Hydrogen Hub

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EU backs hydrogen infrastructure projects with over €250 million
Authorities & Government
January 31, 2025, by Aida Cucuk
To help decarbonize the industry of the European Union (EU), the European Commission will allocate over €250 million in grants from the Connecting Europe Facility (CEF) to 21 hydrogen infrastructure development studies.



As disclosed, the funding will help alleviate investment risks associated with this nascent market and complement the hydrogen policy framework introduced in the Gas and Hydrogen Package.

The grants are intended for projects in Austria, Belgium, Czechia, Denmark, Estonia, Finland, France, Germany, Greece, Italy, Lithuania, Latvia, Poland, Portugal, Spain and Sweden: notably the BarMar-H2med project between Spain and France, the backbone projects in Italy, Portugal and Spain, as well as the hydrogen corridors and routes in the Baltic region.

To note, gas transmission system operators (TSOs) of Finland, Estonia, Latvia, Lithuania, Poland and Germany announced the start of the feasibility studies on the Nordic-Baltic Hydrogen Corridor (NBHC) in December 2024.

Before the feasibility studies are set to commence, the TSOs will conduct a joint commercial principles study that will investigate the preliminary principles for a cross-border cost allocation. Reportedly, its goal is also to develop mutually suitable principles of commercial and revenue models (tariff models) to ensure financial viability for all involved TSOs.???

Commenting on the EU funding, Sara Kärki, Senior Vice President of hydrogen Development at Finland’s TSO Gasgrid, said: “The decision shows that Finland and the Baltic Sea Region is a strategically important and very competitive region for the development of the hydrogen economy and support EU-climate targets.”

It is also worth mentioning that, in December, companies from France, Germany, Portugal and Spain created an alliance for the H2Med Southwestern Hydrogen Corridor to advance the European hydrogen single market by connecting hydrogen production, storage and consumption projects. As informed, the alliance aims to accelerate the implementation of the H2Med Corridor by the early 2030s.

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Nordic-Baltic Hydrogen Corridor project moves forward
New H2Med Corridor alliance to advance European hydrogen single market
The EU’s support for the hydrogen development studies is part of a €1.2 billion program to boost 41 cross-border energy infrastructure projects, which have obtained the status of Projects of Common Interest (PCIs) and Projects of Mutual Interest (PMIs) in 2024 under the Trans-European Networks for Energy (TEN-E) policy framework.

According to the Commission, this is the largest call for proposals under the current CEF Energy program, both in terms of applications received and funding awarded and goes beyond the call’s initial indicative budget of €850 million. It is also said to be the first call under the revised TEN-E regulation which includes hydrogen and offshore electricity grid projects.

As underlined by the Draghi report, such cross-border energy infrastructure investments are key to securing Europe’s competitiveness. They are expected to contribute to the EU’s goals of integrating energy markets and decarbonizing the energy system.

Apart from hydrogen development studies, eight electricity grid projects, including offshore and smart electricity grids, will benefit from the program. Nearly €750 million of the funding is earmarked for them. Additionally, funding worth €250 million will support the construction of three projects and the financing of nine preparatory studies for CO2 infrastructure.