European green hydrogen is running up against reality: Of the €1.2 billion available under the second call for proposals, only about €300 million has been committed to projects that have actually moved forward.
The rollout of Europe’s hydrogen industry is lagging behind expectations: of the €1.2 billion ($1.39 billion) available in the European Hydrogen Bank’s (EHB) second auction, only around €300 million has been committed to actual projects.
This has led national hydrogen associations from more than a dozen countries including Spain, France, Italy, Ireland, Finland, Norway, the Czech Republic, Bulgaria, Romania, Hungary and Slovakia to call on the European Commission to reform how funding is allocated and implemented.
Paradoxically, the issue is not a lack of interest. Early EHB auctions saw strong participation, with the third round attracting bids worth roughly six times the available budget. However, according to the signatories, many applicants submitted ultra-low subsidy requests to improve their chances of success – levels that often proved economically unviable once awards were secured.
As a result, several winners later withdrew during the contract or financial close phase. In Spain alone, four awarded projects dropped out, while three proceeded to sign grant agreements.
