Second major European hydrogen initiative launched with Austrian participation

European Commission approves second IPCEI large-scale hydrogen project with €12.2 billion – Austria participates with two companies

Following the approval of the first IPCEI Hydrogen (Hy2Tech) in July this year, the European Commission has now also approved the second important hydrogen project of common European interest in September 2022. Austria participates in this so-called IPCEI (Important Project of Common European Interest) Hy2Use, which focuses on the decarbonisation of industry through the application of renewable hydrogen with a highly innovative consortium project involving two Austrian companies.

A total of 35 projects run by 29 companies from 13 member states of the European Union are participating in the European IPCEI Hy2Use. The member states are handing out subsidies of up to €5.2 billion, which will trigger an additional €7 billion in private investment over the next few years.

 “I am very pleased that we can now announce the launch of the second wave of our European hydrogen initiative and that the European Commission has approved the ambitious projects so quickly. The upscaling of innovative hydrogen technologies will be a decisive factor in achieving national and European climate targets, reducing our energy dependency, but also substantially strengthening Austria as a research and industrial location. The highly innovative consortium project run by the two Austrian companies in IPCEI Hy2Use also makes an important contribution to achieving the goals of the national hydrogen strategy,” says Climate Action Minister Leonore Gewessler.

“Expanding the hydrogen economy facilitates sustainable growth, which in turn strengthens Austria as a location for innovation. Building on the first IPCEI Hydrogen which focused on technology, the European Commission’s approval of the second IPCEI Hydrogen in the field of industrial application sets the course for decarbonised, future-proof industry, and helps reduce one-sided energy dependencies. The funded projects also have the potential to create jobs at the companies in the Austrian consortium and beyond,” says Martin Kocher, Minister of Labour and Economy.

The Federal Ministry for Climate Action, Environment, Energy, Mobility, Innovation and Technology (BMK), together with the Federal Ministry of Labour and Economy (BMAW), is providing funding of 125 million euros from the European Recovery and Resilience Facility (RRF) for all IPCEI Hydrogen projects until 2026. Since the start of the negotiations on IPCEI Hy2Use, the two companies have been closely supported by experts from the ministries together with the Austria Wirtschaftsservice (aws) and the Austrian Research Promotion Agency (FFG). Now they will quickly implement all projects involved in IPCEI H2.

The Austrian companies involved in IPCEI Hy2Use are Borealis and Verbund.