Fifteen selected projects will receive €992 million to produce renewable hydrogen across Europe. The initiative is expected to generate 2.2 million tons of hydrogen and cut 15 million tons of CO₂
The European Commission has announced the results of the second auction by the European Hydrogen Bank (EHB), aimed at boosting renewable hydrogen production within the European Economic Area. Funded through the Innovation Fund, the auction allocated €992 million across 15 selected projects. Over the next ten years, these projects are expected to produce around 2.2 million tons of renewable hydrogen while preventing over 15 million tons of CO₂ emissions.
Clean hydrogen for hard-to-decarbonize sectors
The renewable hydrogen will serve high-energy-demand industries such as transportation, chemical manufacturing, and the production of methanol and ammonia. The subsidies will help bridge the gap between the cost of clean hydrogen production and current market prices. This financial support is designed to facilitate large-scale market deployment, replacing fossil fuels like natural gas, coal, and oil in sectors where decarbonization remains a major challenge.
Fixed premiums between €0.20 and €0.60/kg awarded to 12 projects
Of the 15 winning initiatives, 12 were awarded fixed premiums per kilogram of renewable hydrogen produced, ranging from €0.20 to €0.60. For the first time, a dedicated share of the funding targeted the maritime sector. Three projects will receive a total of €96.7 million to supply hydrogen for bunkering operations, with variable premiums between €0.45 and €1.88 per kilogram.
The grants range from €8 million to €246 million per project, disbursed over a period of up to ten years and tied to the certified and verified production of renewable hydrogen. Project developers will now enter into negotiations with the European Climate, Infrastructure and Environment Executive Agency (CINEA), aiming to finalize agreements by September or October 2025.
Strengthening Europe’s energy independence with renewable hydrogen
The European Union views renewable hydrogen as a strategic tool to reduce dependence on imported fossil fuels. By enhancing energy security, supporting jobs, and accelerating industrial decarbonization, the initiative aligns with the broader goals of REPowerEU. This flagship plan seeks to achieve 10 million tons of domestically produced renewable hydrogen by 2030.
Member states join with “Auctions-as-a-Service” model
Alongside the EU-level auction, Austria, Spain, and Lithuania will unlock up to €836 million in national funding for additional hydrogen projects. These efforts are coordinated through the “Auctions-as-a-Service” model, which allows EU countries to use the European auction platform to support local projects that meet EU criteria but fall outside the budget cap of the centralized fund.
New platform to connect hydrogen buyers and producers
The Commission also announced the upcoming launch of the Hydrogen Mechanism, an online platform designed to match renewable hydrogen supply with demand. The tool will streamline market access, foster business connections between producers and buyers, and accelerate private and public investment in the sector.
Third hydrogen auction on the horizon: €1 billion expected by late 2025
As outlined in the Clean Industrial Deal, the European Commission is already preparing for the third EHB auction, scheduled for the end of 2025. With an expected budget of up to €1 billion, the goal is to continue building a robust renewable hydrogen ecosystem in Europe—one capable of attracting investment and delivering safe, sustainable, and globally competitive hydrogen production.
