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The European Commission has announced over €250 million in grants from the Connecting Europe Facility (CEF) to support 21 hydrogen infrastructure development studies across multiple EU nations. This funding is part of a broader €1.2 billion initiative aimed at enhancing cross-border energy infrastructure, including hydrogen and offshore electricity grid projects.
A significant portion of the funding will go towards key hydrogen projects, such as the BarMar-H2med project between Spain and France, backbone projects in Italy, Portugal, and Spain, as well as hydrogen corridors in the Baltic region. In addition, companies from France, Germany, Portugal, and Spain have formed an alliance for the H2Med Southwestern Hydrogen Corridor to connect hydrogen production, storage, and consumption projects, with the goal of establishing a European hydrogen single market by the early 2030s.
In December 2024, gas transmission system operators (TSOs) from Finland, Estonia, Latvia, Lithuania, Poland, and Germany announced feasibility studies for the Nordic-Baltic Hydrogen Corridor (NBHC). Before the feasibility phase begins, the TSOs will jointly conduct a commercial principles study to assess cross-border cost allocation and develop tariff models that ensure financial viability for all stakeholders.
Senior Vice President of Hydrogen Development at Finland’s Gasgrid, Sara Kärki, welcomed the EU's investment, emphasizing that Finland and the Baltic Sea region are key to Europe's hydrogen economy and climate targets. Meanwhile, EU Commissioner for Energy and Housing, Dan Jørgensen, highlighted that this is the largest-ever grant awarded under the CEF energy program. He stressed that these projects will not only help integrate energy markets but also safeguard Europe’s industrial competitiveness while advancing decarbonization efforts.
Beyond hydrogen, the EU funding package will also support eight electricity grid projects, including offshore and smart electricity grids, with nearly €750 million allocated. Additionally, €250 million will finance three CO2 infrastructure construction projects and nine preparatory studies. The overall initiative aligns with the EU’s Trans-European Networks for Energy (TEN-E) policy framework and the revised TEN-E regulation, which for the first time includes hydrogen and offshore grid projects.
The Draghi report has underscored the importance of cross-border energy infrastructure investments, viewing them as crucial for Europe's competitiveness and energy market integration. With this funding, the EU aims to strengthen its energy security, accelerate the transition to renewable energy, and mitigate investment risks in the emerging hydrogen market.
News Source- https://ec.europa.eu/commission/presscorner/detail/en/ip_25_377
