- The European Commission (EU) approved €400m for Austria and €36m for Lithuania to boost renewable hydrogen production through the European Hydrogen Bank’s “Auctions-as-a-Service” tool. Bidding will close in 2025.
- Austria aims to produce 112,000 tonnes and Lithuania 13,000 tonnes of renewable hydrogen, supporting the EU’s Clean Industrial Deal, REPowerEU Plan, and Hydrogen Strategy.
- Companies building electrolysers in both countries will receive direct grants, with funding tied to compliance with renewable fuels of non-biological origin (RFNBO) standards and additional renewable electricity.
The European Commission has approved state aid schemes for Austria (€400m) and Lithuania (€36m) to support renewable hydrogen production. Austria and Lithuania will use the European Hydrogen Bank’s “Auctions-as-a-Service” tool for auctions closing in 2025. These initiatives form part of the EU’s broader efforts to decarbonise industry and reduce reliance on Russian fossil fuels.
The aid links directly to key EU policies, including the Clean Industrial Deal, REPowerEU Plan, and the EU Hydrogen Strategy. Austria aims to produce 112,000 tonnes of renewable hydrogen, while Lithuania plans to produce 13,000.
CINEA will supervise the competitive bidding process, scheduled to close in the first quarter of 2025. Companies from across all EU Member States will submit bids. The process ensures the selection of projects offering the most cost-effective solutions for hydrogen production.
Companies constructing new electrolysers in Austria and Lithuania will benefit from direct grants based on the amount of renewable hydrogen produced. This approach encourages large-scale project development, helps reduce costs, and makes hydrogen a more viable energy source.
To qualify for aid, companies must meet the EU’s criteria for renewable fuels of non-biological origin (RFNBOs) and use additional renewable electricity to power hydrogen production. The European Commission ties the aid directly to these standards, ensuring the funding drives the green transition.
The “Auctions-as-a-Service” tool enables the European Hydrogen Bank to allocate funds efficiently. It incentivises projects with the most significant environmental benefits at the lowest cost. The tool promotes transparency, ensuring fair evaluation of all bids.
By strengthening hydrogen production, the EU aims to enhance Europe’s position in the global hydrogen economy. Countries worldwide are pushing toward net-zero emissions, and renewable hydrogen will play a critical role in decarbonising energy sectors.
The REPowerEU Plan focuses on reducing Europe’s reliance on Russian fossil fuels, especially amidst current geopolitical challenges. Renewable hydrogen supports this goal by offering a cleaner, more sustainable energy option. It also provides solutions for industries like steel and chemicals, which face challenges in reducing emissions.
The Clean Industrial Deal further advances Europe’s transition to a low-carbon future. By promoting renewable hydrogen, the EU aims to cut emissions while maintaining industrial competitiveness.
Overall, these schemes reflect the EU’s dedication to renewable hydrogen as both an economic driver and a tool for environmental sustainability. Austria and Lithuania’s plans will contribute significantly to the EU’s long-term climate goals while promoting industrial growth.