The EU has allocated more than €1 billion to nine hydrogen projects across Europe, aiming to accelerate industrial decarbonisation and reduce dependency on fossil fuels, while highlighting ongoing reliance on subsidies to scale the sector.
The European Commission has awarded more than €1 billion in support for nine hydrogen production projects in the latest round of the European Hydrogen Bank, in a move intended to accelerate the bloc’s industrial decarbonisation push.
The projects, spread across seven countries in the European Economic Area, are expected to add almost 1.1 gigawatts of electrolyser capacity and generate more than 1.3 million tonnes of hydrogen over their first decade of operation. The Commission said the resulting emissions savings would amount to roughly 9 million tonnes of carbon dioxide equivalent.
Funding will come from the Innovation Fund, which is financed through the EU Emissions Trading System. The selected schemes will share about €1.09 billion in support, with payments structured as a fixed premium per kilogramme of verified hydrogen produced over a period of up to 10 years. The subsidy model is designed to narrow the gap between the cost of production and what industrial buyers are willing to pay.
Officials say the aim is to push clean hydrogen into sectors where electrification is difficult, including chemicals, heavy transport and other energy-intensive industries. The Commission has also cast the programme as part of a wider effort to bolster Europe’s competitiveness, support jobs and reduce dependence on imported fossil fuels.
According to the European Commission, the European Hydrogen Bank was created to help build a full hydrogen value chain in Europe and unlock private investment by reducing early-stage commercial risk. The bank operates through several pillars, including domestic support for production inside the EEA, international cooperation and measures to improve market transparency.
The third auction follows earlier rounds that have already channelled substantial public money into the sector. In January, six projects from the 2024 auction signed grant agreements worth a combined €270.6 million, including support for maritime-linked hydrogen supply. The previous auction, which closed in February 2025, selected 15 projects across five countries and allocated €992 million.
Industry observers say the latest result shows the EU is still willing to underwrite the cost gap that has slowed hydrogen deployment in Europe, but it also highlights how dependent the market remains on subsidy support if it is to scale beyond pilot projects and early commercial plants.
- https://www.urdupoint.com/en/middle-east/eu-awards-over-1-billion-to-european-hydro-2183374.html – Please view link – unable to able to access data
- https://energy.ec.europa.eu/topics/energy-systems-integration/hydrogen/european-hydrogen-bank_en – The European Hydrogen Bank is a financing instrument launched by the European Commission in 2022 to accelerate the establishment of a full hydrogen value chain in Europe. It aims to unlock private investments in hydrogen value chains by connecting renewable energy supply to EU demand and addressing initial investment challenges. The bank operates under four pillars: domestic support, international collaboration, transparency, and coordination. The domestic pillar focuses on scaling up hydrogen production within the European Economic Area (EEA) and connecting renewable hydrogen supply with demand. Funding is awarded as a fixed premium in €/kg of verified and certified renewable fuel of non-biological origin (RFNBO) hydrogen produced. The bank plans to launch a third auction for renewable hydrogen production at the end of 2025 with a budget of up to €1 billion. The second auction, which closed on 20 February 2025, selected 15 renewable hydrogen production projects across five countries within the EEA to receive €992 million in EU funding. These projects are expected to produce nearly 2.2 million tonnes of renewable hydrogen over 10 years, helping to avoid more than 15 million tonnes of CO₂ emissions and contributing to the creation of a European market for renewable hydrogen.
- https://cinea.ec.europa.eu/news-events/news/six-winners-2024-innovation-fund-hydrogen-auction-sign-grant-agreements-advancing-renewable-hydrogen-2026-01-20_en – In January 2026, six projects selected in the 2024 Innovation Fund Auction for renewable hydrogen production signed their grant agreements, receiving a total of €270.6 million sourced from EU Emissions Trading System revenues. Two of these projects were awarded under the dedicated maritime topic, receiving more than €35 million to supply renewable hydrogen to maritime off-takers. The auction operates under the domestic pillar of the European Hydrogen Bank, aiming to scale up European hydrogen production and strengthen market integration. It supports the replacement of natural gas, coal, and oil in hard-to-decarbonise industries and transport sectors. The awarded funding will help these projects bridge the difference between their production costs and the price that industrial users are willing to pay for their product.
- https://climate.ec.europa.eu/news-other-reads/news/six-winners-2024-innovation-fund-hydrogen-auction-sign-grant-agreements-advancing-renewable-hydrogen-2026-01-20_sv – In January 2026, six projects selected in the 2024 Innovation Fund Auction for renewable hydrogen production signed their grant agreements, receiving a total of €270.6 million sourced from EU Emissions Trading System revenues. Two of these projects were awarded under the dedicated maritime topic, receiving more than €35 million to supply renewable hydrogen to maritime off-takers. The auction operates under the domestic pillar of the European Hydrogen Bank, aiming to scale up European hydrogen production and strengthen market integration. It supports the replacement of natural gas, coal, and oil in hard-to-decarbonise industries and transport sectors. The awarded funding will help these projects bridge the difference between their production costs and the price that industrial users are willing to pay for their product.
- https://www.hydronews.it/en/pubblicati-i-risultati-della-terza-asta-della-european-hydrogen-bank-selezionati-9-progetti-a-cui-andranno-incentivi-per-oltre-1-miliardo-di-euro/?amp=1 – The European Commission has selected nine hydrogen production projects under the third auction of the European Hydrogen Bank (EHB). Across seven countries in the European Economic Area, the projects are expected to provide almost 1.1 gigawatts of electrolyser capacity and produce over 1.3 million tonnes of hydrogen over their first 10 years of operation, with an estimated greenhouse gas emissions avoidance of 9 million tonnes of CO₂ equivalent. The selected projects will receive a total of around €1.09 billion in EU funding from the Innovation Fund, sourced from the EU Emissions Trading System (ETS). The produced hydrogen will help reduce emissions from energy-intensive industries such as transport and chemicals. The projects are expected to strengthen Europe’s industrial leadership, long-term competitiveness, and jobs, and contribute to the EU’s clean transition, energy independence, and security. The auction awards successful projects with a subsidy to help cover the price difference between their production costs and the market price. The objective is to incentivise clean hydrogen production and use. Upon signature of their grant agreements, the nine selected projects will receive a fixed premium of between €0.57 and €3.49 per kilogramme of certified and verified hydrogen produced, for a maximum period of 10 years.
- https://www.gasworld.com/story/third-european-hydrogen-bank-round-selects-nine-projects-for-over-e1bn/2248952.article/ – Nine electrolytic hydrogen projects representing 1.1GW of capacity have been selected for over €1bn of funding under the third European Hydrogen Bank auction. The projects were awarded per kilogramme subsidies of between €0.44 and €3.49, with two Norwegian developments focused on supplying shipping securing the most lucrative incentives. The funding from the EU Emissions Trading Scheme will last for the first 10 years of the projects’ operations, which could see over 1.3 million tonnes of hydrogen produced. It was the first EHB auction to offer subsidies for electrolytic hydrogen projects not complying with the strict renewable fuels of non-biological origin (RFNBO) criteria around renewable electricity sourcing. Two projects in Finland and Germany, representing 620MW of capacity were selected under the Low-Carbon bucket. While five RFNBO projects were selected in total, their capacities make up just 439MW, with subsidies ranging between €0.57 and €0.98 per kilogramme. Unlike previous EHB rounds, which primarily selected projects in Iberia and the Nordics, RFNBO developments in Greece, Spain, Denmark, and Austria were represented. The two projects selected under the auction’s Maritime-Aviation bucket were two Norwegian projects looking to supply shipping operations, both with subsidies close to €3.50.
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The draft above was created using the information available at the time the story first
emerged. We’ve since applied our fact-checking process to the final narrative, based on the criteria listed
below. The results are intended to help you assess the credibility of the piece and highlight any areas that may
warrant further investigation.
Freshness check
Score:
10
Notes:
The article reports on the European Commission’s recent announcement on 7 May 2026 regarding the allocation of over €1 billion to nine hydrogen production projects under the third auction of the European Hydrogen Bank. This is the earliest known publication date for this specific information, indicating high freshness. The content does not appear to be recycled or republished from other sources, and there are no discrepancies in figures, dates, or quotes.
Quotes check
Score:
10
Notes:
The article does not include any direct quotes. All information is presented in paraphrased form, which is appropriate for a news report. There are no concerns regarding the reuse of quotes or inconsistencies in wording.
Source reliability
Score:
3
Notes:
The article originates from UrduPoint, a news outlet based in Pakistan. While it provides coverage of international events, its primary audience is not European. The source is not a major news organisation and may not have the same level of editorial oversight as more established outlets. This raises concerns about the reliability and accuracy of the information presented.
Plausibility check
Score:
8
Notes:
The claims made in the article align with known EU initiatives to support hydrogen production and the European Hydrogen Bank’s objectives. However, the lack of direct quotes or references to official EU communications makes it difficult to independently verify the specific details provided. The absence of supporting information from other reputable outlets further raises questions about the plausibility of the claims.
Overall assessment
Verdict (FAIL, OPEN, PASS): FAIL
Confidence (LOW, MEDIUM, HIGH): MEDIUM
Summary:
The article presents information about the European Commission’s allocation of over €1 billion to hydrogen production projects. However, it originates from a less reputable source, lacks direct quotes or references to official EU communications, and does not cite independent verification sources. These factors raise concerns about the accuracy and reliability of the information presented. Editors should exercise caution and seek additional verification from more authoritative sources before publishing.
