EU Approves €436 Million State Aid for Hydrogen Production in Austria, Lithuania

The European Commission has approved two significant State aid schemes totaling €436 million to enhance renewable hydrogen production in Austria and Lithuania, supporting the EU's Clean Industrial Deal and REPowerEU Plan. The €400 million Austrian scheme aims for the production of up to 112,000 tonnes of renewable hydrogen, while the €36 million Lithuanian scheme targets 13,000 tonnes, collectively preventing over 597,000 tonnes of CO2 emissions. These initiatives will utilize the European Hydrogen Bank’s 'Auctions-as-a-Service' tool, with funding distributed via competitive bidding set to conclude in early 2025. The aid will be provided as direct grants for a maximum of ten years to companies constructing new electrolysers. This move is seen as a critical step in reducing Europe's reliance on Russian fossil fuels and advancing the EU's hydrogen strategy. The schemes are expected to bolster industrial decarbonization and competitiveness within the green energy sector.