In a decisive move to bolster the green hydrogen sector, the European Commission has selected 15 large-scale renewable hydrogen projects for nearly €1 billion in funding as part of the second European Hydrogen Bank auction. These projects will be supported by the EU Innovation Fund, which draws its resources from the EU Emissions Trading System (ETS).
Over the next decade, these initiatives are expected to generate up to 2.2 million tonnes of renewable hydrogen, providing vital fuel for decarbonising heavy industry, transport, and energy systems across the continent.
Wide Geographic Reach
The selected projects are distributed across five countries:
- Spain – 8 projects
- Norway – 3 projects
- Germany – 2 projects
- Finland – 1 project
- Netherlands – 1 project
Each project will now enter grant agreement negotiations with the European Climate, Infrastructure and Environment Executive Agency (CINEA). Agreements are expected to be signed by autumn 2025, with production to commence within five years.
Detailed Overview of Funded Projects
|
Project Name
|
Country
|
Electrolyser Capacity
|
Subsidy (€ / kg H₂)
|
|---|---|---|---|
| Vollamartin H2 | Spain | 252 MW | €0.20 |
| Puerto Serrano H2 | Spain | 49 MW | €0.25 |
| Kristenstadt P2X | Finland | 258 MW | €0.33 |
| SolWinHy Cadiz | Spain | 63 MW | €0.40 |
| H2LZ | Spain | 26 MW | €0.41 |
| AGS | Spain | 238 MW | €0.41 |
| AFF280 | Spain | 238 MW | €0.42 |
| H2CRI | Spain | 30 MW | €0.44 |
| KASKADE | Germany | 354 MW | €0.45 |
| TORDESILLASH2 | Spain | 17 MW | €0.48 |
| ZeVonk electrolyse | Netherlands | 411 MW | €0.60 |
| RjukanHS | Norway | 29 MW | €0.45 |
| Gen2-LH2 | Norway | 104 MW | €0.59 |
| HammerfestH2 | Norway | 12 MW | €1.88 |
The projects will receive fixed premium contracts for renewable hydrogen production, with payouts linked directly to verified volumes. This results-based mechanism ensures public funding is tied to real-world decarbonisation outcomes.
A Major Leap for the Hydrogen Economy
Together, these projects will deploy over 2.7 GW of electrolyser capacity – a significant increase from the first auction. The fixed premiums awarded range from €0.20 to €1.88 per kilogram, reflecting the diverse technologies, locations, and delivery models employed.
The selected projects aim to displace fossil-derived hydrogen and other carbon-intensive fuels across sectors such as:
- Industrial refining and fertiliser production
- Maritime transport and logistics
- Synthetic fuels and ammonia production
- Grid injection and seasonal energy storage
The most competitively priced project, Vollamartin H2 in Spain, secured a subsidy of just €0.20/kg, while HammerfestH2 in Norway required the highest premium at €1.88/kg, highlighting the varied economics of green hydrogen across Europe.
What’s Next?
This auction marks a major step toward establishing a robust European hydrogen market. Looking ahead, the Commission plans to launch a third hydrogen auction in late 2025, potentially widening eligibility and increasing support mechanisms.
The European Hydrogen Bank aims to bridge the gap between green hydrogen supply and demand, helping the EU meet its REPowerEU target of producing 10 million tonnes of renewable hydrogen annually by 2030.
Haush Insight:
As Europe scales up its clean hydrogen infrastructure, collaboration between private developers, regulators, and public funders will be key. These projects offer a glimpse into the continent’s accelerating shift towards a low-carbon industrial base and energy system.
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