Successful funding model continues – Austria takes next step in the hydrogen ramp-up

Austria will participate in the European Hydrogen Bank with national funds. The EUMinistry of Economic Affairs and Energy is providing up to 200 million euros for the next EU-wide hydrogen auction, which is scheduled to launch in December 2026. Austria is thus continuing the "Auction-as-a-Service" model, which was already successfully used in 2024. Through the Hydrogen Promotion Act (WFöG), domestic projects can be funded with national funds within the framework of the EU-wide auction.

“Hydrogen is a central building block for the future of our industry and thus for value creation and jobs in Austria. That is why we are consistently continuing the path we have taken and are providing funds for domestic hydrogen production for the second time within the framework of the European Hydrogen Bank. We combine European tenders with Austrian location policy: projects that contribute to the development of the hydrogen economy are funded. By participating in the European Hydrogen Bank, we are creating the right framework conditions for hydrogen pioneers and launching concrete investments in Austria,” said Wolfgang Hattmannsdorfer, Minister of Economic Affairs and Energy.

Successful model to continue

Austria has already used the instrument at the EU Hydrogen Auction 2024. At that time, up to 400 million euros in national funds were available. Four Austrian hydrogen production projects with an electrolysis capacity of a total of 171 megawatts received funding commitments of around 275 million euros. The funding contracts for all four projects have now been concluded.

The amendment to the Hydrogen Promotion Act laid the foundation for grants in the context of European auctions until 2027. Austria is thus using the European Commission's "Auction-as-a-Service" model. Member States can use the EU-wide auction to support additional projects from their country with national funds.

“The first participation has shown that there are concrete and efficient projects in Austria. Now we are launching the next wave of investment, which is also an important part of the industrial strategy. It is crucial that hydrogen strategies also become hydrogen projects. This is exactly where this funding instrument comes in,” says Hattmannsdorfer.

In preparation for Austrian participation, the Ministry of Economic Affairs and Energy has from mid-July to 25. August 2026 a six-week public expression of interest. The aim was to raise the need and the existing project potential for participation with national funds.

The funding will be awarded through the joint European auction. Project applicants offer a required subsidy premium per kilogram of hydrogen. The most competitive projects will be awarded. The subsidy is paid out on the basis of the actually produced and certified hydrogen quantities over a maximum period of ten years.

500 million euros at European level

The European Commission is planning to open the fourth EUEU-wide auction within the framework of the European Hydrogen Bank in December 2026. A total of 500 million euros are available at the European level. Of these, 350 million euros are earmarked for the production of renewable RFNBO hydrogen. A further 150 million euros will be available for the production of RFNBO hydrogen and/or low-carbon electrolytic hydrogen.

At the same time, the Ministry of Economic Affairs and Energy is preparing the necessary national funding guidelines on the basis of the final requirements of the European Commission. To this end, the state aid procedure with the European Commission will be initiated, as well as the agreement with the Ministry of Finance provided for in the Hydrogen Promotion Act. The national funding guidelines will be published on the BMWET website in good time before the auction opens in December.

In addition to expanding domestic production, Austria relies on international partnerships. A central role is played by the planned hydrogen southern corridor, which is intended to connect North Africa with the industrial centers of Central Europe via Italy and Austria. For this purpose, targeted cooperation is being promoted beyond the European borders. An important partner is Algeria, which can play a significant role in the future hydrogen supply of Europe due to its great potential for renewable energy and its existing energy infrastructure. Minister of Economic Affairs and Energy Wolfgang Hattmannsdorfer is therefore planning a visit to Algeria in the autumn in order to deepen cooperation and to explore concrete cooperation opportunities along the entire value chain – from production to transport to industrial use.

Hydrogen plays a central role in the decarbonisation of domestic industry. Currently, predominantly so-called gray hydrogen is used, which is produced from fossil fuels such as natural gas and whose production generates significant CO2 emissions. In the future, it will be gradually replaced by green hydrogen, which will be generated with the help of electricity from renewable energy sources. This opens up new perspectives, especially for energy-intensive industries where direct electrification is difficult to achieve.

Source:   FCW Team