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EC approves up to €5.2 billion funding for second hydrogen IPCEI

The European Commission (EC) has approved IPCEI Hy2Use, the second Important Project of Common European Interest (IPCEI) in the hydrogen value chain. The project will receive up to €5.2 billion in public funding from thirteen member states.

The project involves 29 companies and 35 projects from thirteen member states: Austria, Belgium, Denmark, Finland, France, Greece, Italy, the Netherlands, Poland, Portugal, Slovakia, Spain and Sweden.

IPCEI Hy2Use follows and complements the first project in the hydrogen value chain, IPCEI Hy2Tech, that the EC approved a couple of months ago.

IPCEI Hy2Tech is focused on the development of novel technologies for the production, storage, transportation and distribution of hydrogen as well as applications in the mobility sector.

The newly approved IPCEI Hy2Use will cover a wide part of the hydrogen value chain by supporting:

  • the construction of hydrogen-related infrastructure, notably large-scale electrolysers and transport infrastructure, for the production, storage and transport of renewable and low-carbon hydrogen; and
  • the development of innovative and more sustainable technologies for the integration of hydrogen into the industrial processes of multiple sectors, especially those that are more challenging to decarbonise, such as steel, cement and glass.

The IPCEI is expected to boost the supply of renewable and low-carbon hydrogen, thereby reducing dependency on the supply of natural gas in line with the REPowerEU plan.

The Commission’s approval of this IPCEI is part of the wider effort to support the development of an innovative and sustainable European hydrogen industry.

In 2018, the EC established the Strategic Forum for IPCEI, a joint body of representatives from member states and industry.

In November 2019, the Strategic Forum published its report and identified, among others, Hydrogen Technologies and Systems as one of several key strategic value chains for Europe.

In July 2020, the Commission published its EU Hydrogen Strategy, setting ambitious goals for clean hydrogen production and use, and launched the European Clean Hydrogen Alliance, bringing together the European hydrogen community (industry, civil society, public authorities).

Last week, the EC announced the creation of a new €3 billion European Hydrogen Bank aimed at bridging the investment gap and connecting future supply and demand.

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