European Commission has announced that it has selected nine renewable hydrogen production projects under the third auction of the European Hydrogen Bank (EHB), aimed at accelerating Europe’s clean energy transition and industrial decarbonization.
The selected companies include Hellenic Hydrogen, Hy2gen Nordic, Gen2 Energy, and several other hydrogen developers across Europe.
The agreements are expected to be signed during the fourth quarter of 2026. Projects must reach financial close within two and a half years after signing and begin operations within five years.
Hydrogen projects expected to cut emissions
The selected projects are located in seven countries within the European Economic Area. Together, they are expected to provide nearly 1.1 GW of electrolyzer capacity and produce more than 1.3 million mt of renewable hydrogen during their first 10 years of operation.
According to the Commission, the projects could help avoid approximately 9 million mt of CO2 equivalent emissions. The renewable hydrogen produced is expected to support decarbonization in energy-intensive sectors.
€1.09 billion allocated through Innovation Fund
The projects will receive approximately €1.09 billion in funding from the EU Innovation Fund, which is financed through the EU Emissions Trading System (ETS). The initiative is also intended to strengthen Europe’s industrial competitiveness, energy security, and clean technology leadership.
Under the auction system, selected projects receive fixed subsidies to help bridge the gap between hydrogen production costs and market prices. The awarded premiums range from €0.44/kg to €3.49/kg of certified renewable hydrogen for a maximum period of 10 years.
In addition, Germany and Spain are also participating through the “Auctions-as-a-Service” mechanism, contributing an additional €1.7 billion in national funding. Germany will provide up to €1.3 billion for renewable fuels of non-biological origin (RFNBO) hydrogen production, while Spain will allocate up to €440 million.
