EuroWire, BRUSSELS: The European Commission has selected nine hydrogen production projects for about €1.09 billion in EU support, in the latest award round under the European Hydrogen Bank. The projects, spread across seven European countries, are expected to add almost 1.1 gigawatts of electrolyser capacity and produce more than 1.3 million tonnes of hydrogen during their first 10 years of operation, with funding sourced from EU Emissions Trading System revenues through the Innovation Fund.
The selected projects are located in Greece, Spain, Denmark, Austria, Finland, Germany and Norway. Five were chosen under the general renewable hydrogen category, two under a low-carbon hydrogen category and two under a segment for suppliers serving maritime or aviation buyers. In the Commission’s published results, the winning bids ranged from €0.44 per kilogram to €3.49 per kilogram, reflecting the price levels submitted by developers across the three auction segments.
The third auction drew 58 bids from projects in 11 countries seeking €8.4 billion in support, far above the €1.3 billion initially available. It was also the first round to cover electrolytic low-carbon hydrogen alongside renewable fuels of non-biological origin, while adding a dedicated channel for producers supplying the maritime and aviation sectors. The results underline the scale of demand for public funding as Europe expands hydrogen capacity tied to industrial use and harder-to-abate transport markets.
Funding terms and project mix
Under the auction design, support will be paid as a fixed premium tied to verified and certified hydrogen output for as long as 10 years after projects enter operation. The European Commission said the selected schemes are expected to avoid roughly 9 million tonnes of carbon dioxide equivalent over their first decade. Of the total auction budget, €600 million was earmarked for renewable hydrogen, €400 million for renewable and low-carbon hydrogen, and €300 million for supply linked to maritime or aviation off-takers.
The nine projects have now been invited to begin grant agreement preparation, the next step before funding can be formally confirmed. Under the auction rules, selected developers must provide a signed completion guarantee within two months, reach financial close within two and a half years and enter operation within five years. If a project withdraws, the Commission can move down a reserve list. Some reserve-list projects may also be transferred to national support tracks in Spain and Germany under the auction’s auctions-as-a-service structure.
Broader EU hydrogen push
The award adds to a financing program the European Commission launched in 2022 through the European Hydrogen Bank to help build a commercial hydrogen market and narrow the gap between production costs and market prices. The bank is not a standalone lender but a policy instrument backed by EU funding tools. The previous domestic auction selected 15 projects for €992 million, while the first round awarded nearly €720 million to seven projects, making this the third consecutive large-scale EU hydrogen subsidy allocation.
The selected portfolio includes larger projects such as Finland’s 500-megawatt Cloudberry scheme and Denmark’s 300-megawatt MorGen project, alongside smaller industrial and transport-linked facilities in other countries. Across the full list, the projects cover multiple production categories and end-use markets while remaining within the Innovation Fund framework set by the Commission. The European Commission said the final list of signed projects under the auction is expected near the end of 2026.