EU and Australia Allocate Funds for Hydrogen Projects as Support Shifts

The European Commission has approved more than €1 billion for nine hydrogen production projects across seven European Economic Area countries under the third auction of the European Hydrogen Bank. The projects will deliver around 1.1 GW of electrolyser capacity and generate over 1.3 million tonnes of hydrogen in their first decade, avoiding about 9 million tonnes of CO₂‑equivalent emissions. Subsidies range from €0.44 to €3.49 per kilogram of certified hydrogen, and the auction was oversubscribed with 58 bids from 11 countries. In addition, Germany and Spain are adding up to €1.7 billion through an “Auctions‑as‑a‑Service” mechanism to support further domestic projects.

In Australia, the Renewable Energy Agency has shortlisted seven hydrogen‑derivative projects totaling 2.18 GW of electrolysis capacity for the second round of its Hydrogen Headstart program, but funding was halved from AUD 2 billion to AUD 1 billion as part of wider fiscal savings. The projects focus on green methanol, ammonia, fertilizers and aviation fuels, targeting industrial demand rather than speculative export markets. Notable developments include Bell Bay Powerfuels (300 MW, 300,000 t methanol/year), South East Queensland Power‑to‑X (150 MW with plans to scale), HIF Tasmania e‑Fuel (140 MW, 210,000 t methanol/year) and Hamr Energy’s Portland Renewable Fuels (220 MW hybrid biomass‑electrolysis). The shift reflects pressure to back commercially defensible low‑carbon industrial solutions amid high capital costs and uncertain market signals.