European Commission Approves State Aid Schemes for Renewable Hydrogen Production in Austria and Lithuania
Key Ideas
  • The European Commission has approved €400 million for Austria and €36 million for Lithuania to support renewable hydrogen production through the European Hydrogen Bank's "Auctions-as-a-Service" tool.
  • The state aid schemes aim to accelerate the decarbonization of EU industry, reduce dependence on Russian fossil fuels, and align with the EU Hydrogen Strategy.
  • The aid will be granted as a direct grant per kilogram of renewable hydrogen produced, with beneficiaries required to comply with EU criteria for renewable fuel production.
  • Executive Vice President Teresa Ribera highlighted the importance of these schemes in boosting renewable hydrogen development, reducing costs, and supporting competitive projects in the two countries.
The European Commission has given the green light to state aid schemes in Austria and Lithuania to promote the production of renewable hydrogen. Austria will receive €400 million, while Lithuania will benefit from €36 million under the European Hydrogen Bank's "Auctions-as-a-Service" tool. These initiatives aim to further the goals of the Clean Industrial Deal, the REPowerEU Plan, and the EU Hydrogen Strategy by fostering the decarbonization of EU industry, decreasing reliance on Russian fossil fuels, and advancing the green transition. The aid will be provided in the form of a direct grant per kilogram of renewable hydrogen produced, with a maximum duration of ten years. Beneficiaries must adhere to EU criteria for producing renewable fuels of non-biological origin, which includes supporting the additional renewable electricity required for hydrogen production. Teresa Ribera, the Executive Vice President in charge of competition policy, emphasized the significance of these schemes in driving renewable hydrogen development, cutting costs, and backing competitive projects in Austria and Lithuania. By utilizing the EU auction mechanism, these Member States intend to streamline the allocation of public support in the strategic renewable hydrogen sector.
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