© European Union
Six renewable hydrogen projects selected under the EU’s 2024 Innovation Fund hydrogen auction have signed grant agreements worth a combined €270.6mn, with funding sourced from revenues of the EU Emissions Trading System. The projects are located in Spain, Finland and Norway and will install a combined 381.25 MW of electrolyzer capacity.
Maritime hydrogen targeted in dedicated auction window
Two of the projects were awarded under a dedicated maritime category, receiving more than €35mn to supply renewable hydrogen to shipping-related off-takers. The EU has identified maritime transport as a priority sector for hydrogen support due to limited alternatives for decarbonising long-distance shipping and port operations.
Cost gap support through fixed premiums
The auction operates under the domestic pillar of the European Hydrogen Bank, designed to bridge the gap between the cost of producing renewable fuel of non-biological origin (RFNBO) hydrogen and the price industrial and transport users are willing to pay. Projects receive a fixed premium per kilogram of certified hydrogen produced for up to 10 years, reducing revenue uncertainty for developers.
Project pipeline and emissions impact
Together, the six projects are expected to produce about 500,000 tonnes of renewable hydrogen over a decade, avoiding nearly 3.4mn tonnes of carbon dioxide emissions based on EU ETS benchmarks. Bids submitted ranged from €0.33 to €1.88 per kilogram, highlighting wide cost dispersion across locations, scales and end-use applications.
| Project | Coordinator | Country | Bid volume (kt H₂, 10 yrs) | Expected CO₂ avoidance (kt, 10 yrs) | Bid price (€/kg) | Capacity (MWe) |
|---|---|---|---|---|---|---|
| Kristinestad PtX | Koppö Energia Oy | Finland | 258 | 1,763 | 0.33 | 200 |
| H2CRI | Green Devco Energy 6 | Spain | 30 | 204 | 0.44 | 30 |
| NOON | Iberdrola Clientes | Spain | 161 | 1,104 | 0.84 | 120 |
| GH2Move-VLC | Diverxia Infraestructuras | Spain | 2 | 15 | 0.85 | 5 |
| RjukanH2 | Norwegian Hydrogen | Norway | 29 | 201 | 0.45 | 18.75 |
| HammerfestH2 | Green H | Norway | 12 | 80 | 1.88 | 7.5 |
National funding expands auction reach
In parallel, Spain, Lithuania and Austria have allocated up to €836mn through the Innovation Fund’s “auctions-as-a-service” mechanism, allowing member states to fund additional projects that met auction criteria but exceeded the EU budget. Projects funded nationally will be announced by respective governments.
Implications for investors and policymakers
Projects must reach financial close within two and a half years and begin production within five years, milestones that will test whether subsidised hydrogen can move from contract to construction. With a third hydrogen auction launched in December 2025 and offering up to €1.3bn, the EU is reinforcing its reliance on price support to anchor early hydrogen supply, even as long-term demand in industry and transport remains uncertain.
