In 2022, the Commission launched the European Hydrogen Bank to create investment security and business opportunities for European and global renewable hydrogen production. It is not designed to be a physical institution, but is a financing instrument, run internally by European Commission services.
Objective
The main objective of the facility is to unlock private investments in hydrogen value chains, both within the EU and globally, by connecting renewable energy supply to EU demand and addressing the initial investment challenges.
The European Hydrogen Bank will establish an initial market for renewable hydrogen, offering new growth opportunities and jobs.
4 pillars of action
The Communication on the European Hydrogen Bank (COM/2023/156), published on 16 March 2023, describes the concept, tasks and structure of the financing instrument in detail. It is based on 4 pillars of action at EU level.
1. Domestic pillar
The domestic pillar’s goal is to support the scale-up of the hydrogen production market within the European Economic Area (EEA) and connect the renewable hydrogen supply with demand. Funding is awarded as a fixed premium in €/kg of verified and certified renewable fuel of non-biological origin (RFNBO) hydrogen produced.
European Hydrogen Bank auctions
A third European Hydrogen Bank auction took place between 4 December 2025 and 19 February 2026. It awarded over €1 billion to 9 hydrogen production projects across 7 European Economic Area (EEA) countries. These projects are expected to provide almost 1.1 giga-watts of electrolyser capacity and produce over 1.3 million tonnes of hydrogen over their first 10 years of operation, with an estimated greenhouse gas emissions avoidance of 9 million tonnes of CO2 equivalent. Grant agreements with the European Climate, Infrastructure, and Environment Executive Agency (CINEA) are expected to be signed in the last quarter of 2026.
The third call attracted 58 bids from 11 countries, resulting in an oversubscription of over 6 times the budget of €1.3 billion.
In addition, Spain and Germany are participating through the Auctions-as-a-Service feature, adding a further €1.7 billion in national funds.
Second hydrogen bank auction (December 2024 - February 2025)
The second domestic auction for the production of renewable hydrogen via the Innovation Fund closed on 20 February 2025. After evaluating the 61 submitted bids, the Commission invited 15 renewable hydrogen production projects to sign grant agreements with the European Climate, Infrastructure, and Environment Executive Agency (CINEA).
Following the Grant Agreement Preparation (GAP) process, on 20 January 2026, 6 projects located in Spain Finland and Norway signed grant agreements, receiving a total of €270.6 million in support. The projects will install a total of 381.25 megawatts of electrolyser capacity. Together, they are expected to produce around 500 kilotonnes of renewable hydrogen over 10 years, cutting almost 3.4 million tonnes of CO₂ emissions.
On 18 November 2024, Spain, Lithuania and Austria announced over €700 million in national funds, through their participation in the ‘auction-as-a-service’ scheme as part of the second European Hydrogen Bank auction, to support renewable hydrogen production projects located in their countries. In April 2025, the Commission approved a €400 million Spanish State aid scheme to fund their support for renewable hydrogen production under the 'auctions-as-a-service' scheme.
First hydrogen bank auction (November 2023 – February 2024)
The first hydrogen bank auction was launched in November 2023 and closed in February 2024, awarding nearly €720 million to 7 renewable hydrogen projects across Europe, from a total of 132 bids submitted to the auction. 6 of 7 projects signed their respective grant agreements in October 2024.
The projects must start producing renewable hydrogen within 5 years. Together, they have the potential to produce 1.52 million tonnes of renewable hydrogen in their first 10 years of operation,avoiding more than 10 milliontonnes of CO2 emissions.
2. International pillar
The Commission is developing the design of the international part of the European Hydrogen Bank that would attract imports of renewable hydrogen into the EU market.
Following the joint announcement of Commissioner for Energy Kadri Simson and German Federal Minister for Economic Affairs and Climate Action Robert Habeck on 31 May 2023, the Commission is developing the concept of joint European auctions. The aim is to bring together EU countries’ financial resources to make a visible contribution to international hydrogen imports.
The design and implementation of a scheme to import renewable hydrogen and its derivatives from non-EU countries into the EU requires thorough analysis and preparation in the near term. To this end, the Commission contracted a study to provide an overview of hydrogen market developments, draw lessons from existing schemes, and define suitable auction models for renewable-based hydrogen (RFNBO) import auctions at the EU level. The results of the study were published in August 2025 and will serve as an essential input for further preparatory work. A second study is ongoing to assist the Commission in the analysis and the implementation of auctions for imports of renewables hydrogen and its derivatives under the European Hydrogen Bank.
3. Transparency and coordination
The European Hydrogen Bank will ensure transparency and coordination of information supporting market and infrastructure development.
The Commission launched a Hydrogen mechanism in July 2025. It supports the market development of renewable and low-carbon hydrogen and its derivatives (ammonia, methanol, e-natural gas/e-methane and electro-sustainable aviation fuel ‘eSAF’) by collecting, processing, and making available information on demand and supply for renewable and low-carbon hydrogen submitted by market players. This further increases transparency on the market and enable European buyers to match with both European and international suppliers.
More about the Hydrogen Mechanism
4. Coordination of support instruments
It will improve coordination of the existing EU and EU countries’ support instruments, including technical assistance and investment support inside and outside the EU.
The Commission's Funding and Tenders Portal, the STEP portal and the Innovation Fund website provide a good overview of hydrogen funding possibilities.
Promoting renewable hydrogen import
Clean hydrogen partnerships will facilitate the promotion of the import of renewable hydrogen from non-EU countries and contribute to incentivising decarbonisation.
Together, the European Hydrogen Bank and the clean hydrogen partnerships aim at delivering a framework to ensure that partnerships established by the EU countries and the industry provide a level-playing field between EU production and non-EU country imports.
Press material
- Nearly €1 billion awarded to boost development of renewable hydrogen (20/05/2025)
- Commission approves a €400 million Spanish State aid scheme to support renewable hydrogen production (15/04/2025)
- Over-subscribed European Hydrogen Bank auction receives 61 bids for Innovation Fund support, including 8 maritime projects (10/03/2025)
- Commission earmarks €4.6 billion to boost net-zero technologies, electric vehicle battery cell manufacturing and renewable hydrogen under the Innovation Fund (03/12/2024)
- Joint press release by the Commission, Spain, Lithuania and Austria on the European Hydrogen Bank's ‘Auctions-as-a-Service' scheme, increasing the funding for clean investments (18/11/2024)
- Commission kick-starts work on a new pilot mechanism to boost the hydrogen market (03/06/2024)
- European Hydrogen Bank auction provides €720 million for renewable hydrogen production in Europe (30/04/2024)
- Commission approves €350 million German State aid scheme to support renewable hydrogen production (05/04/2024)
- Germany's participation in the European Hydrogen Bank (20/12/2023)
- Joint statement by Commissioner Simson and German Minister Habeck on energy issues (31/05/2023)
- Commission outlines European Hydrogen Bank to boost renewable hydrogen (16/03/2023)
- Factsheet: ‘Boosting hydrogen through a European Hydrogen Bank’ (16/03/2023)