The European Commission has awarded €992 million in Innovation Fund grants to 15 large-scale renewable hydrogen projects across five EEA countries, significantly boosting the EU’s ESG and carbon neutral strategy. These projects are expected to produce nearly 2.2 million tonnes of green hydrogen, preventing over 15 million tonnes of CO₂ emissions over the next decade. 

This initiative, part of the European Hydrogen Bank’s second auction, targets high-emission sectors like transportation, chemicals, methanol, and ammonia. Each selected project will receive €8 million to €246 million in funding over ten years, supporting hydrogen production that replaces fossil fuels such as coal, oil, and natural gas. 

Twelve projects will operate under a fixed premium scheme, offering support between €0.20 and €0.60/kg of hydrogen. Notably, €96.7 million has been earmarked to decarbonize maritime transport—one of the hardest-to-abate sectors—with premiums ranging from €0.45 to €1.88/kg across three awarded projects. 

In addition, Spain, Lithuania, and Austria are participating in the EU’s ‘Auctions-as-a-Service’ platform, leveraging up to €836 million in national funding to back projects not selected by the EU. This mechanism enables countries to simplify procedures while utilizing the centralized EU auction infrastructure. 

“These hydrogen bank auctions are scaling up renewable hydrogen and replacing fossil fuels across the continent,” the Commission stated, citing benefits like enhanced energy independence, industrial decarbonization, and job creation. 

All selected projects must finalize grant agreements by October 2025, reach financial close within 2.5 years, and start production within five years. The Commission has also announced a third EHB auction in late 2025, with up to €1 billion in funding, and will soon launch a Hydrogen Mechanism to connect buyers and sellers within the hydrogen economy. 

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https://esgnews.com/eu-awards-e992m-to-15-projects-to-accelerate-renewable-hydrogen-production/