Source: European Parliament
Since 2020, the EU has set up a comprehensive regulatory framework to support the scale up of renewable hydrogen, including enabling financing under the European Hydrogen Bank (EHB).
After two auctions already implemented under this financial initiative to support hydrogen production in Europe[1], by the end of 2025 the Commission will launch a third auction, with a budget of up to EUR 1 billion from the Innovation Fund (IF).
The IF also provides funding to hydrogen-related projects through its regular grants[2]. By the end of 2025, the results of the latest regular grant call (IF24) will be published and a new call will be opened.
Moreover, to enhance impact from its calls, the IF implemented the ‘as-a-Service’ feature[3], allowing Member States[4] to allocate national funding in addition to the Innovation Fund. This feature will be available again in upcoming calls.
The Commission also works to establish joint European auctions for imports of renewable hydrogen. Under a Team Europe approach, willing Member States will be able to pool funding and attract competitive bids from third-country producers, thus further supporting the decarbonisation of their industry and transport sectors as well as contributing to wider goals such as the development of key import infrastructure corridors.
The Commission will launch the Mechanism to support market development of hydrogen[5] in the third quarter of 2025. It will bring together buyers and sellers[6] on an online platform, enabling them to find potential commercial partners, and connecting them with financial support.
- [1] Through the three auction calls, the EHB will have made available EUR 3 billion in grants: https://climate.ec.europa.eu/eu-action/eu-funding-climate-action/innovation-fund/competitive-bidding_en.
- [2] Under the IF, more than 40 projects covering the full hydrogen value chain are already receiving a total of EUR 3 billion in regular grants.
- [3] https://climate.ec.europa.eu/eu-action/eu-funding-climate-action/innovation-fund/competitive-bidding_en#auctions-as-a-service-aaas.
- [4] Germany, Austria, Spain and Lithuania have already contributed, together, with almost EUR 1.2 billion in national resources in the IF23 and IF24 Auctions.
- [5] In accordance with the mandate received pursuant to Regulation (EU) 1789/2024 of the European Parliament and of the Council of 13 June 2024 on the internal markets for renewable gas, natural gas and hydrogen.
- [6] The Hydrogen Mechanism covers renewable and low-carbon hydrogen and its derivatives (ammonia, methanol, eSAFs).