EU awards €1.09bn to nine hydrogen projects via European Hydrogen Bank
- Nine electrolytic hydrogen projects across seven EEA countries won ~€1.09bn from the Innovation Fund, adding ~1.1 GW electrolyser capacity and expected to produce >1.3 Mt H2 over 10 years.
- Support is paid as fixed premiums of €0.57–€3.49/kg of certified hydrogen for up to 10 years to cover the gap between production costs and market prices.
- Notable awardees include MorGen (NJK) 300 MWe, Cloudberry (Vetyalfa) 500 MWe and Hy2gen Nordic (ALBA) 100 MWe among the nine selected projects.
- Grant agreements are expected to be signed in Q4 2026; projects must reach financial close within 2.5 years of signature and enter operation within five years, with CINEA monitoring delivery.
Overview
The European Commission selected nine electrolytic hydrogen projects under the third European Hydrogen Bank auction, spanning seven EEA countries; they are expected to add ~1.1 GW of electrolyser capacity, produce >1.3 Mt H2 over their first 10 years and avoid an estimated ~9 Mt CO2e, receiving around €1.09 billion from the Innovation Fund (ETS).
Auction mechanism and funding
Support is paid as a fixed premium to bridge the gap between production costs and market prices, ranging €0.57–€3.49/kg of certified hydrogen for up to 10 years; Spain and Germany use the Auctions-as-a-Service feature to add up to €1.7 billion of national funds (€1.3bn Germany, €440m Spain) for projects in their territories.
Project highlights
Notable awards include MorGen (NJK) 300 MWe (445 kt H2 bid), Vetyalfa/Cloudberry 500 MWe (509 kt), and Hy2gen Nordic/ALBA 100 MWe (144 kt); the auction included a dedicated maritime‑aviation topic with higher bid prices for two Norwegian projects.
Timeline and conditions
CINEA will prepare grant agreements, with signatures expected in Q4 2026; projects must reach financial close within 2.5 years of signature and enter operation within five years, backed by completion guarantees and ongoing CINEA monitoring.
Source: European Commission