Feb 3, 2025
The EU supports hydrogen infrastructure initiatives with more than €250 million.
To assist in decarbonizing the European Union (EU) industry, the European Commission will provide over €250 million in grants from the Connecting Europe Facility (CEF) for 21 studies focused on developing hydrogen infrastructure.
The funding aims to reduce investment risks related to this emerging market and will complement the hydrogen policy framework established in the Gas and Hydrogen Package.
The grants are designated for projects in Austria, Belgium, Czech Republic, Denmark, Estonia, Finland, France, Germany, Greece, Italy, Lithuania, Latvia, Poland, Portugal, Spain, and Sweden. Noteworthy projects include the BarMar-H2med initiative between Spain and France, key backbone projects in Italy, Portugal, and Spain, as well as hydrogen corridors and routes in the Baltic region.
It is important to mention that gas transmission system operators (TSOs) from Finland, Estonia, Latvia, Lithuania, Poland, and Germany announced the initiation of feasibility studies for the Nordic-Baltic Hydrogen Corridor (NBHC) in December 2024.
Prior to starting the feasibility studies, the TSOs will conduct a joint study on commercial principles, which will explore initial guidelines for cross-border cost allocation. The aim is to create mutually agreeable principles for commercial and revenue models (tariff models) to ensure financial sustainability for all participating TSOs.
Sara Kärki, Senior Vice President of Hydrogen Development at Gasgrid, Finland’s TSO, commented on the EU funding: "This decision indicates that Finland and the Baltic Sea Region are strategically important and highly competitive for the development of the hydrogen economy and supporting EU climate objectives."
Additionally, in December, companies from France, Germany, Portugal, and Spain formed an alliance for the H2Med Southwestern Hydrogen Corridor to enhance the European hydrogen single market by linking hydrogen production, storage, and consumption projects. The alliance reportedly aims to expedite the implementation of the H2Med Corridor by the early 2030s.
The EU’s funding for hydrogen development studies is part of a €1.2 billion program aimed at promoting 41 cross-border energy infrastructure projects that have been designated as Projects of Common Interest (PCIs) and Projects of Mutual Interest (PMIs) under the Trans-European Networks for Energy (TEN-E) policy framework in 2024.
According to the Commission, this represents the largest call for proposals under the current CEF Energy program, both in terms of applications received and funds distributed, exceeding the original indicative budget of €850 million. Furthermore, this is the first call under the revised TEN-E regulation that includes hydrogen and offshore electricity grid endeavors.
The Draghi report emphasized that such cross-border energy infrastructure investments are vital for maintaining Europe’s competitiveness. They are expected to support the EU’s objectives of integrating energy markets and decarbonizing the energy system.
In addition to hydrogen development studies, eight electricity grid projects, including offshore and smart electricity grids, will also receive support from the program, with nearly €750 million allocated for them. Moreover, funding of €250 million will aid in constructing three projects and financing nine preparatory studies for CO2 infrastructure.
Dan Jørgensen, Commissioner for Energy and Housing, stated: "The Commission has proposed to allocate €1.25 billion in grants, the highest amount ever given under the Connecting Europe Facility for energy infrastructure projects, significantly contributing to the establishment of our Energy Union. This is also the first time that hydrogen and offshore electricity grid projects have been selected. Once finalized, these successful projects will enhance our efforts to decarbonize our economies and societies, integrate our energy markets, and maintain our industry’s competitiveness."
It is noted that the formal adoption of this grant decision is expected to occur in the coming weeks, after which the European Climate, Infrastructure and Environment Executive Agency (CINEA) will prepare grant agreements with the beneficiaries.
The next CEF Energy call for proposals for energy infrastructure is scheduled for 2025.
The funding aims to reduce investment risks related to this emerging market and will complement the hydrogen policy framework established in the Gas and Hydrogen Package.
The grants are designated for projects in Austria, Belgium, Czech Republic, Denmark, Estonia, Finland, France, Germany, Greece, Italy, Lithuania, Latvia, Poland, Portugal, Spain, and Sweden. Noteworthy projects include the BarMar-H2med initiative between Spain and France, key backbone projects in Italy, Portugal, and Spain, as well as hydrogen corridors and routes in the Baltic region.
It is important to mention that gas transmission system operators (TSOs) from Finland, Estonia, Latvia, Lithuania, Poland, and Germany announced the initiation of feasibility studies for the Nordic-Baltic Hydrogen Corridor (NBHC) in December 2024.
Prior to starting the feasibility studies, the TSOs will conduct a joint study on commercial principles, which will explore initial guidelines for cross-border cost allocation. The aim is to create mutually agreeable principles for commercial and revenue models (tariff models) to ensure financial sustainability for all participating TSOs.
Sara Kärki, Senior Vice President of Hydrogen Development at Gasgrid, Finland’s TSO, commented on the EU funding: "This decision indicates that Finland and the Baltic Sea Region are strategically important and highly competitive for the development of the hydrogen economy and supporting EU climate objectives."
Additionally, in December, companies from France, Germany, Portugal, and Spain formed an alliance for the H2Med Southwestern Hydrogen Corridor to enhance the European hydrogen single market by linking hydrogen production, storage, and consumption projects. The alliance reportedly aims to expedite the implementation of the H2Med Corridor by the early 2030s.
The EU’s funding for hydrogen development studies is part of a €1.2 billion program aimed at promoting 41 cross-border energy infrastructure projects that have been designated as Projects of Common Interest (PCIs) and Projects of Mutual Interest (PMIs) under the Trans-European Networks for Energy (TEN-E) policy framework in 2024.
According to the Commission, this represents the largest call for proposals under the current CEF Energy program, both in terms of applications received and funds distributed, exceeding the original indicative budget of €850 million. Furthermore, this is the first call under the revised TEN-E regulation that includes hydrogen and offshore electricity grid endeavors.
The Draghi report emphasized that such cross-border energy infrastructure investments are vital for maintaining Europe’s competitiveness. They are expected to support the EU’s objectives of integrating energy markets and decarbonizing the energy system.
In addition to hydrogen development studies, eight electricity grid projects, including offshore and smart electricity grids, will also receive support from the program, with nearly €750 million allocated for them. Moreover, funding of €250 million will aid in constructing three projects and financing nine preparatory studies for CO2 infrastructure.
Dan Jørgensen, Commissioner for Energy and Housing, stated: "The Commission has proposed to allocate €1.25 billion in grants, the highest amount ever given under the Connecting Europe Facility for energy infrastructure projects, significantly contributing to the establishment of our Energy Union. This is also the first time that hydrogen and offshore electricity grid projects have been selected. Once finalized, these successful projects will enhance our efforts to decarbonize our economies and societies, integrate our energy markets, and maintain our industry’s competitiveness."
It is noted that the formal adoption of this grant decision is expected to occur in the coming weeks, after which the European Climate, Infrastructure and Environment Executive Agency (CINEA) will prepare grant agreements with the beneficiaries.
The next CEF Energy call for proposals for energy infrastructure is scheduled for 2025.