The European Union has taken a significant step toward strengthening the hydrogen economy by allocating €992 million in public funding to 15 renewable hydrogen production projects. The initiative spans the European Economic Area (EEA) and is designed to accelerate the continent’s energy transition through clean hydrogen deployment.
Selected under the EU Innovation Fund—financed by revenues from the EU Emissions Trading System (ETS)—the projects are expected to deliver nearly 2.2 million tonnes of renewable hydrogen over the next decade. This move aligns with the EU’s strategic objective to reduce greenhouse gas emissions and enhance energy security through domestically produced clean energy carriers.
The approved projects are located in five member states:
The Netherlands hosts the largest project in terms of production capacity, followed closely by one in Germany. Notably, Spain stands out for its cost efficiency, with seven of the eight lowest-priced proposals originating there—highlighting its growing competitiveness in renewable hydrogen production.
In parallel with project funding, the European Commission has released its official feedback on the statutory documents of the European Network of Network Operators for Hydrogen (ENNOH)—the future regulatory body for hydrogen transport infrastructure within the EU. Stakeholders are expected to finalize and publish these governance documents by July 2025, incorporating guidance from both the Commission and the Agency for the Cooperation of Energy Regulators (ACER).
This regulatory development underscores the EU’s commitment to a harmonized and technically robust hydrogen infrastructure, which will be vital for scaling up cross-border hydrogen supply and demand.
Japan is also reinforcing its national hydrogen strategy by introducing subsidies aimed at decarbonizing heavy-duty transport. A government-approved measure sets a subsidy of JPY 700/kg (approximately €4.40/kg) for hydrogen used in fuel cell trucks and buses across six prefectures.
Announced at the World Hydrogen Summit in Rotterdam, the initiative is part of Japan’s Contracts for Difference (CfD) program for clean hydrogen, which has already received more interest than initially anticipated. Project selection is scheduled to begin in the second half of the current fiscal year.
In addition to domestic developments, Japanese and German officials held bilateral discussions in Rotterdam to explore joint strategies for market development and hydrogen financing mechanisms.
US-based clean fuels company Infinium has selected Electric Hydrogen’s 100 MW HYPRPlant system for its large-scale eFuels facility in Texas. The integrated solution is designed to reduce capital costs by up to 60% compared to conventional electrolyzers, according to the manufacturer. Electric Hydrogen cites its modular design and domestic production footprint—spanning Massachusetts and Texas—as key advantages over imported systems.
In Europe, KK Wind Solutions will supply ten customized power supply units for Sunfire’s 100 MW pressurized alkaline electrolyzer. The units include essential infrastructure such as transformers, rectifiers, AC connections, and cooling systems.
Building on a previous collaboration—where KK Wind Solutions delivered two 5 MW units for Sunfire’s 10 MW pilot in 2023—the new equipment supports Sunfire’s scale-up to commercial-level green hydrogen production. The partners highlight that lessons learned from the pilot project were instrumental in optimizing the new 10 MW units for high-efficiency, industrial-scale deployment.
The recent wave of public and private investments across Europe, Asia, and North America reflects a growing international consensus on hydrogen’s role in decarbonizing industry and transport. Coordinated initiatives like those from the EU and Japan, alongside commercial technology deployments in the US, signal accelerating momentum for a global hydrogen economy.
As stakeholders continue to align funding, regulation, and technology, hydrogen is poised to become a cornerstone of the net-zero transition.