The European Commission has selected nine hydrogen production projects across seven countries under the third auction of the European Hydrogen Bank, allocating approximately €1.09 billion in funding through the Innovation Fund. The selected projects are located across the European Economic Area and are expected to deliver nearly 1.1 gigawatts of electrolyser capacity, producing more than 1.3 million tonnes of renewable hydrogen over their first decade of operation. The programme will also avoid approximately 9 million tonnes of CO2-equivalent emissions over the same period.
Selected projects will receive fixed subsidies ranging from €0.44 per kilogram to €3.49 per kilogram of certified hydrogen produced, over a maximum support period of ten years. The lowest winning bid — €0.44 per kilogram from a Greek project — represents a significant milestone, approaching levels at which green hydrogen begins to compete with fossil-based alternatives in some industrial applications. Denmark and Spain host the largest number of selected projects, with Danish projects dominating in terms of production volume.
The third auction results reinforce the European Hydrogen Bank as the primary mechanism through which the EU is stimulating green hydrogen supply in the early market phase. Grant agreements are expected to be signed with selected developers in the fourth quarter of 2026, with projects required to achieve financial close within two and a half years and commence operations within five years. The programme has attracted strong competition — applications in this round exceeded the available budget by more than six times, indicating robust developer interest.
The falling cost of electrolysis demonstrated by auction results like these — particularly the €0.44/kg bid — benefits the entire green hydrogen ecosystem. As competitive pressure drives down subsidy requirements in large-scale projects, the same electrolyser technology becomes progressively more cost-effective at smaller scales, supporting distributed off-grid hydrogen installations for properties and communities seeking energy independence.
