European Commission Approves State Aid Schemes for Renewable Hydrogen Production
Key Ideas
- The European Commission approved a €400 million Austrian State aid scheme and a €36 million Lithuanian State aid scheme to support renewable hydrogen production.
- The schemes align with the Clean Industrial Deal, REPowerEU Plan, and EU Hydrogen Strategy to decarbonize EU industry, reduce dependence on Russian fossil fuels, and accelerate the green transition.
- Auctions-as-a-Service tool by the European Hydrogen Bank will be used for the auction closing in 2025, with aid in the form of direct grants per kilogram of renewable hydrogen produced.
The European Commission has recently given the green light to State aid schemes proposed by Austria and Lithuania, aimed at bolstering the production of renewable hydrogen. The Austrian scheme, amounting to €400 million, and the Lithuanian scheme, totaling €36 million, will support the European Hydrogen Bank's initiative known as "Auctions-as-a-Service." These schemes play a vital role in advancing the Clean Industrial Deal to facilitate the decarbonization of EU industry and enhance its competitiveness. Additionally, the initiatives align with the goals of the REPowerEU Plan, which seeks to diminish reliance on Russian fossil fuels and expedite the transition to green energy. The aid under these schemes will be provided in the form of direct grants based on the quantity of renewable hydrogen generated. This approval signifies a significant step towards achieving the targets set by the EU Hydrogen Strategy to promote the adoption of sustainable hydrogen as an integral part of Europe's energy landscape.
Topics
Production
Renewable Energy
Clean Energy
European Commission
Competitiveness
State Aid
Industrial Decarbonisation
EU Hydrogen Strategy
REPowerEU Plan
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