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The European Commission has unveiled its Green Deal Industrial plan, with intentions to offer green hydrogen producers a subsidy programme.
Launched on Wednesday (February 1), the plan is expected to launch the first series of competitive bids this autumn, amounting to €800m and will offer a “fixed premium” per kg of green hydrogen, subsidising domestic EU production over a 10 year period, from the EU’s €36bn Innovation Fund.
The Commission said, “This will have a similar impact as the production tax credit in the US IRA (Inflation Reduction Act),” however added by offering the support via auction, it will make EU support “cost-effective, fast and administratively light.”