-- The European Commission has awarded about 1.09 billion euros ($1.18 billion) to nine hydrogen production projects across seven countries, marking a significant expansion of the European Hydrogen Bank.
These projects are expected to deliver 1.1 gigawatts of electrolyzer capacity, the commission said on Thursday.
The funding, sourced from the EU Emissions Trading System Innovation Fund, acts as a fixed premium to bridge the gap between high production costs and market prices.
Successful bidders will receive subsidies ranging from 0.44 to 3.49 Euro per kilogram of certified hydrogen for up to 10 years, as per the press release.
Over their first decade of operation, the facilities are projected to produce 1.3 million tonnes of renewable and low-carbon hydrogen, potentially avoiding 9 million tonnes of CO2 emissions, it stated.
Under the terms of the program, the European Climate, Infrastructure and Environment Executive Agency expect to sign formal grant agreements by the fourth quarter of 2026.
Developers must reach financial close within 30 months of signing and commence operations within five years.