European Commission accepts €400m hydrogen production schemes
The Commission approved the Austrian and Lithuanian schemes under EU State aid rules.
Austria has secured €400m, while Lithuania will receive €36m, with both funds aimed at accelerating the green transition and reducing dependence on fossil fuels.
The executive arm of the EU has recently approved €400m in State aid schemes to support the production of renewable hydrogen in Austria and Lithuania and to reduce dependence on fossil fuels.
Austria has secured €400 million, while Lithuania will receive €36 million. As stated by the commission, both countries have put in place “sufficient safeguards” to ensure that the schemes have a “limited impact on competition and trade”.
Contributing to key EU goals, including the Clean Industrial Deal, the REPowerEU Plan, and the EU Hydrogen Strategy, the aid will aim to improve energy security.
Teresa Ribera, Executive Vice for Clean, Just and Competetive Transion spoke on how the schemes are set at reducing the cost of hdyrogen.
Ribera said: “They will support the most competitive projects in Austria and Lithuania, reducing the burden on taxpayers and minimising possible market distortions. Austria and Lithuania are among a growing number of Member States choosing to make use of this EU auction, which offers an accelerated solution for awarding public support in this strategic sector”.
The aid will take the form of a direct grant per kilogram of renewable hydrogen produced, and be granted for a maximum of 10 years, with both Austria and Lithuania planning to use the European Hydrogen Bank’s “Auctions-as-a-Service” tool to drive the production of renewable hydrogen.
The schemes were evaluated based on EU State aid rules, specifically under Article 107(3)(c) of the Treaty on the Functioning of the European Union. It found that the schemes were necessary for decarbonising key sectors like industry, transport, and energy.
As stated by the EU commission, Austria aims to produce up to 112,000 tonnes of renewable hydrogen, while Lithuania targets 13,000 tonnes. This will result in significant CO2 savings of up to 536,000 tonnes in Austria and 61,000 tonnes in Lithuania.
This follows ambitious targets for renewable hydrogen use, with 42% of industrial hydrogen expected to be renewable by 2030.
