The European Union announces third hydrogen production tender with €1 billion funding

The European Union will launch a third hydrogen production tender in the third quarter of 2025, with a €1 billion budget to support the growth of low-carbon hydrogen under its industrial plan.

Share:

Comprehensive energy news coverage, updated nonstop

8.25€/month*

*billed annually at 99€/year for the first year then 149,00€/year ​

Unlimited access • Archives included • Professional invoice

OTHER ACCESS OPTIONS

7-Day Pass

Up to 50 articles accessible for 7 days, with no automatic renewal

3 €/week*

FREE ACCOUNT

3 articles/month

FREE

*Prices are excluding VAT, which may vary depending on your location or professional status

Since 2021: 30,000 articles • 150+ analyses per week

The European Commission has announced that it will launch a third project call under the European Hydrogen Bank initiative in 2025, with a budget of €1 billion ($1.05 billion). This programme aims to support hydrogen production, a key element of the EU’s decarbonisation strategy. The launch of this call is planned for the third quarter of 2025, allowing member states to fund national projects using the “auction as a service” platform set up by the Commission, including unused EU funds. The support is designed to reduce the risks associated with hydrogen production, thus facilitating the adoption of this technology across the continent.

The launch of this third call follows the closure of the second auction of the Hydrogen Bank on February 20, 2025, which had a budget of €1.2 billion. The first auction in 2023, by contrast, was marked by disappointing results, with prices ranging from 37 to 48 cents per kilogram of hydrogen for a total of 1.5 GW of electrolyser capacity supported. These auctions are part of the EU’s efforts to reduce the cost of green hydrogen production, a rapidly growing market.

Recent market assessments estimate that the cost of producing green hydrogen via alkaline electrolysis in Germany, supported by renewable energy purchase agreements, is around €8.11 per kilogram, down from its peak of €14.50 in December 2023. This downward trend is seen as a positive sign for the long-term economic viability of the sector.

Regulatory Framework and New Initiatives

The European Commission is also establishing a clear regulatory framework for low-carbon hydrogen. A delegated act will be adopted in the first quarter of 2025 to define the criteria for low-carbon hydrogen, including production technologies via nuclear electrolysis and carbon capture for methane-based hydrogen production. This clarification aims to provide investors with the necessary security to support the growth of this industry.

Additionally, a hydrogen demand mechanism will be launched in the second quarter of 2025 to connect producers with buyers in industrial and transport sectors. This mechanism is expected to help structure demand and facilitate project financing, reducing risks for investors.

A Constantly Evolving Market

The European Union continues to strengthen its efforts to support the energy transition, but international competition remains fierce, with actors like Germany exerting pressure for a revision of the strict rules concerning electrolysis and hydrogen production. Current initiatives, including project calls and regulatory revisions, demonstrate the EU’s commitment to accelerating the development of hydrogen as a key solution for decarbonising the energy sector.

Plug Power finalised a deal with an institutional investor to raise $370mn through the immediate exercise of warrants, with the possibility of securing an additional $1.4bn if new warrants are exercised.
Air Liquide announces a $50mn investment to strengthen its hydrogen network on the US Gulf Coast, following long-term contracts signed with two major American refiners.
Global demand for industrial gases will grow on the back of hydrogen expansion, carbon capture technologies, and advanced use in healthcare, electronics, and low-carbon fuel manufacturing.
Green ammonia reaches a new industrial milestone with 428 active projects and over $11bn in investments, highlighting accelerated sector growth across Asia, the Middle East, Europe and the Americas.
Nel Hydrogen US will supply a containerised electrolyser to H2 Energy for a hydrogen production facility commissioned by the Association for Waste Disposal in Buchs, Switzerland.
UK-based manufacturer ITM Power has signed an engineering contract for a green hydrogen project shortlisted under the country's second Hydrogen Allocation Round.
Agfa strengthens its industrial position with the launch of a ZIRFON membrane production site for electrolyzers, backed by a €11mn European subsidy.
Driven by Air Liquide and SEGULA Technologies, the ROAD TRHYP project aims to lower hydrogen transport costs and improve safety through a series of technical innovations by 2030.
Qair obtains structured bank financing of €55mn for its Hyd’Occ ecosystem, integrating renewable hydrogen production and distribution in Occitanie, with commissioning scheduled before the end of 2025.
Swedish firm Metacon has secured a EUR7.1mn ($7.7mn) contract to deliver a 7.5 MW electrolysis plant to Elektra Power SRL, marking its operational entry into the Romanian market.
The Clean Hydrogen Partnership has closed its first call for Project Development Assistance (PDA), totaling 36 applications from 18 countries. Results are expected in October, with support starting in November.
Kandla port plans a 150,000-ton-per-year integrated renewable methanol unit, targeting the growing fleet of compliant vessels on the Singapore-Rotterdam maritime route.
OMV is investing several hundred million euros in a 140 MW electrolysis unit in Austria, set to produce 23,000 tonnes of green hydrogen annually to supply its Schwechat refinery.
Jolt Green Chemical Industries appoints Dyar Al-Safwah to engineer a high-performance electrode facility at King Salman Energy Park, backed by the Ministry of Energy.
With the certification of three new sites, Lhyfe takes the lead in the European RFNBO hydrogen market, reaching 21 MW of installed capacity across France and Germany.
VINSSEN becomes a central player in designing the world’s first commercial transport vessel fully powered by a fuel cell using ammonia as a hydrogen carrier.
The global hydrogen production market is expected to more than double by 2035, supported by technological advances and growing demand from transport, heavy industry and decarbonised energy systems.
Accelera will supply a 5MW electrolysis system at the Port of Schweinfurt, aiming to produce 2.2 tonnes of green hydrogen daily for industrial and logistics applications in central Germany.
The Sauda municipal council has approved the zoning plan for the Iverson project, paving the way for a 270 MW electrolysis facility powered by hydropower to produce renewable ammonia.
Sinopec reaches a milestone in hydrogen logistics with a 1,500 km journey from Shanghai to Hubei, supported by a network of 146 stations and 11 supply centres.

All the latest energy news, all the time

8.25€/month*

*billed annually at 99€/year for the first year then 149,00€/year ​

Unlimited access - Archives included - Pro invoice

7 DAY PASS

Up to 50 items can be consulted for 7 days,
without automatic renewal

3€/week*

*Prices shown are exclusive of VAT, which may vary according to your location or professional status.

Since 2021: 30,000 articles - +150 analyses/week.