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Commission approves a €400 million Austrian state aid scheme, and a €36 million Lithuanian state aid scheme, to support renewable hydrogen production

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The European Commission has approved, under EU state aid rules, a €400 million Austrian State aid scheme, and a €36m Lithuanian State aid scheme, to support the production of renewable hydrogen through the European Hydrogen Bank's “Auctions-as-a-Service” tool for the auction closing in 2025.

The schemes will contribute to the objectives of the Clean Industrial Deal to accelerate the decarbonization of EU industry while strengthening its competitiveness, of the REPowerEU Plan to reduce dependence on Russian fossil fuels and accelerate the green transition, as well as the EU Hydrogen Strategy.

Under the schemes, the aid will take the form of a direct grant per kilogram of renewable hydrogen produced. The aid will be granted for a maximum duration of ten years. Beneficiaries will have to prove compliance with EU criteria for the production of renewable fuels of non-biological origin (RFNBOs). This includes contributing to the deployment or financing of the additional renewable electricity which is needed to produce the hydrogen supported under the scheme.

Executive Vice President Teresa Ribera (pictured), in charge of competition policy, said: “These schemes mark an important step in boosting renewable hydrogen development, and reducing the cost of this strategic clean fuel. They will support the most competitive projects in Austria and Lithuania, reducing the burden on taxpayers and minimising possible market distortions. Austria and Lithuania are among a growing number of Member States choosing to make use of this EU auction, which offers an accelerated solution for awarding public support in this strategic sector.”

press release is available online.

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