The European Commission has approved two new state aid schemes under EU rules to the production of renewable hydrogen in Austria and Lithuania. Austria will receive €400 million, while Lithuania will be allocated €36 million to aid in the development of renewable hydrogen production, aiming to meet the targets set out in the European Hydrogen Strategy and the Clean Industrial Deal. 1u516d

Competitive bidding process for funding allocation 2j5m4y

The approved state aid schemes are part of the European Hydrogen Bank's “Auctions-as-a-Service” tool, designed to promote renewable hydrogen production across the EU. Through a competitive bidding process, the schemes will the production of up to 112,000 tonnes of renewable hydrogen in Austria and 13,000 tonnes in Lithuania, leading to a reduction of up to 536,000 tonnes and 61,000 tonnes of CO2 emissions, respectively. The funding is aligned with the objectives of the REPowerEU Plan, which aims to reduce dependence on Russian fossil fuels and accelerate the green transition.

Impact on EU hydrogen goals and the green transition 1i1q44

The state aid will be allocated through a competitive auction process, scheduled to conclude by the first quarter of 2025. The process will be managed by the European Climate, Infrastructure, and Environment Executive Agency (CINEA), which will evaluate and rank bids for renewable hydrogen projects across all EU Member States. Companies planning to construct new electrolysers in Austria and Lithuania will be eligible to apply for the .

The aid will be granted in the form of direct grants per kilogram of renewable hydrogen produced, with a maximum duration of ten years. Beneficiaries must also comply with EU criteria for producing renewable fuels of non-biological origin (RFNBOs), which includes contributing to the development or financing of additional renewable electricity needed to produce the hydrogen.

The Commission assessed the schemes according to EU State aid rules, particularly Article 107(3)(c) of the Treaty on the Functioning of the European Union. It concluded that the schemes are necessary and appropriate to the renewable hydrogen sector, providing the necessary incentives to reduce CO2 emissions and promote decarbonization in industrial, transport, and energy sectors.

European Hydrogen Bank’s role in achieving EU’s renewable hydrogen goals 63195g

The European Hydrogen Bank initiative aims to close the investment gap for renewable hydrogen and contribute to reaching the EU target of 20 million tonnes of renewable hydrogen by 2030, helping to meet REPowerEU and climate neutrality objectives. The scheme’s auctions will also facilitate the linking of national and EU hydrogen systems, streamlining the process for project developers across the EU.