The European Commission has selected nine hydrogen production projects across seven European Economic Area countries for around €1.09 billion in EU funding, with the schemes expected to install almost 1.1 gigawatts of electrolyser capacity and produce more than 1.3 million tonnes of hydrogen over their first decade.
The money will come from the EU Innovation Fund, which is financed through the EU Emissions Trading System (ETS) — a cap-and-trade scheme that requires certain sectors to buy permits for their greenhouse gas emissions, the Commission informed in a statement on Thursday.
Projects will receive a fixed premium of between €0.57 and €3.49 per kilogramme of hydrogen produced, paid for up to 10 years after grant agreements are signed.
The nine projects are expected to avoid about 9 million tonnes of carbon dioxide equivalent emissions over 10 years, based on Commission estimates.
The selected schemes are located in Greece, Spain, Denmark, Austria, Finland, Germany and Norway, with the largest listed capacities including a 500 megawatt project in Finland (Cloudberry) and a 300 megawatt project in Denmark (NJK).
Extra national funding from Germany and Spain
Germany and Spain are also taking part through an “Auctions-as-a-Service” option, adding up to €1.7 billion in national funding on top of the EU awards, the Commission said.
Germany will provide up to €1.3 billion and Spain up to €440 million.
The European Climate, Infrastructure and Environment Executive Agency (CINEA) will start preparing grant agreements with the selected projects, with signatures expected in the last quarter of 2026.
The Commission said the third European Hydrogen Bank auction closed on 19 February 2026 and drew 58 bids from 11 countries, which it said was more than six times the available €1.3 billion budget.
