The European Commission has approved, under EU State aid rules, a €400 million Austrian State aid scheme, and a €36 million Lithuanian State aid scheme, to support renewable hydrogen production through the European Hydrogen Banks “Auctions-as-a-Service” tool for the auction closing in 2025. These schemes will aid the Clean Industrial Deal goals to decarbonize EU industries and bolster competitiveness, align with the REPowerEU Plan to lessen reliance on Russian fossil fuels, and support the EU Hydrogen Strategy.
Scheme Details
Austria and Lithuania plan to utilize the “Auctions-as-a-Service” tool within the European Hydrogen Bank to support renewable hydrogen production. These approved schemes aim to produce up to 112,000 tonnes of renewable hydrogen in Austria and 13,000 tonnes in Lithuania, contributing to significant CO2 emissions reduction. This initiative aids in meeting national and EU targets for renewable fuels of non-biological origin, as specified in the Renewable Energy Directive.
The aid will be awarded through a competitive bidding process managed by the European Climate, Infrastructure, and Environment Executive Agency (CINEA). The support is available to companies planning new electrolysers in Austria and Lithuania.
The aid, granted per kilogram of renewable hydrogen produced, will last up to ten years. Beneficiaries must comply with EU criteria for RFNBOs, including contributing to the necessary renewable electricity deployment.
Commissions Assessment
The schemes were evaluated under EU State aid rules, particularly Article 107(3)(c) of the Treaty on the Functioning of the European Union and the 2022 Guidelines on State aid. The Commission concluded:
- The schemes are necessary and appropriate for renewable hydrogen production and decarbonization.
- An incentive effect is present, as beneficiaries would not invest without public support.
- Adequate safeguards ensure a limited impact on competition within the EU.
- The environmental benefits outweigh potential competition distortions.
Thus, the Commission approved the schemes.
Background
On 18 November 2024, Austria and Lithuania announced participation in the “Auctions-as-a-Service” scheme for the second 2024/2025 auction. The European Hydrogen Bank facilitates EU production and imports of renewable hydrogen, aiming for 20 million tonnes by 2030. Managed by the Innovation Fund, these auctions harmonize national and EU support schemes.