close over two and a half years after receiving the signature. Moreover, they must start creating renewable hydrogen over the next five years.
A fixed premium subsidy will be given to each project for a period of up to ten years. This will allow them to generate certified and verified renewable hydrogen.
There is also another European Hydrogen Bank auction planned for the end of the year. It was announced in the Clean Industrial Deal and will have a budget of €1 billion. Under the European Hydrogen Bank, the Commission will also launch the Hydrogen Mechanism. This will allow buyers and sellers to come together and share information.
